Tax Alert - July 2013
Tax Alert is a monthly publication that keeps you up to date with the latest developments in tax. The alert is compiled by our national tax specialists who are continually monitoring the outlook for new tax developments and analysing the implications for our clients.
A taxing holiday: mixed-use assets update
The long weekend away at your mixed-use holiday home may no longer be as relaxing as it once was with the proposed mixed-use assets rules being one step closer to law. The pain might be even worse if there is a mixed-use boat moored there or if you jetted there on a mixed-use aircraft.
Under the soon to be “old” rules, current practice is for taxpayers to claim deductions for expenses incurred in relation to assets which are used for both a private and business purpose for the periods when the assets are available for the income earning activity, regardless of whether they are actually used. This has meant that significant deductions are claimed for expenses in relation to assets that are mainly used for private purposes, which has spurred the Government into action to make a change.
The “new” rules move away from the available for income earning activity concept. Instead deductions will be based on how much the asset was used to earn income relative to total days used.
Also in this issue:
- Thin capitalisation proposals. It ain’t law yet – thankfully
- Deloitte Private: Putting the Customer First
- Proposed GST changes a step closer to enactment
- Exporting goods to related parties in Australia? Be aware of changes to the approach by The Australian Customs and Border Protection Service
- Further accolades for Deloitte’s New Zealand tax team
- September tax bill reported back