Draft general depreciation determination - exposure draft

In Tax Information Bulletin Volume 18, No 7 (August 2006) on page 4 we advised of the availability of a draft general depreciation determination - Exposure Draft DDG0112 ('DDG0112') for comment. DDG0112 proposed the setting of general depreciation rates for the following asset classes:

• CCH Electronic New Zealand Master Tax Guide, designed for a specific tax year.
• CCH Electronic New Zealand Essential Tax Package, designed for a specific tax year.

DDG0112 if issued would have replaced Determination PROV4: Tax Depreciation Rates Provisional Determination Number 4 ('Prov4'), which was issued on 7 September 1995 and published in Tax Information Bulletin Volume 7, No 3 (September 1995). Prov 4 set the provisional depreciation rates for the two CCH products listed above.

As a result of comments received on DDG0112, the Commissioner is now aware that the two CCH products are no longer available in the form described in DDG0112 and Prov4. Consequently the Commissioner does not intend to proceed with finalising DDG0112.

In addition, as there are no longer any depreciable property to which Prov4 applies, Prov4 has no on-going application.