Iain Blakeley

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

Non-established businesses

Bit of a GST fizzer…..

We were eagerly awaiting an announcement in yesterday's Budget 2015 speech on digital services but.... nothing. How many more countries need to take the lead on this before NZ acts?

Govt raises stakes for online shoppers

The NZ Prime Minister says his government will go it alone if the OECD doesn't move quickly enough to impose GST or VAT on online sales. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11418586 The fact the Prime Minister is raising this now is...

Governments using lotteries to collect tax

Tax collectors in the EU are looking more closely at the use of lotteries to tackle VAT evasion. This paper, just published, discusses how existing lottery schemes work and reveals there could be upside for governments. It concludes more empirical evidence is needed...

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...

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...

Visiting sports teams

The recent publicity about AFL players being pinged for income tax as "entertainers" when they played the Anzac Day matches here is interesting. See here: http://www.3news.co.nz/Wellington-AFL-game-hit-with-tax/tabid/415/articleID/355731/Default.aspx Like everything...

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...

Global VAT alignment edges closer

At the Global Forum on VAT in Tokyo last week 86 countries signed up to the first agreed framework for applying VAT to internationally traded services and intangibles. The new guidelines set out core VAT principles to be applied when taxing services and intangibles,...

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...

GST and online shopping – is there a cure?

The NZ Government has delayed the Customs / IRD report on GST and online trading to allow the issue to be considered as part of the wider review of how global corporates are taxed. I think the merger of the issues was unavoidable. They are closely linked and the...

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...

At least it’s a start

More pressure from retailers for the Government to remove the iow value import threshold for goods. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11171599 This isn't going to go away. It's part of the wider debate on how to tax the digital...

At least it’s a start

There's a lot of chatter about South Africa's proposed law requiring foreign businesses to charge VAT on sales of digital products to South African residents. If passed the law will cover things like music, videos, software and games sold on line. At the moment, like...

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...

Online trading – again

Once again the issue of internet purchases coming in to NZ GST free is hitting the news. See here In my view this needs to be addressed. The size of the problem will only increase. Having any kind of exemption like this distorts our GST system and favours some at the...