Description
Gain clarity on one of tax’s toughest grey areas. Join us for a focused walkthrough of the key judicial tests that separate capital from revenue expenditure—plus practical insights on how they apply to common business costs
Distinguishing non-deductible capital expenditure from deductible revenue expenditure can be difficult and can lead to uncertainty over whether an expense is deductible. While the distinction between capital expenditure and revenue expenditure is central to determining deductibility for many provisions in the Income Tax Act 2007, the Act is silent as to how to distinguish one from the other. That job has been left to the courts, which over the course of many years and numerous cases have formulated several tests for whether an expenditure is capital or revenue in nature. In this webinar we will focus on clarifying the general principles and tests the courts have formulated. In addition, we will consider some specific types of expenses and how the capital-revenue distinction applies to them.
In this webinar we will cover:
- General principles of Capital/Revenue Distinction
- General rules for deductibility
- The key principles
- The six key tests
- Some specific expenses
- Business Relocation Costs
- Interest
- Legal Fees
- Software Cost
LEARNING OUTCOMES
Upon satisfactory completion of this webinar, you will:
- Have a better understanding of the key tests developed by the courts to distinguish a capital expense from a revenue expenses
- Better able to apply those tests to expenditure incurred by clients to determine whether their expenditure is of a capital nature and non-deductible
SUITED TO
This course will be suited to intermediate through to advanced accountants in public practice and is also suitable for corporate accountants.
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PRESENTER
Stephen Richards, Partner - Tax Advisory, Findex NZ (presenting on behalf of TEO)
Stephen Richards is Partner in the Tax Advisory team at Findex. Findex is one of the largest providers of integrated financial advisory and accounting services to individuals, SMEs, and corporates in Australasia.
Stephen has been practising in tax advisory for over 25 years and is a sought-after speaker on tax topics, including for CCH, CAANZ, and TEO Training courses and lecturing in taxation practice at the University of Otago.