Iain Blakeley

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

Property
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...

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...

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:...

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...

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...

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...

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...

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...

Buying or selling land?

There's a completely new GST regime coming into force on 1 April for transactions involving any land between GST registered businesses. The new rules mean some parts of the current Real Estate Institute and Law Society Standard Sale and Purchase of Land agreements...