Section EZ 12 — Income Tax Act 2007: Amount of depreciation loss for item acquired from associated person on or before 23 September 1997

EZ 12 Amount of depreciation loss for item acquired from associated person on or before 23 September 1997 When this section applies (1) This section applies when, on or before 23 September 1997, a person ( person A ) acquires an item from an associated person entitled to a deduction for an amount of depreciation loss for it. Exclusions (2) This section does not apply— (a) if the item is acquired under a relationship agreement in circumstances to which section FB 21 (Depreciable property) applies; or (b) if the item is listed in schedule 14 (Depreciable intangible property) and the price that person A pays is income of the associated person; or (c) if the item is not listed in schedule 14 and the Commissioner is of the opinion that the circumstances are such that a person should be allowed a deduction for an amount of depreciation loss for the item based on the actual price or other consideration given for it. No greater amount of depreciation loss (3) Whether or not the associated person has been allowed a deduction for an amount of depreciation loss, person A does not have a greater amount of depreciation loss for the item than that which the associated person would have had if the associated person had kept the item. Amount of depreciation loss dealt with under section EE 48 (4) If the associated person has an amount of depreciation loss that has been dealt with under section EE 48 (Effect of disposal or event), person A has an amount of depreciation loss for the item based on the total of— (a) all amounts dealt with under section EE 48 ; and (b) the depreciated value of the item immediately before person A acquired it. When subsection (6) applies and does not apply (5) Subsection (6) applies when, on or before 23 September 1997, the holder of management rights created under the Radiocommunications Act 1989 grants a licence right under that Act to an associated person. However, it does not apply when the Crown acting by and through the Secretary of Commerce is named as the manager under section 11(1) of the Radiocommunications Act 1989. Licence right price (6) The price of the licence right is treated as being zero for the purposes of subpart EE (Depreciation). Defined in this Act: amount , associated person , Commissioner , depreciation loss , pay , relationship agreement , Compare: 2004 No 35 s EZ 11