New Zealand Tax Agency Issues Technical Decision Clarifying GST Zero-Rating, Input Tax Deductions, Shortfall Penalties

The New Zealand Inland Revenue March 26 issued Technical Decision Summary No. 25/07, clarifying the zero-rating of GST, input tax deductions, and shortfall penalties. The taxpayer, an individual, claimed to be involved in the taxable activity of freight-forwarding and acting as an agent for overseas customers. Customer and Compliance Services (CCS) questioned the taxpayer’s claimed input tax deductions and the existence of a taxable activity. The taxpayer sought clarification on whether they were entitled to charge GST at a zero percent rate on supplies of goods or services, or to the input tax deductions claimed. The Tax Counsel Office (TCO) ...