Section EZ 4 — Income Tax Act 2007: Valuation of livestock bailed or leased as at 2 September 1992

EZ 4 Valuation of livestock bailed or leased as at 2 September 1992 When this section applies (1) This section applies when— (a) an owner of livestock valued a class of livestock for the 1991–92 income year under section 86 of the Income Tax Act 1976 (as that section was in force before its repeal by section 21 of the Income Tax Amendment Act (No 2) 1993); and (b) either— (i) the livestock was, as at 2 September 1992, at the use of a person under a bailment, lease, or other agreement that the owner entered into on or before that date, or was, on or before that date, livestock that was subject to a binding contract to bail or lease the livestock to a person, or otherwise allow them to use the livestock; or (ii) the class of livestock was not one that the owner had on hand in the previous income year, but was a class that, as at 2 September 1992, was at the use of a person under a bailment, lease, or other agreement that the owner entered into on or before that date. Rolling average value (2) The owner may value the livestock at a value equal to 70% of the rolling average value of that class of livestock. When subsection (2) applies (3) Subsection (2) applies for the 1992–93 income year and any later income year in which the livestock continues to be bailed, leased, or otherwise used by the person under the bailment, lease, or other agreement. Number of livestock valued (4) The number of specified livestock of a class that may be valued under this section is the number that is the least of— (a) the number of livestock of the class bailed, leased, or otherwise used (or, for a binding contract entered into before 2 September 1992 but not yet applying, the number of livestock of that class provided for in the contract); and (b) the number of livestock of the class bailed, leased, or otherwise used as at the end of the 1992–93 income year; and (c) the lesser of the opening and closing number of stock of the class bailed, leased, or otherwise used in a later income year up to and including the income year in which the livestock is being valued. Meaning of rolling average value (5) In this section, rolling average value , for an income year and a class of specified livestock, means one-third of the sum of the national average market values set for that income year and each of the 2 previous income years for livestock of that class. Defined in this Act: class , income year , lease , national average market value , rolling average value , specified livestock , Compare: 2004 No 35 s EZ 4