Section FM 16 — Income Tax Act 2007: Land or business: certain farming or forestry expenditure

FM 16 Land or business: certain farming or forestry expenditure When this section applies (1) This section applies in an income year when 2 companies ( company A and company B ) are in the same consolidated group for the whole of the income year, and — (a) company A transfers land to company B, and company B holds the land for the remainder of the income year; or (b) company A stops carrying on a business, and company B carries on the business for the remainder of the income year. Deductions for certain farming and forestry expenditure (2) Company A is allowed a deduction under sections DO 4 to DO 6 , and DO 12 (which relate to farming and aquaculture expenditure), or DP 3 (Improvements to forestry land) after the transfer or cessation of the business as if the transfer or cessation did not occur. Defined in this Act: business , company , consolidated group , deduction , income year , land , Compare: 2004 No 35 s FD 10(3)