Inland Revenue Gearing up for a Review of GST Registered Persons consistently receiving Refunds. Also, is that Subdivision Project a Taxable Activity for GST Purposes?

This week, Inland Revenue published a reminder aimed at tax agents that clients must have a taxable activity in order to be registered for GST.

The notice said if your client is filing regular GST refund returns with expenses consistently more than their income, it may suggest they are not carrying out a taxable activity or have errors in their GST returns.

Inland Revenue then notes that clients “may receive a letter if they have filed regular GST refund returns from registration.” Tax agents are advised to “please review the refund returns filed and if required take any necessary action”.

Source: www.interest.co.nz