Section EZ 23C — Income Tax Act 2007: Insurance for Canterbury earthquake damage of property: deemed sale and purchase

EZ 23C Insurance for Canterbury earthquake damage of property: deemed sale and purchase When this section applies (1) This section applies for a person and an item of depreciable property and an income year (the current year ) before the 2016–17 income year when— (a) the item is damaged by a Canterbury earthquake as that term is defined in section 4 of the Canterbury Earthquake Recovery Act 2011; and (b) the person is entitled to an amount of insurance or compensation for the damage to the item; and (c) the item is assessed by the payer of the insurance or compensation (the insurer ) as uneconomic to repair; and (d) the damage does not meet the requirements of section EE 47(4) (Events for purposes of section EE 44 ). Deemed sale and repurchase of item (2) The person is treated as, on the date of the Canterbury earthquake,— (a) disposing of the item for the amount of insurance or compensation; and (b) reacquiring the item for zero consideration. Relationship with section EE 52 (3) This section overrides section EE 52 (Amount of depreciation recovery income when compensation received). Defined in this Act: amount , depreciable property , income year Section EZ 23C: inserted (with effect on 4 September 2010), on 2 November 2012 (applying for the 2010–11 to the 2015–16 income years), by section 57(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).