GST – input tax deduction and taxable activity

The Taxpayer is a company. It was registered for GST on a payment basis.
The Taxpayer claimed input tax deductions for the periods under dispute (disputedperiods).
Customer & Compliance Services, Inland Revenue (CCS) proposed to reassess the GSTassessments of the Taxpayer for the disputed periods, on the basis that the Taxpayerdid not provide the required records and documentation to allow for an input taxdeduction. CCS also considered that the Taxpayer did not provide sufficient evidenceto show that a taxable activity was being carried on.
CCS proposed to cancel the Taxpayer’s GST registration retrospectively.

Source: taxtechnical.ird.govt.nz

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