Auckland International Airport Ltd said a reduction in the corporate tax rate will likely offset any impact from the removal of the ability to depreciate buildings.The Government announced in May that it is removing the ability to depreciate buildings and
Auckland International Airport Ltd said a reduction in the corporate tax rate will likely offset any impact from the removal of the ability to depreciate buildings.
The Government announced in May that it is removing the ability to depreciate buildings and is reducing the corporate tax rate to 28 percent from 30 percent.
Auckland Airport said today that it has obtained external advice on the impact of these moves on the accounting value of deferred taxation in its accounts.
Its net profit after tax will be reduced by $80 million for the year ended June 30 because of deferred tax liability increases. This is a one-off, non-cash accounting entry and has no impact on underlying profitability and cash flows, and therefore no impact on its dividend policy or financing covenants.
