The name of the regular instalment payments by investors, required to meet their share of the annual budget for forest management and other services. The term also covers other contributions investors must make for the development and management of the investment which is prudent or necessary. The largest amount of funding is required in Year One in order to buy the land and establish the treecrop. Lesser amounts are required from Year 2 through to about Year 9 to complete the pruning and thinning operations, to repay any initial mortgage borrowings and to pay the annual charges such as rates, insurance, maintenance and management. From about Year 10, the annual Call is required to cover the ongoing annual charges and is, therefore, a smaller charge.

Cost of Timber is a technical area of New Zealand Tax law relating to deductions for certain forestry expenditure. The main purpose of section DP 11 of the Income Tax Act 2007 is to allow a deduction for certain forestry expenditure that might not otherwise be deductible. A vendor is entitled to deduct the ‘cost of timber’ from the proceeds realised from the sale of such timber. The cost of timber includes the purchase price of the timber where it is purchased as standing timber, or the acquisition cost of a right to take timber. For more information and advice, consult your tax or accounting adviser.

FAQs Archive | Page 4 of 12 | Forestenterprises.co.nz

Assignee

By Nicola Black|2017-07-21T12:10:03+12:00May 25th, 2016|Investment, Glossary|

The buyer or transferee of shares in a managed investment scheme.

Assignor

By Nicola Black|2017-07-21T12:10:37+12:00May 25th, 2016|Investment, Glossary|

The seller or transferor of shares in a managed investment scheme.

Balance Date

By Nicola Black|2017-07-27T15:34:18+12:00May 25th, 2016|Investment, Glossary|

The financial year-end balance date. For a Forest Enterprises investment this is either 31 December, 31 March, 30 June or 30 September.

Blanking

By wp-admin|2022-04-11T09:49:17+12:00March 7th, 2016|Forestry, Glossary|

Replanting areas of dead or damaged trees to maintain target stocking rates, normally undertaken the winter following the planting of a stand.

Butt Log

By wp-admin|2017-07-07T08:37:24+12:00March 7th, 2016|Forestry, Glossary|

The bottom part of a tree. A 'Peeler Butt' is the pruned bottom part of the tree, around 2m in length, used by mills to make veneer.

Call

By wp-admin|2019-10-22T15:14:29+13:00March 7th, 2016|Glossary, Investment|

The name of the regular instalment payments by investors, required to meet their share of the annual budget for forest management and other services. The term also covers other contributions investors must make for the development and management of the investment which is prudent or necessary. The largest amount of funding is required in Year One in order to [...]

Carbon Lease

By Nicola Black|2017-07-20T17:03:16+12:00May 25th, 2016|Investment, Glossary|

All of the Post-1989 forests promoted by Forest Enterprises have entered into a into a commercial arrangement with a company called New Zealand Forest Leasing Ltd (NZFL), resulting in the carbon in the Post-1989 areas of the forest being leased to New Zealand Carbon Leasing (No. 1) Limited, a subsidiary of NZFL, in return for [...]

Clearfell

By wp-admin|2019-10-22T15:14:29+13:00March 7th, 2016|Glossary|

Harvesting a tree crop by removing all merchantable wood from the site.

Clearwood

By wp-admin|2022-10-20T13:59:24+13:00March 7th, 2016|Forestry, Glossary|

Wood which is free of knots and other defects. In Radiata pine this is grown on the butt log, being the pruned part of each tree (bottom 5+ metres approx). Knot-free Radiata pine is highly sought after and therefore the most valuable portion of each tree as the wood is used for decorative, furnishing and [...]

Cost of Timber

By Nicola Black|2019-10-22T15:14:26+13:00July 30th, 2018|Investment, Legal, Glossary|

Cost of Timber is a technical area of New Zealand Tax law relating to deductions for certain forestry expenditure. The main purpose of section DP 11 of the Income Tax Act 2007 is to allow a deduction for certain forestry expenditure that might not otherwise be deductible. A vendor is entitled to deduct the ‘cost [...]