16 SEPTEMBER NEW ZEALAND GAZETTE

"On hand" means, in respect of a taxpayer, livestock of any type physically under the control of that taxpayer whether owned, bailed, or leased but excluding any deficiencies of livestock associated with bailed or leased livestock and any livestock not owned by the taxpayer but being under the control of the taxpayer for a fee.

"Purchase cost" means:

(a) In the case of livestock purchased in an income year, without progeny at foot, the purchase price of that livestock and other costs associated with the purchase of that livestock; and

(b) In the case of livestock purchased in an income year, with progeny at foot, for an undivided cost, the purchase price of that livestock and other costs associated with the purchase of that livestock as determined by a fair and reasonable apportionment of costs between the parents and progeny; and

(c) In the case of high-priced livestock required to be valued under the national average market value scheme, the national average market value relating to that class of livestock as if that livestock was purchased at that cost; and

(d) In the case of livestock commencing to be bailed in an income year, the market value of the livestock bailed to the bailee in that income year.

"Rising one year" means, in respect of any closing balance date for an income year, livestock aged between birth and one year of age at that date;

"Rising three year" means, in respect of any closing balance date for an income year, livestock aged between two years and three years of age at that date;

"Rising two year" means, in respect of any closing balance date for an income year, livestock aged between one year and two years of age at that date;

"Rising two year male non-breeding cattle inventory grouping" means, in respect of any closing balance date in any income year, all male non-breeding cattle which are rising two years of age at that date;

"Self assessed cost" means the cost set under the method for establishing the cost of livestock production as detailed in a guideline issued by the Commissioner.

"Trading stock scheme" means the livestock valuation scheme provided by the former section 86 of the Act.

Value Under National Standard Cost Scheme for Sheep, Dairy Cattle, Beef Cattle, Deer, Goats and Pigs

3. Valuation of livestock less than one year of age of each livestock type (other than pigs)

Rising one year livestock of a taxpayer of each type of livestock (other than pigs) shall have an average value, at the end of an income year, for the purposes of the national standard cost scheme, calculated in accordance with the following formula:

((a + b - c) × d) + e - (f × g)
a + b

where—

a is the number of rising one year livestock of the type on hand at the end of the income year;

b is the number of livestock of the type sold by the taxpayer during the income year which would have been, if still on hand, rising one year livestock of the taxpayer at the end of that income year;

c is the number of livestock of the type purchased by the taxpayer during that income year which are, or would have been if still on hand, rising one year livestock of the taxpayer at the end of the income year;

d is the national standard cost for that income year of rising one year livestock of the type;

e is the aggregate purchase cost of livestock of the type purchased during that income year by the taxpayer which are, or would have been if still on hand, rising one year livestock of the taxpayer at the end of the income year;

f is, in the case of either beef or dairy cattle, the number of bobby calves purchased by the taxpayer during the income year; and

g is the national standard cost for the income year of acquired bobby calves.

Where (a + c - c) in the above formula results in a negative figure the average value, at the end of an income year, for the purposes of the national standard cost scheme, shall be calculated in accordance with the following formula:

e + (f × g)
c

where the items in this formula are those referred to in the first formula in this paragraph.

4. Valuation of livestock intake (excluding pigs and rising two year and three year or older male non-breeding cattle)

Livestock intake of a taxpayer of each type of livestock (excluding pigs and rising two year and rising three year or older male non-breeding cattle) shall have an average value, at the end of an income year, for the purposes of the national standard cost scheme, calculated in accordance with the following formula:

(a × b) + c + d
a + e

where—

a is the number of rising one year livestock, which are not rising one year male non-breeding cattle of the taxpayer, of the type on hand at the end of the immediately preceding income year;

b is the national standard cost for that income year of rising two year livestock of the type;

c is the aggregate purchase cost of livestock of the type purchased during the income year by the taxpayer (excluding rising two year or older male non-breeding cattle) which are, or would have been if still on hand, rising two year or older livestock of the taxpayer at the end of that income year;

d is the aggregate value for income tax purposes of rising one year livestock which are not rising one year male non-breeding cattle of the taxpayer of the type on hand at the end of the immediately preceding income year; and

e is:

(i) in the case of dairy cattle or beef cattle, the number of livestock of the type purchased during the income year by the taxpayer (excluding rising two year and older male non breeding cattle) which are, or would have been if still on hand, rising two year or older livestock of the taxpayer at the end of that income year; and

(ii) in the case of sheep, deer and goats, is the number of livestock of the type purchased during the income year by the taxpayer which are, or would have been if still on hand, rising two year or older livestock of the taxpayer at the end of that income year.

5. Valuation of rising two year male non-breeding cattle

Rising two year male non-breeding dairy cattle

In respect of the dairy cattle livestock type, the rising two year male non-breeding cattle of this type shall have an average value, at the end of an income year, for the purposes of the national standard cost scheme, calculated