Iain Blakeley

Barrister - Tax Expert - Business Adviser - Director, Professional, Practical, Fast, Affordable

Input tax credits
Easy fix costs Rugby League Club

Easy fix costs Rugby League Club

Keeping up with your tax obligations can sometimes seem a drag: forms to be filled in, changes to keep abreast of and an incessant focus on the detail. Mistakes can be costly. A few dollars here and there might be overlooked but get it much more wrong and you can be...

It wouldn’t happen in New Zealand – or would it?

An Australian court says a taxpayer has not commenced a subdivision activity until they have the funds needed to purchase the land. The costs spent beforehand on planning permits and market valuations were preliminary or preparatory to starting any business. That's...

Fishing quota and coastal permits

Inland Revenue has confirmed GST second hand goods credits cannot be claimed on the purchase of fishing quota, coastal permits and certificates of compliance. Two binding rulings (BR 15/01 and 15/02) just released by the tax department conclude fishing quota, coastal...

Australian Tax Office rules on Bitcoin

The ATO has just issued a ruling on the GST treatment of Bitcoin. Here: http://law.ato.gov.au/atolaw/view.htm?docid=%22GST%2FGSTR20143%2FNAT%2FATO%2F00001%22 In brief: 1. A transfer of bitcoin is a "supply" for GST purposes. 2. Bitcoin is not "money" under the GST...

12 GST thoughts of Christmas

12 GST thoughts of Christmas: 1. There's no GST on gifts (so Santa is probably not GST registered). 2. GST registered businesses can claim back the GST on gifts they buy for staff, suppliers and customers. 3. If you buy someone a gift voucher for Christmas it's quite...

Certainty in construction

Planning ahead and attention to detail in contractual documentation are essential for retirement village operators wanting clarity of what GST costs they are up for. That was the key GST message at this week's Retirement Villages Association finance forum focussing on...

28 October deadline for non-residents

Non-residents wishing to register under the special GST registration system have until 28 October to ensure their registration (and refund claims) are backdated to 1 April 2014. All non-resident businesses who have incurred costs in New Zealand and who are not already...

Surprise in body corporate treatment?

A Product Ruling (BR Prd 14/08) published by IRD on 28 July is fascinating as much for what it doesn't say as the conclusions reached. Facts briefly: - Unit title building in Christchurch. - Mostly commercial property. - Destroyed in earthquake. - Body corporate...

NZ businesses are getting it wrong

I'm seeing increasing evidence of misunderstanding over how the zero rating rules apply. From 1 April 2014 non-resident businesses can register for GST in NZ under a new system which allows them to claim GST refunds on business related costs. Historically a business...

Bodies corporate and GST

Last week the Revenue Minister issued another Discussion Document on the GST treatment of bodies corporate. The IRD seems to have come full circle on this one. See here: Bodies corporate and GST. It is proposed our GST legislation will exempt a body corporate under...

Are you ready for the 1st of April 2014?

Change to tax law is as certain as tax itself.The 1st of April is a favourite of governments around the world for ushering in tax changes.Here's a snippet of some changes that are coming into force in GST, VAT and other indirect taxes on 1 April:Albania - Supplies of...

Grant versus fee!

The Woking Museum and Arts and Crafts Centre is a charity set up to "advance the education of the public in local national and international history and arts and crafts". In 2003 it entered into an agreement with the Woking Borough Council [In the UK] to "provide...

12 GST thoughts of Christmas

12 GST thoughts of Christmas: 1. There's no GST on gifts (so Santa is probably not GST registered). 2. GST registered businesses can claim back the GST on gifts they buy for staff, suppliers and customers. 3. If you buy someone a gift voucher for Christmas it's quite...

GST refund claims: keep it real.

You can't claim GST back on an expense unless you actually receive whatever it is you are paying for. That's the message from the Australian Federal Court in a decision released on 1 November [Professional Admin Service Centres Pty Ltd v FC of T]. In that case the...

Commonsense prevails: well almost

Yesterday the Australian Tax Office issued a practice statement explaining when it would overlook an incorrect GST input claim made by a business. You can read it here On the face of it the practice statement reeks of commonsense. The supplier wrongly applies GST to...

Starting a new business?

If you're thinking about starting a new business be careful how much you spend on "preparatory and exploratory" work. An Australian tax court has just concluded that a couple could not claim back GST on "preparatory and exploratory" expenditure because their business...

If they take it, have you “supplied” it?

The Inland Revenue Department has published a draft view on whether a GST "supply" occurs when land is compulsorily taken by a Public Authority under the Public Works Act. At issue is whether a compulsory acquisition of land results in a "supply" being made by the...

Good news for non resident businesses

Non resident businesses looking to establish supply chains into New Zealand have to go through hoops to register for GST here and recover the GST on their NZ expenses. Often it means they're at a disadvantage when compared to businesses established in New Zealand....