High Court finds remediation work on rental property capital in nature

The High Court found in favour of the Commissioner, confirming assessments made in relation to income tax returns for the years ending 31 March 2018 and 2019 disallowing deductions claimed by Mr and Mrs Lawrence (together the plaintiffs) for remediation work on their Tauranga rental property. The Commissioner considered the payments were capital in nature and made assessments on that basis. The High Court found the evidence supported the Commissioner’s position and the plaintiffs had not satisfied their onus to show the assessments were wrong and by how much.