A focus on topical tax issues - February 2015
Consultation on the land development and subdivision provisions
Late last year, Inland Revenue released two exposure drafts relating to land subdivisions and developments. These were
- QWB0100: Income Tax – Major development or division – what is ‘significant expenditure’ for section CB 13 purposes, and
- QWB0040: Income Tax – Whether it is possible that the disposal of land that is part of an undertaking or scheme involving development or division will not give rise to income, even if no exclusion applies
What is significant expenditure for major subdivisions?
The draft statement QWB0100 provides some much needed guidance on what type and what level of expenditure could trigger the land taxing provision applying for major subdivisions, section CB 13 of the Income Tax Act 2007 (“the Act”). More >