Section HR 6 — Income Tax Act 2007: Airport operator’s assets

HR 6 Airport operator’s assets Ownership of airport assets (1) An airport operator is treated as owning each of its airport assets. Time of acquisition (2) An airport operator is treated as having acquired an asset at the time— (a) it acquired it other than by way of purchase: (b) it agreed to use it: (c) it started to have the power to use it. Cost of acquisition (3) An airport operator is treated as having incurred, in acquiring an asset, its market value at the time of acquisition. Ceasing to be airport asset (4) If an asset ceases to be an airport asset of the airport operator, other than on sale, the airport operator is treated as having sold it, at the time, for a price equal to its market value at the time. Disputes concerning value or timing (5) Subsection (6) applies if a question arises concerning— (a) the market value of an asset: (b) the cost of an airport asset: (c) the time at which an airport operator acquired, agreed to use, or started to have the power to use an asset. Resolved by agreement or Commissioner (6) The question must be resolved by agreement between the airport operator and the Commissioner or, failing agreement, by the Commissioner. Meaning of airport asset (7) In this section, for an airport operator, airport asset means— (a) an asset that, under the joint venture agreement and for the purposes of the airport operator’s activities, the airport authority— (i) acquires: (ii) agrees to use: (iii) is given the power to use: (b) an asset owned by a person for the purposes of a depreciation sinking fund for an airport asset: (c) an asset owned by a person for the purposes of a loan redemption sinking fund for a loan on which the interest payments are a charge against the joint venture income of the airport operator: (d) an asset acquired by the airport operator using funds that are, or by exchanging property that is, acquired in carrying on the airport operator’s activities and not allocated or distributed to the joint venturers. Exclusion (8) Subsection (7)(a) does not apply to an asset that— (a) the airport operator has— (i) disposed of: (ii) ceased to agree to use: (iii) ceased to have the power to use: (b) the airport operator has acquired, agreed to use or acquired the power to use under a lease, unless the lease is a specified lease or a finance lease. Defined in this Act: acquire , airport asset , airport authority , airport operator , airport operator’s activities , Commissioner , finance lease , interest , loan , specified lease , Compare: 2004 No 35 s OC 1(2)–(6)