Jurisdiction - New Zealand
New Zealand – Proposals To Limit Deductions On “Mixed-Use Assets”.

29 September, 2012


Legal News & Analysis – Asia Pacific – New ZealandTax


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.


To view the full report, please click here.



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