12 Nov 2013
TRUSTPOWER LIMITED v THE COMMISSIONER OF INLAND REVENUE [2013] NZHC 2970 ]
- Citation
- [2013] NZHC 2970
- Court
- High Court
Resource consents obtained by TrustPower for the four pipeline projects are not stand-alone assets separable from the projects; they are components of project feasibility work. Expenditure incurred in obtaining those consents formed part of recurrent feasibility expenditure in the development pipeline and is revenue in nature and deductible under the general permission (s DA1). Section DB13B and depreciation provisions do not mandate treating such consent costs as capital. Even if consents were treated as stand-alone assets, application of the BP Australia indicia and accounting recognition t…