New Zealand Tax Agency Issues Technical Decision Clarifying Liability of GST Output Tax, Shortfall Penalties

The New Zealand Inland Revenue Aug. 19 issued Technical Decision Summary No. 25/21, clarifying the liability of GST output tax on property disposals and shortfall penalties for GST-registered persons. The taxpayer, a general partnership, purchased a property for development and claimed the purchase price as an input tax deduction. Customer and Compliance Services (CCS) considered that two half shares of the property were disposed of for less than market value and issued proposed adjustments, which the taxpayer disputed. Upon review, the Tax Counsel Office (TCO) found that: 1) the taxpayer was liable for GST output tax at the 15 percent ...