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Income Tax Act 2007

Deductions - Specific rules for expenditure types

DB 63C: Meetings of shareholders

You could also call this:

“Rules for tax deductions on shareholder meetings”

If you’re a company, you can claim a deduction for the money you spend on holding your annual meeting where shareholders look at how the company is doing. This is allowed and helps reduce your taxable income.

However, you can’t claim a deduction for any money you spend on special or extra meetings with shareholders. The law says you’re not allowed to do this.

The rule about being able to deduct costs for the annual meeting adds to the general permission for deductions and overrides the rule about capital expenses. But the rule stopping you from deducting costs for special meetings overrides the general permission to make deductions. All the other general limits on deductions still apply to both situations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6193297.

Topics:
Money and consumer rights > Taxes
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Part D Deductions
Specific rules for expenditure types

DB 63CMeetings of shareholders

  1. A company is allowed a deduction for expenditure incurred in holding an annual meeting of the shareholders of the company to consider the affairs of the company.

  2. A company is denied a deduction for expenditure incurred in holding a special or extraordinary meeting of the shareholders of the company.

  3. Subsection (1) supplements the general permission and overrides the capital limitation. Subsection (2) overrides the general permission. The other general limitations still apply.

Notes
  • Section DB 63C: inserted (with effect on 1 April 2014 and applying for the 2014–15 and later income years), on , by section 50(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).