Section EW 23 — Income Tax Act 2007: Failure to use method for financial reporting purposes

EW 23 Failure to use method for financial reporting purposes When this section applies (1) This section applies when a person would be allowed to use a method but for the fact that the person does not comply with whichever is relevant of sections EW 16(2)(d) , EW 18(1)(f) , EW 20(2)(f) and EW 21(f) . Person treated as complying (2) The person is treated as complying with whichever is relevant of sections EW 16(2)(d) , EW 18(1)(f) , EW 20(2)(f) and EW 21(f) if the method that the person uses for each financial arrangement— (a) is used for the financial arrangement, and each financial arrangement that is the same as, or similar to, the arrangements, for every income year over its term for the purposes of the financial arrangements rules; and (b) appropriately reflects the dominant purpose for which the person entered into the financial arrangement; and (c) is not used for the purpose of tax avoidance; and (d) has been approved for use in circumstances applying to the person by the Commissioner, either by giving notice to the person or by making a determination under section 90AC(1)(f) of the Tax Administration Act 1994. Qualification on subsection (2)(a) (3) A method complies with subsection (2)(a), even if it is a change from a previous method, as long as the Commissioner approves the change in method under the circumstances or conditions specified in a determination under section 90AC(1)(g) of the Tax Administration Act 1994. IFRS financial reporting (4) This section is modified by section EZ 32B (Transitional rule for IFRS reporting). Defined in this Act: Commissioner , financial arrangement , financial arrangements rules , IFRS , income year , notice , tax avoidance , Compare: 2004 No 35 s EW 23 Section EW 23(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 143(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EW 23(1): amended, on 1 April 2008, by section 374(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EW 23(2): amended (with effect on 1 April 2008), on 6 October 2009, by section 143(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EW 23(2): amended, on 1 April 2008, by section 374(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EW 23(4) heading: added, on 1 April 2008, by section 374(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EW 23(4): added, on 1 April 2008, by section 374(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EW 23 list of defined terms IFRS : inserted, on 1 April 2008, by section 374(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).