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11.4 Taxation
Authors: Howard MoorePublication: NZIF Forestry Handbook, Volume Section 11 – Forestry business and investment, pp 4, Dec 2023
Publisher: New Zealand Institute of Forestry
Abstract: As at 1 August 2020 there were 3,667 pages in the Income Tax Act 2007 and it keeps on getting longer. Happily most of the recent changes don’t affect forestry, which has had a stable tax regime for nearly 30 years. Carbon credits are new, but the rest is now pretty well established. Summary There are three kinds of forestry expenditure: (a) Costs that are deductible against current revenue (revenue expenditure) (b) Costs that are deductible against future revenue (cost of standing timber) (c) Costs that are not deductible at all, but can be depreciated (capital expenditure). Section DP 1 of the Act tells you what is deductible: