11 August 2000 Media Statement

Ministers will remove unfair racing tax

Racing Minister Annette King says race stakes won overseas will become exempt from income tax.

Mrs King said she and Finance Minister Michael Cullen both believed the current situation was unfair and needing addressing.

“I was surprised by the obvious inconsistency of this tax," Mrs King said. "Although stakes won domestically are not taxable, owners can be taxed on overseas stakes if racing is part of their business."

Mrs King said she and Dr Cullen had met thoroughbred and standardbred breeders in early April, and agreed with their contention that the tax was unfair, "particularly because expenses could not be claimed for the horse and may not be claimed for the dog that won the stake money.

"We thought the breeders' position was perfectly reasonable, and have agreed the Income Tax Act will be amended in the next available tax Bill, scheduled to be introduced in October.”

Mrs King said the new regulation would take effect from the income year commencing 1 April 2001, and would include all racing activities, thoroughbred, standardbred and greyhound.

ENDS

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