Iain Blakeley

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

Government revenue collections: deficit: retail spending

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...

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...

Savings up + GST collections down = GST rate up?

Kiwi households are saving more than at any time since 1995 according to the latest national accounts. http://www.beehive.govt.nz/release/household-savings-rate-positive-five-years The flip side is with low inflation and lower consumption the Government's GST take is...

What’s the IRD working on?

IRD has published its Public Rulings work programme for 2014/15. You can find the full document here: http://www.ird.govt.nz/resources/7/7/77d3ecdd-6305-408a-8b88-541e509f487b/download-pr-work-programme-2014-2015.pdf Given GST is by far the most interesting tax here...

Good news

Might as well start the year with a bit of good news, even if it's a little old by now. On 11 December the Government gave us a xmas present with the announcement by the Minister of Customs the Temporary Import period for yachts, launches and small craft will be...

The GST cost of eradicating cats

Gareth Morgan wants cats to be eradicated from New Zealand. NZ Herald 22 Jan I haven't seen any analysis of the tax impact of this policy so thought I'd run some quick numbers myself. Apparently there are more than 1.4m cats in New Zealand (a world record per capita)....

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...

GST and non-profit bodies

Inland Revenue released their updated "Public rulings work programme" on 5 October. This is where they announce key policy areas they are working on at the moment. It means we can expect some sort of discussion document, legislative announcement or ruling on certain...

Late payment fees or penalties?

Yesterday's tax bill proposes a new provision saying "a fee charged for the late payment of an account" is treated as subject to GST. It will be back dated to 2003 to prevent the Government being inundated with refund claims. My issue is with the drafting. It applies...

All Black Rugby World Cup jerseys

The furore over being able to buy the new AB jerseys overseas for less than they are sold locally once again calls into question how well our tax legislation is dealing with internet commerce. The pricing of the jerseys overseas would seem to allow them to be imported...

“Fresh fruit and vegetables”

So the Labour Party has confirmed their policy to remove GST on "fresh fruit and vegetables". This is new ground for NZ's GST policy and it will be interesting to watch the debate unfold as producers strive to get their products within the concessionary rate. For my...

Kiwis are spending more but are they buying more?

The NZ Finance Minister announced this afternoon that GST revenues for the 11 months to 31 May are 4.2% above Treasury forecast. This is put down to greater than expected retail activity, particularly in the March quarter and lower refunds being paid out than...