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What the IRD is up to

The GST boffins at the IRD have a lot in store for us over the next few months.

The Department’s latest work programme (updated 6 October) indicates they expect to finalise their GST views on retirement villages in December and over coming months will release consultative documents on the GST treatment of immigration services and matrimonial property agreements.

On hold for the time being is a project dealing with GST issues for non-profit bodies.

The schedule of work published by the IRD is an insight into how busy they are and which tax issues they are prioritising. You can find a copy of the work programme here:

A few other projects have a GST component. They include: –

Review of the guidelines for determining whether someone is an employee or independent contractor.
Independent contractors are more impacted by GST than employees.

Trade bonuses and gift programmes for businesses receiving in kind benefits
GST has to be considered here. In kind benefits received in consideration for trade loyalty could be subject to GST.

Barter transactions
Barter transactions can be a compliance headache for businesses and often get overlooked. In kind sponsorships are a classic example.

Tax treatment of costs of holding AGM, shareholder meetings and maintaining share register
Hopefully the IRD cover GST here. There is uncertainty over the ability of businesses to recover GST on these sorts of costs.

On top of all this we’ve got new rules in April for land transactions and partial input tax recovery.

Busy busy busy

Iain

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