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This determination may be cited as "Determination DET EE-11/02: Declaration of the Canterbury Earthquake of 22 February 2011 as an emergency event for the purposes of family scheme income".
This determination is signed on the 26th day of May 2011.
LTS Manager, Technical Standards
This commentary does not form part of the Determination. It is intended to provide assistance in the understanding and application of the Determination.
Section 91AAS of the Tax Administration Act 1994 provides the Commissioner the power to issue a determination declaring an event as an emergency event for the purposes of section MB 13(2)(r)(i) of the Income Tax Act 2007.
In setting this determination, the Commissioner must set a period relating to the event for the purposes of section MB 13(2)(r)(ii) of the Income Tax Act 2007 up to a maximum period of 12 months from the date of the event.
Section MB 13(1) of the Income Tax Act 2007 includes in the family scheme income (which is used in the calculation of a person's Working for Families Tax Credit entitlement) of a person the value of payments paid to the person used to replace lost or diminished income or used to meet usual living expenses.
Section MB 13(2) of the Income Tax Act 2007 excludes certain payments from being included in family scheme income under section MB 13(1). Section MB 13(2)(r) excludes from family scheme income a payment made to relieve the adverse effects of an event declared an emergency event by the Commissioner by way of determination under section 91AAS of the Tax Administration Act 1994 where the payment is made in the time period set by the Commissioner in the determination.
This determination declares the earthquake that occurred in Canterbury on 22 February 2011 as an emergency event and sets a 12 month time period for the purposes of section MB 13(2)(r) from 22 February 2011 to 21 February 2012.
Section MB 13(2)(r) came into force 1 April 2011 which is the day section MB 13(1) came into force. Therefore a payment made between 1 April 2011 and 21 February 2012 (inclusive of both dates) to relieve the adverse effects of the Canterbury earthquake of 22 February 2011 will not be included in a person's family scheme income under section MB 13(1).