08 May 07 Amounts misappropriated by an agent - income tax treatmentThe Government will ensure a more consistent treatment of amounts misappropriated by an agent. This measure will have effect from the date of Royal Assent of the enabling legislation.
Currently, amounts misappropriated by an agent may reduce tax liabilities only in limited circumstances. There is no offsetting adjustment available where an amount misappropriated by an agent arises from the disposal of a depreciating asset or a capital gains tax asset.
This measure will extend the recognition of misappropriated amounts to calculations made under the uniform capital allowance and capital gains tax regimes.
See Budget Paper No 2 p 8