Section EK 22 — Income Tax Act 2007: Meaning of maximum payment

EK 22 Meaning of maximum payment Maximum payment (1) In this subpart, maximum payment means the maximum payment that under subsection (2) a person may make to the person’s environmental restoration account for an income year. Amount of maximum payment (2) The maximum payment that a person may make for an income year is the lesser of— (a) the amount by which the maximum account balance for the income year for the environmental restoration account is more than the amount in the environmental restoration account at the end of the income year: (b) the amount, if any, calculated under subsection (3) for the person and the income year. Maximum payment for first 5 years of environmental restoration funds scheme (3) If a person has a maximum account balance for the 2005–06 income year that is more than zero, the amount referred to in subsection (2)(b) for the person and for that income year, and for each of the later income years before the 2010–11 income year, is the amount calculated using the formula— level increase + (year × 0.2 × initial level) − contents. Definition of items in formula (4) In the formula,— (a) level increase is the greater of zero and the amount by which the maximum account balance for the income year is more than the maximum account balance for the 2005–06 income year: (b) year is 1 for the 2005–06 income year and increases by 1 for each successive income year to a maximum of 5 for the 2009–10 income year: (c) initial level is the maximum account balance for the 2005–06 income year: (d) contents is the amount in the environmental restoration account at the end of the income year. Defined in this Act: amount , business , environmental restoration account , income year , maximum payment , pay , Compare: 2004 No 35 s EK 22