TrustPower wins tax dispute over deductions on project feasibility costs

Monday 18th November 2013

TrustPower, the energy company controlled by Infratil, has won a tax dispute with the Inland Revenue Department over whether it could claim deductions on costs arising from the feasibility of renewable generation projects.

The High Court ruled in favour of the Tauranga-based company that some $17.7 million of feasibility expenditure incurred from four renewable projects between the 2006 and 2008 tax years was deductible, TrustPower said in a statement.

"While the judgment remains open to appeal, this is a pleasing result for TrustPower in a dispute that has run for close to six years and required substantial time and resources to litigate," the company said.

TrustPower faced an extra tax bill of some $5.9 million plus $2.9 million in interest if it had lost the case, and would have lifted its expected future tax bill by some $5.8 million for the 2009 through 2014 tax years.

The shares were unchanged at $6.65 in trading today, and have dropped 21 percent this year.

BusinessDesk.co.nz

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