21 APRIL
NEW ZEALAND GAZETTE
1395

where—
a is the number of rising two year male non-breeding dairy cattle of the taxpayer on hand at the end of the immediately preceding income year;
b is the national standard cost for the income year of rising three year male non-breeding beef cattle;
c is the aggregate purchase cost of male non-breeding dairy cattle purchased during the income year by the taxpayer which are, or would have been if still on hand, rising three year or older male non-breeding dairy cattle of the taxpayer at the end of that income year;
d is the aggregate value, for income tax purposes at the end of the immediately preceding income year, of rising two year male non-breeding dairy cattle of the taxpayer on hand at the end of the immediately preceding income year; and
e is the number of male non-breeding dairy cattle purchased during the income year by the taxpayer which are, or would have been if still on hand, rising three year or older male non-breeding dairy cattle of the taxpayer at the end of that income year.

Rising three year or older male non-breeding beef cattle
In respect of the beef cattle livestock type, the livestock intake of a taxpayer, being rising three year or older male non-breeding beef 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:

$$
\frac{(a \times b) + c + d}{a + e}
$$

where—
a is the number of rising two year male non-breeding beef cattle of the taxpayer on hand at the end of the immediately preceding income year;
b is the national standard cost for the income year of rising three year male non-breeding beef cattle;
c is the aggregate purchase cost of male non-breeding beef cattle purchased during the income year by the taxpayer which are, or would have been if still on hand, rising three year or older male non-breeding beef cattle of the taxpayer at the end of that income year;
d is the aggregate value, for income tax purposes at the end of the immediately preceding income year, of rising two year male non-breeding beef cattle of the taxpayer on hand at the end of the immediately preceding income year; and
e is the number of male non-breeding beef cattle purchased during the income year by the taxpayer which are, or would have been if still on hand, rising three or older male non-breeding beef cattle of the taxpayer at the end of that income year.

7. Valuation of pigs
   Pigs valued in the weaners to 10 weeks of age category of livestock (excluding suckling pigs).

Pigs, on hand at the end of an income year, which are weaners to 10 weeks of age (excluding suckling pigs) shall be valued at the national standard cost for the income year for this category of livestock.

Pigs valued in the growing pigs 10 weeks to 17 weeks of age category of livestock.

Pigs on hand at the end of an income year which are growing pigs 10 weeks to 17 weeks of age or pigs which are grown on to an older age (including the purchase of pigs intended for breeding purposes) 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:

$$
\frac{((a - b - c) \times d) + ((a - c) \times e) + f}{a - b - c + g}
$$

where—
a is the number of growing pigs which at any time during the income year were aged between 10 and 17 weeks of age and which were sold during the income year or are on hand at the end of that income year;
b is the number of weaned pigs purchased by the taxpayer during the income year for the purposes of rearing to about 17 weeks of age or older;
c is the number of pigs on hand at the beginning of the income year which were valued as growing pigs 10 to 17 weeks of age;
d is the national standard cost for the income year for pigs in the weaners to 10 weeks of age category of livestock;
e is the national standard cost for the income year for pigs in the growing pigs 10 to 17 weeks of age category of livestock;
f is the aggregate purchase cost of pigs purchased at the age of weaning or older during the income year excluding boars to be valued under the herd scheme by the taxpayer;
g is the total number of pigs purchased by the taxpayer at the age of weaning or older during the income year excluding boars to be valued under the herd scheme.

Provisions which apply to Paragraphs 3 to 7 of this Determination

8. Treatment of high-priced livestock transferred from high-priced livestock scheme to national standard cost scheme
   Where any high-priced livestock was valued under the high-priced scheme in the preceding income year and is required under section 86i of the Act to be valued under the national standard cost scheme in the current income year, that livestock shall be treated under this determination as livestock purchased at the national average market value for the preceding income year.

9. Exclusion of certain livestock from livestock cost calculations

Exclusion of breeding sires where the herd scheme is being used in conjunction with national standard cost

Where the herd scheme has been adopted for a particular livestock type and the taxpayer is using that scheme to value any livestock of that type, the purchase cost of breeding sires of that livestock type and the number purchased during the income year must be excluded from the calculation of average cost of the taxpayer’s livestock of the type under the national standard cost scheme. In any case where a taxpayer commences to use the herd scheme in conjunction with the national standard cost scheme, no adjustment to the calculation of average costs under the national standard cost scheme shall be made in respect of breeding sires purchased in earlier income years.

Exclusion of high-priced livestock

Any animals purchased during the income year which must be valued under the provisions of section 86i of the Act as high-priced livestock at the end of the income year must be excluded from the calculation of average cost under the national standard cost scheme with regard to both the number and cost of animals purchased.

10. Establishment Of NSC Where Calculation Of NSC Using Any Of Paragraphs 3 To 7 Produces Nil Values
    In the event of any of the formulas in paragraphs 3 to 7 of this determination producing an average value at the end of an income year of nil, the average value shall be deemed to be, in the case of:

• a rising one year class of livestock, the national standard