NZTCRA finds remediation work on unit was capital in nature
The Taxation and Charities Review Authority (NZTCRA) confirmed the Commissioner’s assessments for the income tax years ending 31 March 2015 and 2017 disallowing deductions claimed for remedial work undertaken on the disputant’s unit. The remedial work to fix weathertightness issues changed the character of the asset and was capital in nature.
Case
P v Commissioner of Inland Revenue [2025] NZTRA 04
Legal terms
Deductible expenditure, Capital limitation, Weathertightness, Repairs and maintenance, Change in character, One project
Income Tax Act 2007, ss DA1(1), DA2(1)
Tax Administration Act 1994, s138P