High Court concludes Taxation & Charities Review Authority was correct in finding work done on commercial building was capital in nature

Podium Investments Ltd (Podium) sought to deduct approximately $460,000 of seismic strengthening expenditure and $1.5 million of ground-floor glass façade expenditure incurred as part of a major refurbishment of a commercial building, located in Hamilton. The High Court dismissed Podium’s appeal of the Taxation & Charities Review Authority (TCRA) decision which found in in favour of the Commissioner, holding that both categories of expenditure were capital in nature because they formed an integral part of a wider project that transformed a seismically sub-standard retail building into a modern, compliant office building.  The High Court also found that on a standalone basis, the works independently resulted in significant improvements to the building’s character, functionality and value.