The Taxation Implications of Repairs, Alterations and Maintenance

A consideration of section 108 of the Income Tax Act 1976 and the manner in which it deals with repairs and alterations. The article also examines the issue of maintenance, which is not mentioned in the section except for its inclusion in an erroneous title. In Auckland Trotting Club v CIR [1968] NZLR 193 the second proviso of section 108 was interpreted as creating an independent head of deductibility. The second proviso, by implication, is not therefore subject to section 104, which allows expenditure incurred in the production of assessable income to be deducted from the total income