NEW ZEALAND GAZETTE, No. 31 12 MARCH 2009

(b) if the expenditure relates to payment for, or in relation to, a chose in action:

(i) for a definite period, the last day of the period; or

(ii) for an indefinite period, the day on which it is reasonably expected that the period will end

financial statement, in relation to a person:

(a) means, subject to paragraph (b),:

(i) a balance sheet;

(ii) a profit and loss account;

(iii) group accounts;

(iv) a financial statement within the meaning of that term in section 8 of the Financial Reporting Act 1993;

(v) a group financial statement within the meaning of that term in section 9 of the Financial Reporting Act 1993;

(vi) a supporting note or statement that accompanies the financial statement;

(b) does not include:

(i) a statement of production quality or production volume;

(ii) a statement prepared in relation to the exercise of any rights in respect of which royalties are payable

mandatory accounting costs, in relation to a person and an income year (the “reported year”), means expenditure incurred by the person for the purpose of meeting any requirement imposed on the person by operation of law to provide accounting, statistical, operational, sociological, or other information in respect of:

(a) events occurring in the reported year;

(b) a state of affairs in the reported year;

(c) events occurring in, or a state of affairs in, the income year that immediately follows the reported year, if the events or state of affairs are required to be reported in the financial statements for the reported year

periodic charges means expenditure regularly incurred on a rated annual or more frequent basis, and includes local authority levies other than rates, licences, and registrations

qualified person means:

(a) a person qualified for appointment as an auditor of a company in terms of section 165 of the Companies Act 1955 or section 199 of the Companies Act 1993;

(b) a person similarly qualified, according to the law in any other jurisdiction, for appointment as an auditor of a body corporate.

4. Determination

A person who, for an income year to which this determination applies, is allowed a deduction for an expenditure is excused from complying with section EA 3 of the Income Tax Act 2007 in respect of the expenditure and the income year to the extent to which:

(a) the expenditure is described by a row in column 1 of the Schedule; and

(b) the unexpired portion of the expenditure and the unexpired portions of all other expenditures also described by the row do not, in total, exceed the maximum total amount specified in column 2 of the relevant row of the Schedule; and

(c) the length of time between the balance date for the income year and the subsequent expiry date of the expenditure does not exceed the time period specified in column 3 of the relevant row of the Schedule; and

(d) in relation to expenditure on goods specified in column 1 of rows (d) and (k) of the Schedule, the goods are in the possession of the person at balance date; and

(e) the deduction of the expenditure has not been deferred to a subsequent income year for financial reporting purposes.

5. Expenditure incurred by partnership

For the purpose of applying this determination to partners and partnerships, section HG 2 of the Income Tax Act 2007 must be ignored, and expenditure must be treated as incurred by the partnership and not by the partners.

Schedule