- The Inland Revenue clarified GST output tax deductions for indemnity payments and shortfall penalties.
- A company made a payment to a tenant for failing to make building alterations.
- The company sought clarification on GST output tax deduction for the payment and the application of a shortfall penalty.
- The Tax Counsel Office found that the company wasn’t entitled to claim a deduction from output tax for GST.
- The Tax Counsel Office found that the company wasn’t liable for a shortfall penalty.
Source: news.bloombergtax.com
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.
