AOP Deductibility
This project emerged from a decision of the Inland Revenue Deartment to revisit the question of whether the provision of future expenditure for aircraft engine and aircraft maintenance is deductible in the year the provision is made. After approximately two years of lobbying the AIA has been encouraged to develop a concept based on a first principles framework of the economic cost of overhaul.
This approach, we are hopeful, will gain acceptance and, in consultation with the industry, a framework has been developed. This framework is with the IRD for consideration.
If you would like to join the consultative group please contact AIA as there is still the matter of transitional provisions, assuming IRD accept our proposal, plus a redraft of the legislation to reflect any agreement reached with the IRD.
IRD AOP Deductibility Questions
