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New Zealand Tax Agency Issues Technical Decision Clarifying Tax Deductibility of Depreciation, Expenses, Legal Fees

Aug. 5, 2022, 5:00 AM

The New Zealand Inland Revenue Aug. 3 issued Technical Decision Summary No. 22/15, clarifying the tax deductibility of depreciation, expenses, and legal fees incurred on taxpayer-owned property. A taxpayer sought to deduct the depreciation and expenses incurred on its properties (one of which was purchased as a going concern), and the legal fees which the taxpayer had incurred due to an ongoing dispute with the Customer and Compliance Services group (CCS). The tax counsel held that: 1) the taxpayer can’t deduct any depreciation or expenses on its going concern property because he couldn’t prove that the property was an income ...