Section YD 6 — Income Tax Act 2007: Apportionment of income from sea transport

YD 6 Apportionment of income from sea transport When this section applies (1) This section applies when a non-resident derives an amount of income from transporting people or property by sea from New Zealand to a destination outside New Zealand. Five percent from source in New Zealand (2) Five percent of the amount is treated as having a source in New Zealand and the remainder of the amount is treated as not having a source in New Zealand. Reduction by Commissioner (3) Despite subsection (2), the Commissioner may reduce the amount that is treated as having a source in New Zealand to the extent to which the country in which the non-resident is resident would treat an amount derived by a New Zealand resident from sea transport from that country as— (a) not having a source in that country: (b) otherwise as exempt from income tax in that country. No deduction (4) The non-resident is denied a deduction under section DW 3 (Non-resident general insurers and shippers) for expenditure or loss incurred. Intervening stop in New Zealand (5) The transport of people or property from a port in New Zealand is treated as transport to a place outside New Zealand even if the ship calls at another New Zealand port before leaving New Zealand. Defined in this Act: amount , Commissioner , income , income tax , New Zealand resident , non-resident , Compare: 2004 No 35 ss FC 18 , FC 19 Section YD 6(4): amended, on 2 November 2012, by section 159 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).