NEW ZEALAND GAZETTE

21 APRIL

but shall exclude:

(d) Breeding sires, where the herd scheme is being used in conjunction with national standard cost for any of that livestock type; and

(e) Animals required to be valued under the high-priced livestock scheme,—

and the mature inventory grouping of any livestock type may be separated into sub-groups on the basis of those livestock used for or intended to be used by the taxpayer for breeding purposes, and those livestock not used for or not intended to be used by the taxpayer for breeding purposes:

“Mature livestock” means, in respect of an income year, livestock which is on hand at the start of the income year:

(a) In the case of male non-breeding cattle, rising three years of age or older; or

(b) In the case of sheep, cattle (other than male non-breeding cattle), goats and deer, rising two years of age or older; or

(c) In the case of pigs, rising one year of age or older:

“Maturing livestock” means, in respect of an income year, livestock which if owned at the end of the income year, would be:

(a) In the case of male non-breeding cattle, rising three years of age (or older in the case of non-breeding male cattle purchased in the income year):

(b) In the case of pigs, rising one year of age (or older in the case of pigs purchased in the income year):

(c) In the case of other livestock, rising two years of age (or older in the case of such livestock purchased in the income year):

“National average market value” means, in respect of any class of specified livestock and any income year, the value declared by the Governor-General by Order in Council in accordance with section 86G of the Act:

“National standard cost” means, in respect of livestock being—

(a) Rising one year sheep, dairy cattle, beef cattle, deer or goats born in the income year and owned by the taxpayer at birth:

(b) Opening rising one year livestock on hand at the beginning of the income year through to rising two years of age for sheep, beef cattle, dairy cattle, deer and goats:

(c) Opening rising two year male non-breeding beef cattle which are rising three years of age at closing balance date:

(d) Bobby calves acquired during the income year:

(e) Weaner pigs to 10 weeks of age (excluding sucklings):

(f) Growing pigs from 10 to 17 weeks of age,— the respective production costs, based on national average costs of production, declared by the Governor-General by Order in Council under section 86C of the Act:

“Non-breeding” means, in respect of a taxpayer, livestock not used or intended to be used for breeding purposes by the taxpayer:

“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 previously required to be valued under the national standard cost scheme, the national average market value for the current income year 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.

(e) Includes transfers between separate accounting entities operated by the same taxpayer at the cost included in the financial accounts for income tax purposes as outlined in paragraph 1(c) of this determination.

“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 of livestock calculated in accordance with section 86B of the Act.

Cattle breeds for NSC purposes

Dairy cattle breeds which are not bred as part of a dairy farming business (for example, if they are bred on a sheep or beef cattle farm) may be valued under the NSC for beef cattle breeds. In all other cases, the NSC applies directly to the breed concerned.

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.