MCK expects $26m tax adjustment due to legislation change

Millennium & Copthorne Hotels NZ (MCK) has announced that it expects a one-off, non-cash deferred tax liability adjustment of approximately $26 million.

The adjustment is a result of changes to tax legislation, which eliminated the ability to claim tax depreciation on commercial buildings.

MCK clarified that this adjustment will not impact its trading profitability or cash flows.

The company, which is the only NZX-listed hotel owner-operator in New Zealand, is set to release its 2024 interim results in the first half of August.

MCK noted that it had been assessing the impact of the tax change and sought external accounting and taxation advice.