- New Zealand Inland Revenue issued a Technical Decision Summary on March 26
- Clarified zero-rating of GST, input tax deductions, and shortfall penalties
- Taxpayer claimed involvement in freight-forwarding and acting as an agent for overseas customers
- Customer and Compliance Services questioned the taxpayer’s input tax deductions and taxable activity
- Taxpayer sought clarification on GST zero percent rate and input tax deductions
- Tax Counsel Office found taxpayer not entitled to charge GST at zero percent or claim input tax deductions
- Taxpayer not carrying on a taxable activity
- Taxpayer liable for shortfall penalties due to gross carelessness
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.
