1 Jul 2019
MERCURY NZ LIMITED v COMMISSIONER OF INLAND REVENUE [2019] NZHC 1524
- Citation
- [2019] NZHC 1524
- Court
- High Court
Applying the ordinary and natural meaning of "building" together with the statutory carve‑outs and purpose of the depreciation regime, the turbine halls (excluding electrical annex and TG Foundation) are buildings: appearance, enclosure, permanence and independent function satisfy the test and Mercury failed to prove that the halls are so integral to the production apparatus that they constitute plant. Therefore the turbine halls have an EUL ≥50 years and are subject to a 0% depreciation rate under the Income Tax Act 2007.