Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Budget provides relief to certain ‘black hole’ expenditure

Description: Description: DEL_COL

Media release

16 May 2013

Budget provides tax relief to certain ‘black hole’ expenditure

Long overdue but still welcome

It is refreshing to see the Government move to deal with a number of categories of much-maligned “black hole expenditure,” says Deloitte CEO Thomas Pippos.

The term is used to describe a business expense for which no tax deduction is available, and has been a sore point for many businesses over time in various fact situations. The measures announced today propose to remove black hole expenditure in certain instances including:

· Immediate deductibility for capitalised expenditure on legal and administrative fees incurred in applying for a patent or plant variety rights, but where no depreciable asset is recognised for tax purposes.

· Making certain fixed-life resource consents granted under the Resource Management Act 1991 depreciable for tax purposes.

· Making expenditure immediately tax deductible if it is incurred on resource consent applications that are abandoned, rather than requiring the application to be lodged in order for the expenditure to be tax deductible.

· Immediate deductibility for all direct costs associated with the payment of dividends by a company to shareholders.

· Immediate deductibility of annual fees for listing on a stock exchange, and clarification that the initial costs of listing and costs of additional share issues are not tax deductible.

· Specifying that annual shareholder-meeting costs are immediately tax deductible, and special shareholder meeting costs are non-deductible.

“The amount at stake is often immaterial in any global sense with the irritant and equity factor far exceeding the dollar amounts involved,” says Mr Pippos.

“Possibly the most positive outcome is that it evidences that officials have constructively listened to the concerns of the private sector and removed a number of irritants and anomalies in the current rules which reinforces the importance of constructive dialog in the development of tax policy,” concludes Mr Pippos.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Zimbabwe: New Democracy, Or A False Dawn?

Gordon Campbell: Robert Mugabe = Hosni Mubarak. The current jubilation on the streets of Harare at the fall of Zimbabwe’s dictator Robert Mugabe is genuine, and one hates to be negative about the country’s future. Yet the situation is eerily similar to the scenes in Cairo in early 2011, when a popular uprising swept Hosni Mubarak from power in Egypt. More>>


Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them. More>>


Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>


Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. More>>


Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>


Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>





Featured InfoPages

Opening the Election