Tax Clarification for Quake Victims
August 7, 2012 New Zealand Taxation
The government is instating more changes to the tax rules applicable to victims of the Canterbury earthquakes.
On August 6th the Minister of Revenue of New Zealand Peter Dunne announced that a new supplementary order paper has been released in order to addresses several tax issues concerning the tax treatment of taxpayers affected by the Christchurch earthquake.
The Minister explained that nearly 18 months have already passed since the major earthquakes in Christchurch, and the latest supplementary order paper shows that the government is still taking significant steps to assists those affected by the disaster.
The new paper tweaks the rules on tax depreciation roll-over rules in order to ensure that the function as originally intended by the government, and clarifying the rules regarding tax rules for assets which are deemed to be uneconomical to repair.
Rules will also be clarified to ensure that GST is not levied on payments made to New Zealand tax residents from non-resident insurers for damages occurring during the earthquake.
Several other small tweaks will be made to tax rules in order to ensure that victims of the Christchurch earthquake do not suffer excessive tax liabilities during their rebuilding process.
Peter Dunne explained that the issues addressed in the supplementary order paper were all originally raised by the people of Christchurch, and he is confident that the amended rules will provide practical help to the people of the Canterbury region.
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