Tax Incentive Needed in Christchurch
June 1, 2012 New Zealand Taxation
The head of one of New Zealand’s most prominent property development firms has come forward and called for the government to implement tax incentives for earthquake rebuild work.
While speaking at a conference in Christchurch this week, the chief executive of Kiwi Income Property Trust Chris Gudgeon said New Zealand’s current tax system is a disincentive for rebuilding the earthquake stricken city of Christchurch.
According to Chris Gudgeon the government should consider offering tax incentives for property developers and home owners looking to rebuild earthquake dodged homes or carry out earthquake-strengthening work.
He claimed that recently the countries of Chile, Japan, and the state of California all offered tax incentives to encourage local taxpayers to invest into rebuilding projects. However, Chris Gudgeon says that New Zealand has not offered adequate financial assistance packages for quake victims or tax concessions for construction activity.
Elaborating further, Chris Gudgeon also said that in some instances the tax system actively discourages rebuilding work. As an example, he explained that ” “Earthquake strengthening costs are non-deductible. So if you’ve got a building and you want to repair your roof, you can claim a deduction to repair your roof. But if you want to strengthen your building, you can’t.”
Photo by ron.boost