Tax changes hit THL profit

Tourists visiting the Waitomo Caves, one of Tourism Holdings' investments. Photo / Thermal Air.

NZX-listed Tourism Holdings expects its annual net profit to decline by $940,000 as a result of Government tax changes to depreciation.

THL will increase its deferred tax liability adjustment for the year ended June 30 as a result of the removal of the ability to depreciate buildings with a useful life of over 50 years.

The new tax policy will hit THL on July 1, 2011.

Shares in THL, which releases its annual results on August 26, closed up 3c at 78c yesterday.