- The Taxpayer, a company registered for GST, claimed input tax deductions for disputed periods.
- Customer & Compliance Services proposed to reassess the Taxpayer’s GST assessments, stating that the Taxpayer did not provide required records and evidence of a taxable activity.
- The main issues in the dispute were whether the Taxpayer met the requirements for input tax deductions and whether they carried on a taxable activity.
- The Tax Counsel Office decided that the Taxpayer did not meet the requirements for input tax deductions and was not carrying on a taxable activity.
- The onus of proof in civil proceedings is on the taxpayer, and the standard of proof is the balance of probabilities.
- To claim input tax deductions, the Taxpayer must satisfy documentation requirements, including providing tax invoices and showing a connection between payments and the supply of goods/services.
- The Taxpayer failed to provide tax invoices and evidence of acquiring goods/services, leading to the denial of input tax deductions.
- The Taxpayer also did not prove that they carried on a taxable activity continuously or regularly.
- As a result, the Taxpayer’s GST registration was retrospectively canceled, and they were unable to claim input tax deductions.
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.
