Section EI 7 — Income Tax Act 2007: Leases: income derived in anticipation

EI 7 Leases: income derived in anticipation When this section applies (1) This section applies when a person derives, in a tax year, income in anticipation from fines, premiums, a payment of goodwill on the grant of a lease, or in another similar way. Timing of income (2) The Commissioner may allocate the income between the income year in which the person derives it and any 5 later income years. Notice (3) The following provisions apply to an allocation for the purposes of subsection (2): (a) the person must give a notice to the Commissioner requesting the Commissioner to make the allocation: (b) the person must give the notice in the tax year following the tax year to which the income year of derivation corresponds: (c) the Commissioner may cancel the allocation at any time. Cancellation of allocation (4) If the Commissioner cancels the allocation, the income allocated to the income year in which the cancellation occurs and to future income years is allocated to the income year before the income year in which the cancellation occurs. Defined in this Act: Commissioner , income , income year , lease , notice , pay , tax year , Compare: 2004 No 35 s EI 6