NOT DEDUCTIBLE
COST OF CHANGE-OVER
FROM BUTTER TO CHEESE
TAX COMMISSIONER’S RULING
Dairy farmers who were compelled lo change over from butter to cheese supply, were obliged to incur varying items of expenditure to equip their dairies with additional piant to cope with an increased bulk supply, and also to facilitate its handling. This expenditure, however, will not be dedoc! ible from taxable income according to a ruling given by the Commissioner of Taxes, Mr J. M. Park, lo Mr M. J. Cooper, of Pukekohe, who made enquiries on the subject. The Commissioner writes: "In reply to your letter of April It, 1 have to advise that the cost of alterations, or additions, to plant made necessary through the change over from butter to cheese, is not deductible and the grant made lo farmers to cover such expenditure is not. assessable. Depreciation at the schedule rates will continue to be allowed subject to the usual conditions on separation plant retained, even though such plant may not have actually been used in production of the income during the income year."
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/FRTIM19420424.2.14
Bibliographic details
Franklin Times, Volume XXXI, Issue 46, 24 April 1942, Page 2
Word Count
179NOT DEDUCTIBLE Franklin Times, Volume XXXI, Issue 46, 24 April 1942, Page 2
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