Iain Blakeley

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

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GST derails another property sale

GST derails another property sale

Recently from the Court of Appeal, another example of how GST can derail what should have been a simple property sale. Y & P NZ Ltd v Yang Wang & Chen Zhang [2017] NZCA 280 is a decision from the Court of Appeal about whether caveats registered by 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...

Good news for Australian tiramisu lovers

The Australian Tax Office publishes a detailed food list which, over 88 pages, gives their opinion on the GST status of everything from abalone to zabaglione. Tiramisu was on the list as subject to GST. However, on 27 August the Tax Office removed tiramisu from the...

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,...

“Australia should follow NZ GST”?

NZ's GST is certainly the most efficient form of VAT in the world. The "VAT Revenue Ratio" is used by the OECD as a measure of VAT efficiency. The average in the OECD is about 50%. The least efficient is Turkey's VAT at about 30%. NZ ranks top at a little more than...

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...

Vendor financing

Useful recent Australian tax case on GST and vendor loans. Mathiesen Family Trust v FC of T [2013] ATC 10-327, 15 July 2013. The taxpayer agreed to sell land for $3.5m. The purchaser could only pay $2m on settlement and borrowed the balance of $1.5m from the vendor,...

VAT global expansion continues

Suriname is the latest country to announce an intention to replace a turnover tax with VAT. The new tax is expected to apply from 2014 and basic food items are likely to be zero rated. The policy and tax administration arguments for VAT are pretty compelling. Also,...

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...

NZ tax department reveals its compliance focus

Our new tax Commissioner has just released a document outlining her department's key compliance programmes for 2012/13.http://www.ird.govt.nz/resources/6/6/661d18004c5fb8aea1cde57bdeadb8e8/our-compliance-focus-2012.pdf?CACHEID=661d18004c5fb8aea1cde57bdeadb8e8The 32...

Tax free shopping zone for Christchurch?

A tax free zone in Christchurch has been suggested by a new business owners' group there. I think it is a well intentioned idea which poses some reasonably big challenges in practice. The intention is to encourage businesses (and shoppers)to return to the CBD during...

‘Look everyone…… no hands!’

Ever heard anyone yell that out moments before their bike hits a bump in the road, gets a serious case of speed wobbles and finally careers into a solid object? A recent case from the Taxation Review Authority reminded me how a seemingly innocent transaction can end...

1st April

Don't forget the big GST changes which come into effect tomorrow. These changes impact you if you are a business and: - enter into any transaction involving land. - supply residential accommodation. - supply financial services. - supply fine metals like gold and...

The important GST policy issues…

IRD Policy have just released their updated work programme for 2010 / 2011. I understand they will consider submissions from anyone who feels there are other more pressing tax policy considerations. Here's what they have in the policy pipeline for GST: - June 2011: a...

The great New Zealand GST myth?

"Single rate, broad based" is the catch phrase of New Zealand's GST system but is it really true? There are now 9 GST rates applying in New Zealand as determined in the legislation or by IRD decree. They are 0%, 7.5%, 9%, 10.25%, 10.75%, 12.3%, 12.5%, 12.9% and 15%....

New rules fly in under urgency

The Government had Parliament sit under urgency at the end of last week to help get away some pretty significant legislation. New GST law was passed on Friday and now awaits the GG's signature, expected this week. Once enacted the new law means: - Transactions...