The biggest listed property investor in the country, Kiwi Income Property Trust has recently taken a beating from the $143.9 million tax bill. It is to be mentioned here that the trust has suffered as it falls under the government's changes to rules on claiming depreciation but a couple of industry experts are of a view that the trust may reverse the hit taken by its financial results.

According to the recently posted result by the trust, it has registered a net loss of close to $118.5 million in the six months ended September 30 which is very dangerous as compared to the $18.2 million loss a year declared by the company earlier.

Moreover, the Auckland-based trust said in a statement that the distributable profit (the preferred measure for property investors which strips out unrealized movements in fair value) filed a rise of 10% to a level of $33 million.

The tax hit to the trust clearly means that the trust has been able to forfeit its future tax deductions but even if an asset is sold it will not be able to realize the same.

The trust also mentioned here that the International Accounting Standards Board has recently issued an exposure draft that will have some provisions that are expected to provide deferred tax on items which it will not be able to crystallise.