Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Blackhole expenditure relief

Thursday 16 May 2013

News Release

Blackhole expenditure relief

In the Budget today, the Government announced its intention to provide tax deductions for six types of expenditure that previously fell in a tax ‘blackhole’ - that is the costs were not deducible upfront or depreciable over time.

The blackhole expenditure that will now be deductible either upfront or over time includes:
· legal and administrative costs relating to patents and plant variety rights
· costs of obtaining certain fixed life resource consents
· the costs of abandoned resource consents
· the costs of paying dividends (but not the dividends themselves)
· certain costs of running a public company including annual listing and meeting fees.

Many taxpayers may be unaware that some of these costs were not already deductible and will need to review their position.

The Government has been lobbied by business for solutions to blackhole expenditures for many years and this response, albeit very limited, will be welcomed.

The new rules will apply from 2014/15.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>