The important GST policy issues…   Leave a comment

IRD Policy have just released their updated work programme for 2010 / 2011.

I understand they will consider submissions from anyone who feels there are other more pressing tax policy considerations.

Here’s what they have in the policy pipeline for GST:

– June 2011: a consultative paper will be issued on the zero rating of immigration services provided to non-residents.

– Sometime after June 2011 IRD will respond to a “questions we’ve been asked” on the value of consideration in a matrimonial/relationship property agreement.

– At a date yet to be determined IRD will respond to a “questions we’ve been asked” on whether a non-profit body needs to conduct a taxable activity and make supplies in the course of that activity to claim input tax credits.

I’m not sure why the GST treatment of immigration services is suddenly so complex that the best GST brains in the IRD need to be working on it but I guess someone must have concerns.

I’m also not sure why so much time needs to go into the relationship property and non-profit bodies issues mentioned.

There are perhaps other GST policy issues which could do with some attention. If you can think of any I suggest you get in touch with the IRD.

Perhaps they could include:

– the policy implications of removing GST from fresh fruit and vegetables (a Labour Party election policy). Surely it would help us all make a decision if we had some objective information from the experts?
– the extent to which non-profit bodies can treat payments received from customers to attend fundraising events such as concerts and dinners as “exempt” from GST. This is particularly pertinent at the moment given the large number of such events occurring around the country for Christchurch.
– how the rules for payment of GST to Customs on imports by registered businesses can be improved to remove the unnecessary bureaucracy and cost involved in paying Customs and then claiming back from the IRD.

Just three for starters.

Iain

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