Section EE 59 — Income Tax Act 2007: Base value in section EE 56 when property is petroleum-related depreciable property

EE 59 Base value in section EE 56 when property is petroleum-related depreciable property When this section applies (1) This section applies when the item is an item of petroleum-related depreciable property to which both the following apply: (a) section EZ 22(1) (Base value and total deductions in section EE 56 : before 1 April 1995) does not apply to it; and (b) the person ( person A ) acquires it from an associated person. Base value (2) Base value is the lesser of— (a) the cost of the item to person A; and (b) the total of the amounts described in subsections (3) and (4). First amount for purposes of subsection (2)(b) (3) The amount is the cost of the item to— (a) the associated person, if the associated person did not acquire the item from either person A or another person associated with person A; or (b) whoever owned the item, whether person A or the associated person, at the start of an unbroken chain of ownership made up of person A and 1 or more persons associated with person A. Second amount for purposes of subsection (2)(b) (4) The amount is all expenditure incurred for the item by person A and the associated person or associated persons before the date on which person A acquired the item. Cost and expenditure (5) In this section, “ cost ” and “ expenditure ” are qualified as follows: (a) expenditure is excluded from them if it is expenditure for which a person has been allowed a deduction for an amount of depreciation loss they have had under section EE 38(3) or EE 48(2) or the corresponding provision of the Income Tax Act 2004 or the Income Tax Act 1994; and (b) expenditure is not excluded from them if it is expenditure for which a person has been allowed a deduction for an amount of depreciation loss they have had under any other provision of this subpart or the corresponding provision of the Income Tax Act 2004 or the Income Tax Act 1994; and (c) expenditure is excluded from them if it is expenditure for which a person is allowed a deduction under any other subpart or the corresponding provision of the Income Tax Act 2004 or the Income Tax Act 1994; and (d) expenditure is excluded from them if it is expenditure for which a person would have been allowed a deduction under any other subpart if this Act had applied or the corresponding provision of the Income Tax Act 2004 or the Income Tax Act 1994 if the Act had applied. Defined in this Act: acquire , amount , associated person , deduction , depreciation loss , own , petroleum-related depreciable property , Compare: 2004 No 35 s EE 50