New Zealand

Details

  • Service: Tax
  • Type: Business and industry issue
  • Date: 19/04/2010

Contact us

Paul Dunne
Partner - Tax
KPMG
Phone: +64 9 367 5991

pfdunne@kpmg.co.nz 

 

John Cantin
Partner - Tax
KPMG
Phone: +64 4 816 4518

jfcantin@kpmg.co.nz

Tax

Our tax advisory team has the skills and commitment to help you to be competitive and compliant in all areas of business tax.

Submission – IRD interpretation: deductibility of expenditure incurred in borrowing money 

While KPMG strongly support Inland Revenue providing further clarity on this area of tax law, we are concerned with aspects of their analysis.

taxmail expenditure deductability incurred from borrowing
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In particular, we consider the proposed interpretation of expenditure incurred “in borrowing money” is too narrow and will result in an unreasonable reduction in the type of costs that should be deductible under section DB 5 of the Income Tax Act 2007.

 

We also do not agree with the analysis around the deductibility of premiums on life insurance policies used as security for borrowing purposes (which under Inland Revenue’s view in the statement are non-deductible). 

 

If you have any questions on the above, please speak to your usual KPMG advisor, or contact Paul Dunne or John Cantin.

Tax submissions - Submissions on draft tax legislation, Government discussion documents and issues papers, & various tax interpretation statements released by the New Zealand Inland Revenue. 
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