Iain Blakeley

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

Cases

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...

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...

Exporters beware!

There's no GST on exports, right? Wrong! Sometimes GST does apply to exports. Here's an example: NZ Ltd agrees to sell products to UK Ltd. UK Ltd is going to use the parts in the creation of a sculpture in the UK. NZ Ltd invoices UK Ltd and receives payment before the...

4 1/2 years in prision for $2.1m GST fraud

An Auckland property developer has been jailed for 4 1/2 years for tax evasion after he claimed GST refunds on property acquisitions over 3 years and then failed to account for GST or income tax on the sales. It was deliberate evasion according to the court. Inland...

Penny and Hooper decision carries GST lessons.

The Supreme Court ruled yesterday that orthopaedic surgeons Ian Penny and Gary Hooper avoided tax when they diverted income from their practices to lower tax rate entities such as companies and trusts. A significant issue was the below market salaries they paid...

How complicated can you get?

The Australian legislature has just passed some new regulations confirming parking charges, road tolls, facility hire charges, tip fees and fees for access to information are subject to GST. One thing we should be thankful for as taxpayers is that we live in a country...

Warning for small operators

A recent Australian court case serves as a warning for very small businesses. The NZ rules are similar. The taxpayer bought a former fauna park intending to convert it to educational and accommodation use. However the taxpayer didn't get around to kick starting their...

‘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...

Another reason to do business in New Zealand

I was catching up on some reading of global tax developments and one in particular served as a reminder that in some respects our tax system is quite benign compared to other countries. The UK have VAT rules which restrict what gifts and samples a business can provide...

What not to do when dealing with the tax department

A recent case is littered with examples of how not to handle your tax affairs. Case 2 2011 NZTRA 11 The taxpayer wanted to challenge assessments issued by the IRD. The court said she couldn't because of the way she managed her tax affairs. She didn't even get a chance...