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ITA 2007, Part C-Income, Subpart CH-Adjustments is matching rules for revenue account property, prepayments, and deferred payments. 1 ITA 2007, Part E-Timing and Quantifying Rules, Subpart EA is matching rules for revenue account property, prepayments, and deferred payments. 2 Section CH 2-Adjustment for prepayments references Section EA 3(Prepayments).  Section EA 3-Prepayments Subsection 3, Unexpired Portion references Section CH2. What legislation is saying is that the unexpired portion of a prepayment is income in the current year and a deduction is allowed in the following year only. However, TAA 1994, Section 91AAC, Exemptions from section EA 3 of Income Tax Act 2007, the Commissioner may determine whether and the extent to which a prepayment can be treated as a deductible in the current income year, having regard to the nature and kind of expenditure, nature, and size of the activity, the costs to the person, and the materiality of the difference. 3 Determination E12, Person...

IRD has a formal procedure to set depreciation rates or create new categories for assets and industries. This is called "issuing a determination". 1 Determination DEP80(2011) provides a new list of assets for the 'Residential Rental Property Chattels' industry category. 2 In general, the Commissioner of Inland Revenue issues determinations about various tax issues such as accrual expenditure, depreciation (as in DEP80), financial arrangements, foreign currency, livestock valuations, standard costs for boarding service providers, and childcare providers. 3 This DEP80 list contains asset classes like carpets, dishwashers, and furniture, that satisfy the three-point test, to be treated as separate depreciable properties and give their estimated useful life, diminishing value rates, and straight-line rates. 1. IR260 2023 - Depreciation - guide for business 2.  https://www.taxtechnical.ird.govt.nz/determinations/depreciation/general/dep-80-residential-rental-property-chatt...

Interpretation Statement IS 10/01 1 , sets the Commissioner's view on determining whether an item in a residential rental property is a separate item of depreciable property, or is part of the building.  The approach is a three-step test. Step 1: Determine whether the item is in some way attached or connected to the building. If it is completely unattached, it will not form part of the building (plugged or wired items are not considered attached). If the item is attached, step 2 Step 2: Determine whether the item is an integral part of the residential rental property. Is the rental property considered incomplete or unable to function without the item. Integral items are part of the building. If the item is not integral, step 3 Step 3: Determine whether the item is part of the fabric of the building, considering the nature and degree of attachment, difficulty, and damage in removal. If the item is part of the fabric of the building, then it is part of the building. Examples in IS 1...

 Computer-assisted Audits 1 could be of two types as specified in IR297 (I)Systems audit and (II) Data download A systems audit is the detailed analysis and evaluation of a complete accounts computer system - data entry to posting to financial accounts. It includes IRD  talking to staff who have a day-to-day understanding of the computer programs and operations. Data download - Where data from a client is analyzed using commercially available software. MYOB and Xero accounting software both meet the requirements for keeping computer records electronically as set out in IR297a (Computer-assisted Audits), including approval to hold customer data offshore. If storing records electronically, utilizing the ‘Attachments’ function available in both Xero and MYOB is advised allowing the customer to upload copies of invoices and other documents. If the customer ends the subscription to MYOB or Xero, customers have to export/back up any data or documents to meet their record-keepi...