14Annual rate for registered clubs

#### 14 Annual rate for registered clubs 14 Annual rate for registered clubs > > (1) If the profits from all gaming machines kept on the premises of a registered club in a tax year do not exceed $200,000, no tax is payable on the profits. > > > (2) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $200,000, but do not exceed $1,000,000, the following provisions apply— > > > > > (a) in the 2006 tax year—tax is payable on so much of those profits as exceeds $200,000 at the rate of tax rate 1 for the tax year, > > > > > (b) in the 2007 tax year and subsequent tax years—no tax is payable on the profits. > > > (3) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $1,000,000, but do not exceed $1,800,000, the following provisions apply— > > > > > (a) in the 2006 tax year—tax is payable on $800,000 of those profits at the rate of tax rate 1 for the tax year, and on so much of those profits as exceeds $1,000,000 at the rate of tax rate 2 for the tax year, > > > > > (b) in the 2007 tax year and subsequent tax years, tax is payable— > > > > > > > (i) on the taxable component of the first $1,000,000 of those profits at the rate of tax rate 1 for the tax year, and > > > > > > > (ii) on so much of those profits as exceeds $1,000,000 at the rate of tax rate 2 for the tax year. > > > (4) For the purposes of subsection (3), the taxable component of the first $1,000,000 of the profits of a registered club from gaming machines kept on the premises of the club is $1 for every $1 by which profits from all gaming machines kept on the premises of the registered club in the tax year exceeds $1,000,000. > > > > Note— > > > > The taxable component of the first $1,000,000 of the profits of the registered club from gaming machines will vary from $1 (for a club that has profits of $1,000,001) to $800,000 (for a club that has profits of $1,800,000). The first $200,000 of profits is always tax free. > > > > **Example.** If the profits of a club from all gaming machines kept on the premises is $1,200,000, the taxable component of the first $1,000,000 of the profits is $200,000. Accordingly tax is payable on $200,000 of the first $1,000,000 of those profits at tax rate 1 and on the profits that exceed $1,000,000 (ie $200,000) at tax rate 2. > > > (5) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $1,800,000, but do not exceed $5,000,000, tax is payable— > > > > > (a) on $800,000 of those profits at the rate of tax rate 1 for the tax year, and > > > > > (b) on so much of those profits as exceeds $1,000,000 at the rate of tax rate 2 for the tax year. > > > (6) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $5,000,000, but do not exceed $10,000,000, tax is payable— > > > > > (a) on $800,000 of those profits at the rate of tax rate 1 for the tax year, and > > > > > (b) on $4,000,000 of those profits at the rate of tax rate 2 for the tax year, and > > > > > (c) on so much of those profits as exceeds $5,000,000 at the rate of tax rate 3 for the tax year. > > > (7) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $10,000,000, but do not exceed $20,000,000, tax is payable— > > > > > (a) on $800,000 of those profits at the rate of tax rate 1 for the tax year, and > > > > > (b) on $4,000,000 of those profits at the rate of tax rate 2 for the tax year, and > > > > > (c) on $5,000,000 of those profits at the rate of tax rate 3 for the tax year, and > > > > > (d) on so much of those profits as exceeds $10,000,000 at the rate of tax rate 4 for the tax year. > > > (8) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $20,000,000, tax is payable— > > > > > (a) on $800,000 of those profits at the rate of tax rate 1 for the tax year, and > > > > > (b) on $4,000,000 of those profits at the rate of tax rate 2 for the tax year, and > > > > > (c) on $5,000,000 of those profits at the rate of tax rate 3 for the tax year, and > > > > > (d) on $10,000,000 of those profits at the rate of tax rate 4 for the tax year, and > > > > > (e) on so much of those profits as exceeds $20,000,000 at the rate of tax rate 5 for the tax year. > > > (9) This section is subject to Part 4. > > **s 14:** Subst 2003 No 34, Sch 2 \[4\]; 2006 No 50, Sch 1 \[1\]. Am 2006 No 87, Sch 3.1.