Iain Blakeley

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

Parliament

“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...

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...

Who’s making submissions?

I'm interested in hearing from anyone who is considering making a submission in response to the latest discussion document from Inland Revenue on GST. They are looking for feedback on the suggestion of loosening the rules for overseas businesses wanting to recover GST...

GST exemption gaining momentum?

Today's presentation of a petition to Parliament for GST to be removed from food shows debate around this is only going to intensify leading up to the election. It seems there's support coming from Maori and Mana Parties and the Greens. With Labour's stated policy to...

“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...

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%....

Cloud computing tax risks

Cloud computing is predicted to become increasingly popular with businesses looking for a complete outsourcing solution to their IT needs. It allows access to computer infrastructure, software and storage (amongst other things) over the internet. New Zealand's Inland...

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...