NEW ZEALAND GAZETTE

No. 223

zone to a point 33° 25'S and 177° 58'E; and then proceeding in a generally south-easterly direction along the outer limits of the exclusive economic zone to a point 34° 22.1'W and 179° 29.6'E; then proceeding in a straight line to a point 34° 34.3'S and 179° 51.0'W; then proceeding in a generally south-easterly direction along the outer limits of the exclusive economic zone to a point 35° 20.0'S and 178° 30.0'W, and then proceeding along a straight line on a true bearing of 225° to East Cape on the east coast of the North Island (at 37° 41.5'S and 178° 32.9'E); then proceeding in a generally westerly and north-westerly direction along the line of the mean high-water mark of the east coast of the North Island to the point of commencement.

(b) Rock Lobster Management Area 3—Gisborne

All that area of New Zealand fisheries waters enclosed by a line commencing at the mean high-water mark at East Cape on the east coast of the North Island (at 37° 41.5'S and 178° 32.9'E); and then proceeding along a straight line on a true bearing of 45° to the outer limits of the exclusive economic zone to a point 35° 20.0'S and 178° 30.0'W, and then proceeding in a generally southerly direction along the outer limits of the exclusive economic zone to a point 40° 21'S and 177° 56'W; then proceeding in a straight line to a point 44° 08'S and 178° 23'E; then proceeding along a straight line on a true bearing of 352° to the mouth of the Waiau River on the east coast of the North Island (at 39° 03.5'S and 177° 25.5'E); then proceeding in a generally northerly direction along the line of the mean high-water mark of the east coast of the North Island to the point of commencement.

Dated at Wellington this 18th day of December 1989.

COLIN MOYLE, Minister of Fisheries.

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Income Tax Act 1976

Determination G1A: Apportionment of Income and Expenditure on a Daily Basis

This determination may be cited as “Determination G1A: Apportionment of Income and Expenditure on a Daily Basis”.

1. Explanation—(which does not form part of the determination)—

(1) This determination rescinds and replaces Determination G1: Apportionment of Daily Income and Expenditure, made by the Commissioner on the 13th day of May 1987. This determination differs from Determination G1 in the interpretation of a 360 day basis for calculating the number of days between two given dates.

(2) 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—(1) This determination is made pursuant to paragraph (a) and (b) of section 64E (1) and section 64E (6) of the Income Tax Act 1976.

(2) This determination is required to be applied in circumstances referred to in other determinations.

(3) Determination G1, Apportionment of Daily Income and Expenditure is hereby rescinded with effect from the day on which this Determination G1A is signed.

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 the income or expenditure has been calculated pursuant to paragraph (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 section 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 and calculated as if every calendar month of the period had exactly 30 days;

Provided that if the ending date is the 31st day of the month and—

(i) The starting date of the period is not the 30th or 31st day of a month, the ending date shall be included in the number of days in the period;

(ii) The starting date of the period is the 30th or 31st day of a month, the ending date 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 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
--- x $294,000 = $99,633.33
180

This 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 this 1986–87 and 1987–88 income years respectively.

This determination is signed by me on the 4th day of December in the year 1989.

R. D. ADAIR, Deputy Commissioner of Inland Revenue.

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Determination G18: International Futures and Option Markets

This determination may be cited as “Determination G18: International Futures and Option Markets”.