NZTCRA finds work to convert retail space to office space in commercial building was capital in nature
The Taxation and Charities Review Authority (NZTCRA) found in favour of the Commissioner, confirming assessments made in relation to the income tax years ending 31 March 2017 to 2019. The assessments disallowed deductions for construction and finishing work on a commercial property on the basis the payments were capital in nature. The NZTCRA found the evidence supported the Commissioner’s position that the work was capital in nature and upheld the Commissioner’s assessments.
Case
P Ltd v CIR [2025] NZTRA 03
Legal terms
Deductible expenditure, Capital limitation, Repairs and maintenance, Change in character, Renewal of substantially the whole
Income Tax Act 2007 (ITA), ss DA1(1), DA2(1), DB22B.