Tax advice relating to Psa
Over the last few years many growers have purchased licences to grow varieties of kiwifruit. These are able to be amortised over a period of time – depending on the licence PVR (Plant Variety Right) date. Given the Psa-V issues, these licences may now be worth a lot less or may even be worthless.If the licence was acquired from Zespri or a third party then on the face of it a deduction is available for any loss on sale provided the licence was not used or available for use before 1 April 1993.
Alternatively, if the taxpayer reasonably decides the licence is worthless, a deduction for its tax book value as at the start of the income year that such a licence becomes worthless may be allowed.If the license was acquired from an associated person, we recommend that you seek specific professional advice.