✨ Financial Statements Notes
Financial Statements
Notes to the financial statements
23 Subsequent events
In May 2010 the New Zealand government announced two changes to the New Zealand tax regime.
Firstly, the government announced a change in the company tax rate from 30% to 28% from the 2011/2012 tax year. This change in the tax rate has the impact of adjusting the carrying values of the Group’s deferred tax assets and liabilities.
Secondly, the government announced that a deduction would no longer be given on buildings with expected lives of 50 years or more. This has the impact of reducing the tax base of buildings and creating an increase in deferred tax liabilities.
The net impact of both changes has not fully been assessed, however it is envisaged that deferred tax assets will reduce by approximately $97,000 and that deferred tax liabilities will increase by approximately $4,000,000. The net movement of $4,097,000 will be recognised in the tax expense line of the Statement of Comprehensive Income in the 2011 financial year.
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NZ Gazette 2010, No 93
✨ LLM interpretation of page content
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Canterbury Community Trust Financial Statements Notes
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💰 Finance & Revenue5 July 2010
Tax regime changes, Deferred tax assets, Deferred tax liabilities, Company tax rate, Building deductions