IS 20/08
Issued
13 Aug 2020

Income tax - when is development or division work "minor"?

This interpretation statement provides guidance on whether development or division work undertaken on land is minor, such that the amount the taxpayer receives from the disposal of the land will not be subject to tax under s CB 12 of the Income Tax Act 2007.

Tax Information Bulletin Vol 32 No 9 - October 2020

Goods and Services Tax Act 1985
Income Tax Act 1976, s 67(4)
Income Tax Act 1994, s CD 1(2)(f), YB 4(3)
Income Tax Act 2004, s CB 10, YA 3(3) and (4)
Income Tax Act 2007, subpart CB (ss CB 6, CB 6A, CB 7–CB 14, CB 15, CB 17–CB 23, CB 23B), s CC 1, YA 1 (“dispose”, “land”), ZA 3
Land and Income Tax Act 1954, s 88AA
Land and Income Tax Amendment Act 1973, s 9(1)
Resource Management Act 1991, s (2)(c)
Unit Titles Act 1972

Anzamco Ltd (in liq) v CIR (1983) 6 NZTC 61,522 (HC)
Aubrey v CIR (1984) 6 NZTC 61,765 (HC)
Case D24 (1979) 4 NZTC 60,597
Case E41 (1982) 5 NZTC 59,255
Case E90 (1982) 5 NZTC 59,471
Case N59 (1991) 13 NZTC 3,457
Case P61 (1992) 14 NZTC 4,416
Case R7 (1994) 16 NZTC 6,035
Case S86 (1996) 17 NZTC 7,538
Costello v CIR (1993) 15 NZTC 10,285 (HC)
Costello v CIR (1994) 16 NZTC 11,253 (CA)
Cross v CIR (1985) 7 NZTC 5,054 (HC)
Cross v CIR (1987) 9 NZTC 6,101(CA)
Duff v CIR (1982) 5 NZTC 61,131 (CA)
Dobson v CIR (1987) 9 NZTC 6,025 (HC)
K v CIR (1991) 13 NZTC 8,216 (HC)
Lowe v CIR (1981) 5 NZTC 61,006 (CA)
Mee v CIR (1988) 10 NZTC 5,073 (HC)
O’Toole v CIR (1985) 7 NZTC 5,045 (HC)
Smith v CIR (No 2) (1989) 11 NZTC 6,018 (CA)
Vuleta v CIR [1962] NZLR 325 (SC)
Wellington v CIR (1981) 5 NZTC 61,101 (HC)