Section EK 8 — Income Tax Act 2007: Deduction for transfer

EK 8 Deduction for transfer 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 transfer to their environmental restoration account under section EK 15 , EK 16 , or EK 19 . Amount of deduction (2) The amount of the deduction is calculated using the formula— transfer tax rate. Definition of items in formula (3) The items in the formula are defined in subsections (4) and (5). Transfer (4) Transfer is the amount of the transfer to the person’s environmental restoration account that is treated as a payment by the person under section EK 15(3) , EK 16 , or EK 19 . 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 transfer is made. Defined in this Act: deduction , environmental restoration account , income tax , income year , maximum payment , pay , tax year , taxable income , Compare: 2004 No 35 s EK 8 Section EK 8(5)(a): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).