Section EW 61 — Income Tax Act 2007: Election to use spreading method

EW 61 Election to use spreading method Election of spreading method (1) A cash basis person may choose to use a spreading method, unless subsection (2) applies. Election not allowed (2) A cash basis person may not choose to use a spreading method for a financial arrangement in the income year in which section EW 29 requires them to calculate a base price adjustment for the arrangement. How election made (3) The person makes the election by calculating a cash basis adjustment under section EW 62(1) . Effect of election (4) The person must use a spreading method for— (a) all financial arrangements to which the person is a party at the time of making the election; and (b) all financial arrangements the person enters into after the income year in which they make the election. How election revoked (5) The person revokes the election by giving notice to the Commissioner with a return of income and within the time that the return must be filed under section 37 of the Tax Administration Act 1994. Effect of revocation (6) The revocation applies to all financial arrangements the person enters into after the income year in which the notice is given. Defined in this Act: cash basis person , Commissioner , financial arrangement , income year , notice , return of income , spreading method , Compare: 2004 No 35 s EW 61