- Subdivision projects can be considered taxable activities for GST purposes
- A subdivision project is considered taxable when it is carried on continuously or regularly and involves making supplies to another person for consideration
- The determination of whether a subdivision project is continuous or regular is based on the number of lots created and sold, as well as the level of activity involved
- The scale of the subdivision and level of development work also play a role in determining if a subdivision project is a taxable activity
- Each case must be considered individually to determine if a subdivision project is a taxable activity
- Key terms include defining subdivision as dividing land into two or more parts or changing existing boundaries
- The policy statement “GST and subdivisions
- Court of Appeal decision in the Newman case” outlines the Commissioner of Inland Revenue’s position on this matter.
Source: taxtechnical.ird.govt.nz
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
