The Issues Log

Section / Provision Income Tax Act 2004

CB 14(2)

Date Received

Section CD 1(3)(b) of the ITA1994 excluded:
"Any land, being a dwellinghouse."
Section CB 14(2) of the ITA2004 states the exclusion applies to:
".the land that has the dwellinghouse on it."
In CD 1(3)(b) of the ITA1994 it was clear the land that was excluded was only the dwellinghouse itself.  However, it is unclear if CB 14(2) restricts the exclusion to the dwellinghouse only as it refers to "the land that has the dwellinghouse on it".  Does this now mean that the exclusion will apply to the dwellinghouse, or the dwellinghouse and cartilage, or the dwellinghouse and the land in the certificate of title on which the dwellinghouse is situated.

CD 1(3)(b)

The Panel considers there is no unintended legislative change in this instance. However, the Panel recommended that the legislation would benefit from clarification and the submission has been referred to Inland Revenue's Policy Advice Division.