Section EI 8 — Income Tax Act 2007: Disposal of land to the Crown

EI 8 Disposal of land to the Crown When this section applies (1) This section applies when a person derives income from disposing of any of their land to the Crown. Timing of income (2) The person may choose to allocate the income between the income year in which they derive it and any 3 later income years. Timing of deduction (3) If the person allocates income to 2 or more income years, they must allocate part of any deduction allowed for the cost of the land to the same income years. The part must bear the same proportion to the total deduction as the allocated income bears to the total amount of income. Application (4) The following provisions apply to an allocation for the purposes of subsection (2): (a) the person, or another person for them, must make a written application to the Commissioner: (b) the application must be made within 1 year after the end of the tax year in which the person derives the income or within a longer time if the Commissioner agrees: (c) the person must arrange to meet all income tax liabilities relating to the income: (d) the Commissioner may cancel the allocation at any time. Cancellation of allocation (5) If the Commissioner cancels the allocation,— (a) the whole of the income or deduction, as applicable, is allocated to the income year before the income year in which the cancellation occurs: (b) the cancellation does not affect income or a deduction that has been allocated to an earlier income year. Defined in this Act: amount , Commissioner , deduction , income , income tax liability , income year , tax year , year , Compare: 2004 No 35 s EI 7