Section EW 17 — Income Tax Act 2007: Straight-line method

EW 17 Straight-line method Who may use straight-line method (1) A person who is a party to a financial arrangement may use the straight-line method if— (a) the total value of all the financial arrangements to which the person is a party in an income year has been $1,850,000 or less on every day in the income year; and (b) the person complies with section EW 25(1) ; and (c) the person is not required to use a method under section EW 15B . Calculation of total value of financial arrangements (2) When calculating total value, the person must— (a) include every one of their financial arrangements, whether the financial arrangements rules or the old financial arrangements rules apply to it; and (b) use the following values: (i) for a fixed principal financial arrangement, its face value: (ii) for a variable principal debt instrument, the amount owing by or to the person under the financial arrangement on the relevant day: (iii) for a financial arrangement to which the old financial arrangements rules apply, the value determined under those rules. Increase in specified sum (3) The Governor-General may make an Order in Council increasing the sum specified in subsection (1). Defined in this Act: amount , financial arrangement , financial arrangements rules , fixed principal financial arrangement , IFRS , income year , old financial arrangements rules , variable principal debt instrument , Compare: 2004 No 35 s EW 17 Section EW 17(1)(a): amended, on 1 April 2009, by section 7(1) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section EW 17(1)(b): amended, on 1 April 2008, by section 368(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EW 17(1)(c): added, on 1 April 2008, by section 368(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EW 17 list of defined terms IFRS : inserted, on 1 April 2008, by section 368(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).