Section EI 5 — Income Tax Act 2007: Amount paid to lessor for non-compliance with covenant for repair

EI 5 Amount paid to lessor for non-compliance with covenant for repair When this section applies (1) This section applies when a lessor receives an amount of income under section CC 2 (Non-compliance with covenant for repair). Timing of income: if election made (2) The lessor may choose to allocate the income between the income year in which they receive the amount and any 1 or more of the following 4 income years. Timing of income: if election not made (3) Any part of the amount that the lessor does not allocate as described in subsection (2) is allocated to the fourth income year following the income year in which they receive the amount. Notice (4) The following provisions apply to an allocation for the purposes of subsection (2): (a) the lessor must give a notice to the Commissioner that specifies how the income has been allocated; and (b) the lessor must give the notice within the time required to file a return of income for the income year to which the income is allocated or within a longer time if the Commissioner agrees; and (c) the lessor must not revoke the election. Relationship with sections CC 2 and EI 6 (5) This section overrides section CC 2(2) and is overridden by section EI 6 . Defined in this Act: amount , Commissioner , income , income year , notice , return of income , Compare: 2004 No 35 s EI 4