Payments of interest post-war Section CW 5 Interest derived by a person To reduce compliance costs, as interest   credits: exempt income section 2 of the Income Tax on post-war credits was already exempt -Exemption (Repayment of Post-War Credits) Act from tax in the UK. 1959 of the United Kingdom Parliament is exempt income. Payments of interest on farm Section CW 6 50 percent of the interest that an To encourage farmers.   mortgages: exempt income individual derives from a mortgage -Exemption securing a loan made by a seller of a farm is exempt income, if the Rural Banking and Finance Corporation of New Zealand approves the mortgage. Petroleum mining expenditure: Subpart DT, Development expenditure is written off To make the NZ mining industry more   accelerated deduction sections EJ 12-20 over an accelerated seven-year period. competitive internationally (and similar to the rules in Australia) -Deduction Plain clothes allowances Section CW 17CC In very limited circumstances a To reduce compliance costs.   clothes allowance paid to an employee -Exemption who is also provided with a uniform can be tax exempt. Research and Development Subpart MX In qualifying circumstances a company To reduce bias against investment in –   cashing out tax losses that conducts research and R&D start-ups arising from the current -Cash-out of losses development and incurs tax losses may treatment of tax losses. cash out the tax of the research and development part of the tax losses. This is repayable against future profits, or in certain other circumstances. Scholarships and bursaries: Section CW 36 Any scholarship or bursary payment for To assist education development.   exempt income attendance at an educational institution -Exemption is exempt income, except for a grant or an independent circumstances grant under the Education Act 1989. TAB and racing exempt Section CW 47 Income derived by the New Zealand To reduce administrative costs owing to   income Racing New Zealand the small amount of receipts. -Exemption Thoroughbred Racing, Harness Racing New Zealand and the New Zealand Greyhound Racing Association is exempt income. Note that betting turnover is separately taxed.
Payments of interest post-war credits: exempt income Section CW 5 -Exemption Interest derived by a person section 2 of the Income Tax (Repayment of Post-War Credits) Act 1959 of the United Kingdom Parliament is exempt income. To reduce compliance costs, as interest on post-war credits was already exempt from tax in the UK.   Payments of interest on farm mortgages: exempt income Section CW 6 -Exemption 50 percent of the interest that an individual derives from a mortgage securing a loan made by a seller of a farm is exempt income, if the Rural Banking and Finance Corporation of New Zealand approves the mortgage. To encourage farmers.   Petroleum mining expenditure: accelerated deduction Subpart DT, sections EJ 12-20 -Deduction Development expenditure is written off over an accelerated seven-year period. To make the NZ mining industry more competitive internationally (and similar to the rules in Australia)   Plain clothes allowances Section CW 17CC -Exemption In very limited circumstances a clothes allowance paid to an employee who is also provided with a uniform can be tax exempt. To reduce compliance costs.   Research and Development – cashing out tax losses Subpart MX -Cash-out of losses In qualifying circumstances a company that conducts research and development and incurs tax losses may cash out the tax of the research and development part of the tax losses. This is repayable against future profits, or in certain other circumstances. To reduce bias against investment in R&D start-ups arising from the current treatment of tax losses.   Scholarships and bursaries: exempt income Section CW 36 -Exemption Any scholarship or bursary payment for attendance at an educational institution is exempt income, except for a grant or an independent circumstances grant under the Education Act 1989. To assist education development.   TAB and racing exempt income Section CW 47 -Exemption Income derived by the New Zealand Racing New Zealand Thoroughbred Racing, Harness Racing New Zealand and the New Zealand Greyhound Racing Association is exempt income. Note that betting turnover is separately taxed. To reduce administrative costs owing to the small amount of receipts.  
b18-taxexpstmt.docx