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Inland Revenue

Tax Policy

Last updated 10 December 2019
Closing date 10 December 2019

Status Complete

Purchase price allocation

An officials’ issues paper, Purchase price allocation, sets out proposals to ensure that parties to the sale of a business or commercial property adopt the same allocation of the global price to the various assets, and base this allocation on relative market values.

The proposals aim to increase taxpayer certainty, prevent vendors and purchasers from engaging in allocation practices that reduce tax revenue, and to minimise administrative costs.

Any amendments resulting from these proposals will be included in a tax bill planned for introduction in the first half of 2020.

Submissions closd on 14 February 2020.