Section EK 23 — Income Tax Act 2007: Other definitions

EK 23 Other definitions Meaning of maximum account balance (1) In this subpart, maximum account balance for a person and an income year means— (a) if the person does not meet the requirements of section EK 2 for the income year, zero: (b) if the person meets the requirements of section EK 2 for the income year, the amount calculated using the formula— provision × tax rate. Definition of items in formula (2) In the formula,— (a) provision is the provision in the person’s financial statements for future expenditure that— (i) is of a kind listed in schedule 19, part B (Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant); and (ii) is not of a kind listed in schedule 19, part C : (b) tax rate is the highest rate of income tax on taxable income that— (i) is set out in schedule 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits); and (ii) would apply to the person for the tax year if the person had sufficient taxable income. Meaning of environmental restoration account (3) In this subpart, environmental restoration account , for a person, means the account that the Commissioner keeps in the person’s name under section EK 4 . Defined in this Act: business , Commissioner , environmental restoration account , income tax , income year , taxable income , Compare: 2004 No 35 s EK 23 Section EK 23(2)(b)(i): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).