INCOME TAX

Otago Daily Times, Issue 24896, 21 April 1942, Page 4

INCOME TAX

EMERGENCY EXPENDITURE EXEMPTED (P.A.) WELLINGTON, Apl. 20. Deductions for income tax purposes are now permitted in respect, of expenditure by business firms and others on war emergency equipment, stated the Commissioner of Taxes, Mr J. M. Park, to-day. The classes of expenditure allowed include the following:— 1. All emergency fire equipment. 2. Protective clothing for staff .engaged on air raid or first aid duties 3. The training of employees in such duties. 4. The covering of glass with wirenetting. 5. Dark blinds, screens and paint to render windows opaque. 6. Equipment and stores for first aid parties. 7. Work on simply - constructed trenches and sandbag ramparts. The commissioner states that expenditure on items which are not part of a permanent building structure, but represent fixtures or fittings required and used only for the war emergency, will be regarded as revenue expenditure, and will be allowed as a deduction for the year in which the expenditure is incurred. Where a taxpayer is recmired to alter an existing structure fn such a manner that additional permanent value is created, the expenditure involved will be treated as capital expenditure, and no deduction will be possible.