Section FZ 7 — Income Tax Act 2007: Valuation of group assets: insurance proceeds from Canterbury earthquake

FZ 7 Valuation of group assets: insurance proceeds from Canterbury earthquake When this section applies (1) This section applies for the purposes of sections FE 16 and FE 18 (which relate to the valuation of the assets of a person's New Zealand group and worldwide group) and a person if— (a) an asset of the person's New Zealand group is damaged as a result of a Canterbury earthquake, as that term is defined in section 4 of the Canterbury Earthquake Recovery Act 2011; and (b) the asset is impaired, or derecognised, under generally accepted accounting practice as a result of the damage; and (c) insurance for the damage is recognised at a later date under generally accepted accounting practice. Optional treatment of insurance (2) The person may choose to include an amount of the insurance, corresponding to the amount of the impairment or the derecognised value of the asset, in the value of the total group assets of the person's New Zealand group during the period— (a) beginning with the impairment or derecognition of the asset; and (b) ending before the earlier of— (i) the recognition of the amount of insurance: (ii) the beginning of the 2016–17 income year. Corresponding treatment for worldwide group (3) If a person includes an amount under subsection (2) in the value of the total group assets of the person's New Zealand group for a period, the person must include the amount in the value of the total group assets of the person's worldwide group for the period. Notice to Commissioner (4) A person choosing to apply subsection (2) for an income year must give to the Commissioner— (a) notice that the person has applied this section for the income year; and (b) the amount of income that would arise under section CH 9 (Interest apportionment: excess debt entity) for the income year in the absence of this section; and (c) the amount of income that arises under section CH 9 for the income year after the application of this section; and (d) further information required by the Commissioner. Form and timing of notice (5) The information required by subsection (4) must be given— (a) in the form and by the means prescribed by the Commissioner; and (b) no later than the later of 30 November 2012 and the day by which the person is required to make a return of income for the corresponding tax year. Defined in this Act: Commissioner , generally accepted accounting practice , income year , return of income , total group assets Section FZ 7 heading: inserted (with effect on 4 September 2010), on 2 November 2012 (applying for income years ending after 4 September 2010 and before the 2016–17 income year), by section 73(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section FZ 7: inserted (with effect on 4 September 2010), on 2 November 2012 (applying for income years ending after 4 September 2010 and before the 2016–17 income year), by section 73(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).