New Zealand Tax Agency Issues Decision Clarifying Requirements for GST Input Deductions, Taxable Activity

The New Zealand Inland Revenue Sept. 11 issued Technical Decision Summary No. 23/11, clarifying requirements related to GST input deductions and taxable activity. The taxpayer, a GST-registered company, claimed input deductions for specific periods. The Tax Agency’s compliance department reassessed GST for lack of documentation and proposed to retrospectively cancel the taxpayer’s GST registration. The Tax Counsel Office found that: 1) the taxpayer’s intermittent issuance of invoices wasn’t sufficient to show it was continuously or regularly carrying out a taxable activity; 2) the invoices it did provide were issued to another party and therefore didn’t evidence that it acquired the ...