Inland Revenue has lost a High Court fight with NZX-listed Trustpower over whether $17 million the electricity company spent on resource consents was tax deductible.
Trustpower, the country's fourth-largest retailer and fifth-largest generator of electricity, said $17.7 million spent in applying and getting resource consents for four projects was part of feasibility analysis and was tax deductible.
The projects in question was a hydro scheme at Arnold River on the South Island's west coast, a Southland wind farm, a hydro project on the Wairau River and a wind farm west of Dunedin.
Inland Revenue argued these resource consents were intangible capital assets and what was spent in obtaining them was capital expenditure and therefore not tax deductible.
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Trustpower then filed court action in 2011 against Inland Revenue and Justice Pamela Andrews found in favour of the electricity company in a decision released publicly today.
"While the judgement remains open to appeal, this is a pleasing result for Trustpower in a dispute that has run close to six years and required substantial time and resources to litigate, Trustpower chief executive Vince Hawksworth said today.