New Zealand Tax Agency Issues Technical Decision Clarifying GST Input Tax Deductions, Registration

The New Zealand Inland Revenue March 10 issued Technical Decision Summary No. 25/05, clarifying GST input tax deductions and registration. The taxpayer, a GST-registered company with multiple shareholders, leased land to one of its shareholders. The taxpayer later sold the land and ceased the making of taxable supplies without de-registering for GST. The taxpayer claimed input tax deductions relating to legal fees it incurred during the previous two years while not making any taxable supplies. The Customer and Compliance Services (CCS) argued that the taxpayer had no taxable activity and wasn’t entitled to the input tax deductions that it claimed ...