Demolition work on Christchurch's "distinctive" former civic building and the Front Runner store. On a walk around Christchurch May 9, 2013 New Zealand. Demolition work on Christchurch's "distinctive" former civic building is under way. The category-2 heritage building was designed by G A J Hart and opened in 1939 as the Miller's department s...
On a walk around the city to catch up on what is happening May 29, 2014 Christchurch New Zealand. Demolition work on Christchurch's "distinctive" former civic building is under way. The category-2 heritage building was designed by G A J Hart and opened in 1939 as the Miller's department store. It featured the South Island's first escalator, w...
Earthquake damaged building on a Walk around the city, May 1, 2014 Christchurch New Zealand. Demolition work on Christchurch's "distinctive" former civic building is under way. The category-2 heritage building was designed by G A J Hart and opened in 1939 as the Miller's department store. It featured the South Island's first escalator, which...
Earthquake damaged building on a Walk around the city, May 1, 2014 Christchurch New Zealand. Demolition work on Christchurch's "distinctive" former civic building is under way. The category-2 heritage building was designed by G A J Hart and opened in 1939 as the Miller's department store. It featured the South Island's first escalator, which...
The Canterbury earthquakes of 2010 and 2011 have shone the spotlight on a number of tax issues. These issues, and in particular lessons learned from them, will be relevant for revenue authorities, policymakers and taxpayers alike in the broader context of natural disasters. Issues considered by this paper include the tax treatment of insurance monies. For example, building owners will receive pay-outs for destroyed assets and buildings which have been depreciated. Where the insurance payment is more than the adjusted tax value, there will be a taxable "gain on sale" (or depreciation recovery income). If the building owner uses those insurance proceeds to purchase a replacement asset, legislative amendments specifically enacted following the earthquakes provide that rollover relief of the depreciation recovery income is available. The tax treatment of expenditure to seismically strengthen a building is another significant issue faced by building owners. Case law has determined that this expenditure will usually be capital expenditure. In the past such costs could be capitalised to the building and depreciated accordingly. However, since the 2011-2012 income year owners have been prohibited from claiming depreciation on buildings and therefore currently no deduction is available for such strengthening expenditure (whether immediate or deferred). This has significant potential implications for landlords throughout New Zealand facing significant seismic retrofit costs. Incentives, or some form of financial support, whether delivered through the tax system or some other mechanism may be required. International Financial Reporting Standards (IFRS) require insurance proceeds, including reimbursement for expenditure of a capital nature, be reported as income while expenditure itself is not recorded as a current period expense. This has the effect of overstating current income and creating a larger variation between reported income for accounting and taxation purposes. Businesses have obligations to maintain certain business records for tax purposes. Reconstructing records destroyed by a natural disaster depends on how the information was originally stored. The earthquakes have demonstrated the benefits of ‘off-site’ (outside Canterbury) storage, in particular electronic storage. This paper considers these issues and the Inland Revenue Department (Inland Revenue) Standard Practice Statement which deals with inter alia retention of business records in electronic format and offshore record storage. Employer provided accommodation is treated as income to the benefitting employee. A recent amendment to the Income Tax Act 2007 retrospectively provides that certain employer provided accommodation is exempt from tax. The time aspect of these rules is extended where the employee is involved in the Canterbury rebuild and comes from outside the region.