Section GB 18 — Income Tax Act 2007: Arrangements to acquire film rights or incur production expenditure

GB 18 Arrangements to acquire film rights or incur production expenditure When this section applies (1) This section applies if the Commissioner considers that 2 persons have made arrangements so that any of the following sections applies more favourably in relation to a person in an income year than would have applied without the arrangements: (a) section DS 1 (Acquiring film rights): (b) section DS 2 (Film production expenditure): (c) section EJ 4 (Expenditure incurred in acquiring film rights in feature films): (d) section EJ 5 (Expenditure incurred in acquiring film rights in films other than feature films): (e) section EJ 7 (Film production expenditure for New Zealand films): (f) section EJ 8 (Film production expenditure for films other than New Zealand films). Deduction reduced (2) The deduction allowed to the person under section DS 1 or DS 2 is reduced to the amount that the Commissioner considers would have been allowed had the arrangements not occurred. Allocation (3) The deduction allocated under section EJ 4 , EJ 5 , EJ 7 , or EJ 8 is allocated to the income year to which the Commissioner considers it would have been allocated had the arrangements not occurred. Defined in this Act: arrangement , Commissioner , deduction , film production expenditure , film right , income year , Compare: 2004 No 35 ss GC 11B , GD 12B