The Queenstown Lakes District Council has been able to create a tax efficiency through a transaction with the Queenstown Airport Corporation under the Income Tax Act.

The full council considered the transaction last month (May meeting).

“When the council has tax losses the Tax Act allows these losses to be offset to or purchased by QAC” QLDC deputy chief executive and director finance Stewart Burns said.

The term describing the purchase option is a ‘subvention payment’. The last time such a payment made was in 2006.

“In this case the QAC has made a payment of $81,261 to the council, reducing the QAC taxable surplus by that amount” Mr Burns said.

The QLDC group tax saving arising from the transaction was $24,378,’ Mr Burns said.

ENDS

For further information please contact Stewart Burns 03 441 0499.

By: Super Administrator