CA-STUDENT
650 Points
Joined October 2008
Above answers are correct but in some cases we may apply for new rate of deprecation.
As per my knowledge deprecaition rate can be changed in some circumstances, if we apply for the same to the authority.
Source: GOOGLE
Special tax depreciation rates
2.15 Taxpayers can apply for special depreciation rates that are higher (or lower) than those prescribed by Inland Revenue if they consider the prescribed general depreciation rate is substantially different from the rate that should apply. This may arise, for example, if a depreciable asset is being used in a way that is different than that considered by Inland Revenue when determining a general economic depreciation rate for the asset. A special rate may also be applicable if the economic life of a depreciable asset is dependant on certain factors, such as the length of a taxpayer’s income-earning process or business (and cannot be salvaged at the end of it). However, the onus is on the taxpayer to prove that a special depreciation rate is warranted by, for example, providing evidence that an asset will cease to be useful to them or any other taxpayer after a certain date. The taxpayer is also required to provide the appropriate data to be considered by Inland Revenue.
2.16 When considering a special depreciation rate application, Inland Revenue must have regard to the legislative formula for calculating economic depreciation rates, as well as the depreciation rate adopted by a taxpayer for financial reporting purposes.
2.17 Taxpayers can apply for a provisional depreciation rate for an asset if no applicable prescribed rate currently exists. This may arise in the case of newly invented assets.
2.18 Special and provisional depreciation rate applications are considered by Inland Revenue Adjudication and Rulings.