Tax rules pro­mote rac­ing in­vest­ment

Waipa Post - - Sport -

Rac­ing Min­is­ter Win­ston Peters has an­nounced the next steps to pro­mote new in­vest­ment in the horse blood­stock in­dus­try.

“Qual­ity breed­ing is the life blood of the New Zealand rac­ing in­dus­try. Bet­ter tax rules will en­cour­age new in­vest­ment in blood­stock breed­ing, and af­firms the Gov­ern­ment’s com­mit­ment to New Zealand’s rac­ing in­dus­try to reach its full po­ten­tial,” said Mr Peters.

“Cabi­net has ap­proved the fi­nal de­sign of the blood­stock rules which were first sig­nalled in Bud­get 2018.”

“In­vestors new to blood­stock breed­ing will be able to claim tax de­duc­tions for the cost of horses, even if they don’t own an ex­ist­ing horse breed­ing busi­ness. We ex­pect this will en­cour­age new en­trants as the in­dus­try be­comes more fi­nan­cially at­trac­tive,” he said.

“In or­der to be el­i­gi­ble for tax de­duc­tions, new in­vestors will have to pro­vide In­land Rev­enue with ev­i­dence that they in­tend to de­rive a profit from breed­ing high qual­ity blood­stock. This way we know that we’re in­cen­tivis­ing gen­uine en­tre­pre­neur­ial ac­tiv­ity that im­proves the qual­ity of the in­dus­try’s stock,” said Mr Peters. The amend­ments will be in­tro­duced by way of Sup­ple­men­tary Or­der Pa­per to the Tax­a­tion (An­nual Rates for 2018-19, Modernising Tax Ad­min­is­tra­tion, and Re­me­dial Mat­ters) Bill which is cur­rently be­ing con­sid­ered by a Par­lia­men­tary select com­mit­tee.

The leg­is­la­tion will be en­acted in early 2019.

It will have a ret­ro­spec­tive start date of Jan­uary, 2019, mean­ing it will ap­ply ret­ro­spec­tively to year­lings ac­quired at the New Zealand Na­tional Year­ling sales se­ries at Karaka in Jan­uary next year.

Photo / Alan Gib­son

New Zealand Rac­ing Min­is­ter Win­ston Peters.

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