Iain Blakeley

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

GST news
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...

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...

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...

IRD comments on short term Christchurch rentals

Inland Revenue's latest Business Tax Update reminds us people renting out houses in Christchurch short-term have to pay income tax on the rent, less deductions. It's a pity they don't mention GST because that's more interesting. The update is here:...

GST and tips

Some discussion lately on tips and GST. It's become more common for eftpos devices to offer customers a tipping option when paying their bills. The GST implications of this are more complex than the old-fashioned method of slipping a bit of extra cash to the staff...

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...

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...

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 First GST policy

Removing GST from food is back on the political agenda thanks to Winston Peters' announcement yesterday. Recent calls for GST free food have focussed on the health aspects. This doesn't seem to be a prime motivator for NZ First but it does appear the policy would not...

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...

GST for schools – consultation

Inland Revenue has released a draft Public Ruling on the GST treatment of payments by parents to state schools. This is a re-issue of previous rulings with just a few changes to reflect recent developments in GST law. If you want to comment on the draft ruling you...

Bahamas VAT

The Bahamas will have a new VAT from 1 January 2015: 7.5% (0% for exports) on a broad range of goods and services, few exemptions, small business concessions, "inclusive" pricing and an extensive public education programme. Confirmed by the PM and Minister for...

VAT and online sales

This is a very good item on the wider business implications of proposed changes in Europe to the VAT treatment of online digital media sales. http://performance.ey.com/2014/02/20/vat-change-online-sales-just-tax-concern/ Cheers Iain

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,...