Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/13/2012

New Zealand - Proposals to limit deductions on “mixed-use assets” 

September 13:  The New Zealand government today introduced a bill that would tighten the deductibility rules for “mixed-use assets” (i.e., assets used for both private and income-earning purposes).

Under the legislation—Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Bill—certain deductions would need to be apportioned based on the ratio of income-earning use to private use of the mixed-use asset.


Other changes include amendments to the livestock valuation regime, various goods and services tax (GST) changes, and miscellaneous remedial items.

KPMG observation

While a broad outline of the changes to the mixed-use rules were announced earlier this year, the draft legislation does not contain “fish hooks”—such as a proposed interest apportionment rule when a mixed-use asset is held through a close company.


Read a September 2012 report [PDF 85 KB] prepared by the KPMG member firm in New Zealand: September Tax Bill Introduced




©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to go-fmtaxnewsflash@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now

Contact us