New Zealand Issues Draft Interpretation Statement on the Deductibility of COVID-19 Costs

New Zealand Inland Revenue has issued a draft Interpretation Statement regarding the deductibility of costs incurred due to COVID-19. A summary of the draft statement is provided as follows:

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Summary

1. The COVID-19 pandemic has caused significant disruption to businesses. Many businesses have had to incur additional costs (that might be described as unusual or abnormal) due to the pandemic. In addition, businesses may be incurring depreciation loss or other holding costs on assets th…