The Issues Log

Issue: CB 9(1)(b)

Submission Number	014
Submitter:	Carolyn Willoughby, Proactive Accounting Ltd
Section / Provision Income Tax Act 2004	CB 9(1)(b)
Date Received	20/04/05
Description of issue	Under the 1994 Act (CD1(2)(d)), the test of whether or not a person is in business as a builder is applied at the time the land was acquired. Under the 2004 Act (CB9(a)(b)), the test of whether the person is in business as a builder is applied at the time they began improvements to the land. This is not listed as an intended policy change at Sch 22 of the 2004 Act. There could be a significant gap between when someone acquires land and when they commence improvements to it.
Section / Provision Income Tax Act 1994	CD 1(2)(d)
Status	Finalised
Outcome	• The Panel concluded that there is a legislative change in respect of section CB 9(1)(b) arising from an intended policy change. • The Panel recommended that Schedule 22A be amended to reflect this as an intentional policy change.