Section HF 10 — Income Tax Act 2007: Market value calculations

HF 10 Market value calculations When this section applies (1) This section applies to property of a company or a trust when the company or the trustees of the trust, having stopped being a Maori authority, reverts to being a Maori authority. Treatment (2) The company or the trustees, as applicable, are treated as— (a) disposing of the company’s property, or the trust’s property, immediately before becoming a Maori authority for a consideration that is the market value of the property on the date of disposal; and (b) acquiring the property of the Maori authority for a consideration that is the market value of the property on the date of disposal referred to in paragraph (a). Market value for both (3) In subsection (2), the market value of the property is the market value for both the company, or the trustees, as applicable, and the Maori authority. Depreciation (4) Despite sections EE 55 to EE 60 , and EZ 22 (which relate to depreciation), the cost to a Maori authority of property to which this section applies is the lesser of— (a) the market value of the property on the date it was acquired; and (b) the original cost of the property to the company or the trust. Defined in this Act: company , Maori authority , trustee , Compare: 2004 No 35 s HI 9