Many of you will have experienced the IRD’s hard line when it comes deductions for “repairs” to so-called leaky buildings. Despite what is said in public policy statements, IRD’s current practice is to simply disallow deductions on the basis they are capital in nature. They are generally not interested in entering into any discussion around the issues, instead suggesting taxpayers enter into the formal disputes process and risk penalties if they are wrong. nsaTax is actively involved in a number of leaky building disputes and are unconvinced by IRD’s approach. However, the current ad hoc uncoordinated approach by taxpayers suits IRD’s tactics perfectly.
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