Racing stakes won overseas will be exempt from income tax, Racing Minister Annette King announced yesterday.
Mrs King said she and Finance Minister Michael Cullen both believed the current situation was unfair and needed addressing.
"I was surprised by the obvious inconsistency of this tax," Mrs King said.
Mrs King said she and Dr Cullen had met thoroughbred and standardbred breeders in early April, and agreed with their contention that the tax was unfair, "particularly because expenses could not be claimed for the horse and may not be claimed for the dog that won the stake money."
The Income Tax Act will be amended in October, Mrs King said, to take effect for the year beginning April 1 next year.
It would include all racing activities, thoroughbred, standardbred and greyhound.
Racing: Tax on stakes to be fairer
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