28 MAY THE NEW ZEALAND GAZETTE 2331

Service 6903: Masterton to Wellington

Thence per normal timetable.

A7/87/189 New Zealand Railways Corporation, Wellington: Amend Passenger Service Licence No. 12468 by change of timetable on Service 6793 Rotorua to Taumarunui as follows:

A7/87/190 New Zealand Railways Corporation, Wellington: Amend Passenger Service Licence No. 12468 by change of timetable as follows:

Service 6818 Wanganui to Ohakune:

Service 6807: Ohakune to Wanganui

A7/87/186 Guthreys Coachlines Ltd., Wellington: Amend Passenger Service Licence No. 12231 change of route on the Airport Service as follows:

Ex Wellington Airport via:

Stewart Duff Drive.
Calabar Road.
Wellington Road.
Ruahine Street.
Paterson Street.
Dufferin Street.
Rugby Street.
Wakefield Street.
Victoria Street.
Willeston Street.
Lambton Quay.
Bunny Street.

The outward route will remain unchanged.

A7/87/194: Brian Joseph Whitaker, Waikanae: New Passenger Service Licence for the carriage of passengers from Waikanae to Wellington and return during the working week. Depart Waikanae 7 a.m. depart Wellington 4.40 p.m.

Dated at Wellington this 22nd day of May 1987.

J. MOIR, Secretary.

Wellington District & No. 7 Transport District Licensing Authority.

Determinations Made by Commissioner of Inland Revenue Under Section 64F(1) of the Income Tax Act 1976

SCHEDULE

APPORTIONMENT OF INCOME AND EXPENDITURE ON A DAILY BASIS

DETERMINATION G1: This determination may be cited as “Determination G1: Apportionment of Daily Income and Expenditure”.

1. Explanation (which does not form part of the determination). This determination requires that income derived or expenditure incurred in respect of a period shall be apportioned on a straight line basis among the income years in which the period falls, according to the number of days in the period calculated on either a 365- or a 360-day basis.

2. Reference—This determination is made pursuant to paragraphs (a) and (b) of section 64E(1) of the Income Tax Act 1976. This determination is required to be applied in circumstances referred to in other determinations.

3. Scope of determination—Unless its application is specifically excluded in another determination, this determination applies to all amounts of income derived or expenditure incurred in respect of a period where the amount of income or expenditure has been calculated pursuant to any other determination made pursuant to paragraphs (a) or (b) of section 64E(1) of the Income Tax Act 1976.

4. Principle—The apportionment of income and expenditure on a daily straight line basis in respect of a period of not more than 1 year permits the allocation of income and expenditure to income years within the period on a simple basis. It assumes that income and expenditure accrue at a flat dollar rate over each day in the period.

5. Interpretation—In this determination—

(a) Unless the context otherwise requires, expressions used have the same meanings as in sections 64B to 64M of the Income Tax Act 1976;

(b) “Period” means the term, not exceeding 1 year, commencing immediately after a payment is payable or receivable and ending when the next payment is payable or receivable;

(c) The number of days in a period calculated on a 365-day basis means the actual number of days in the period including the ending date of the period but excluding the starting date of the period; and

(d) The number of days in a period calculated on a 360-day basis means the number of days falling within the period including the ending date of the period but excluding the starting date of the period and calculated as if every calendar month had exactly 30 days; and for this purpose—

(i) If the ending date of the period is the 31st day of a month it shall be deemed to be the 30th day of the month unless the starting date of the period is a day within the same month;

(ii) If the starting date of the period is the 31st day of a month it shall be deemed to be the 30th day of the month.

6. Method—For the purposes of section 64C of the Income Tax Act 1976 the income derived or expenditure incurred by a holder or an issuer of a financial arrangement in respect of a period shall be apportioned among the income years of the holder or issuer in which that period falls pro rata with the number of days in the period lying within each income year calculated (at the option of the holder or the issuer) on a 360- or 365-day basis.

7. Example—

On 29 January 1987 a company issues a 180-day bill for $3,000,000, at a discount of $294,000.

The company’s balance date is 31 March, and it elects to recognise the interest expense on a 365-day basis.

There are 61 days from 29 January to 31 March 1987.

Therefore— 61/180 × $294,000 = $99,633.33 will be brought into account as expenditure in the company’s 1986–87 income year, and the balance of $194,366.67 will be brought into account in its 1987–88 income year for income tax purposes pursuant to section 64F of the Income Tax Act 1976.

If the company had elected to recognise the interest expense on a 360-day basis, then the number of days from 29 January to 31 March 1987 would have been 62, and amounts of $101,266.67 and $192,733.33 would have been brought into account in its 1986–87 and 1987–88 income years respectively.

This determination is signed by me on the 13th day of May in the year 1987.

JOHN SIMCOCK, Commissioner of Inland Revenue.

REQUIREMENTS AS TO PRECISION

DETERMINATION G2: This determination may be cited as “Determination G2: Requirements as to Precision”.

1. Explanation (which does not form part of the determination). This determination sets out the level of precision acceptable in calculations made under other determinations made by the Commissioner pursuant to section 64E(1) of the Income Tax Act 1976.

2. Reference—This determination is made pursuant to section 64E(1) of the Income Tax Act 1976. It defines the precision acceptable in calculations made under other determinations made by the Commissioner pursuant to section 64E(1) of the Income Tax Act 1976.