Section EK 7 — Income Tax Act 2007: Deduction for payment

EK 7 Deduction for payment When this section applies (1) This section applies when a person is allowed a deduction under section DQ 4 (Environmental restoration accounts scheme) for a payment to their environmental restoration account under section EK 2 . Amount of deduction (2) The amount of the deduction is calculated using the formula— payment tax rate. Definition of items in formula (3) The items in the formula are defined in subsections (4) and (5). Payment (4) Payment is the lesser of— (a) the person’s payment to the Commissioner under section EK 2 for the income year; and (b) the person’s maximum payment for the income year. Tax rate (5) Tax rate is the highest rate of income tax on taxable income that— (a) is set out in schedule 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits); and (b) would apply to the person for the tax year if the person had sufficient taxable income. Timing of deduction (6) The person is allowed the deduction for the income year for which the payment is made. Defined in this Act: Commissioner , deduction , environmental restoration account , income tax , income year , maximum payment , pay , tax year , taxable income , Compare: 2004 No 35 s EK 7 Section EK 7(5)(a): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).