Section EZ 7 — Income Tax Act 2007: Buying patent rights before 1 April 1993

EZ 7 Buying patent rights before 1 April 1993 When this section applies (1) This section applies when section DZ 8 (Buying patent rights before 1 April 1993) applies. Amount of deduction (2) The amount of the deduction is the expenditure that the person has incurred in buying the patent rights. Amount when patent rights expired or disposed of (3) If, before the expiry of the patent rights, the rights have come to an end or have been disposed of, the person is allowed a deduction of an amount that bears to the total sum of the expenditure on the purchase of the rights the same proportion as the unexpired term of the rights when they came to an end or were disposed of bears to their unexpired term at the date of their purchase. An amount that the person has otherwise been allowed as a deduction is not included. Timing of deduction: subsection (2) (4) The deduction referred to in subsection (2) is allocated to the income years in relation to which the term of the patent rights that is unexpired at the date of purchase applies. Timing of deduction: subsection (3) (5) The deduction referred to in subsection (3) is allocated to the income year in which the rights have come to an end or been disposed of. Defined in this Act: amount , deduction , income year , patent rights , Compare: 2004 No 35 s EZ 5