GST Dispute: Input Tax Deductions, COVID-19 Payments, and Omitted Sale Decision Summary

• The document is a summary of a technical decision regarding GST input tax deductions, grants, and an omitted sale.
• The decision date is 28 March 2025, and the issue date is 12 June 2025.
• The taxpayer, a company registered for GST, claimed input tax deductions and received COVID-19 support payments.
• Customer and Compliance Services found some deductions unsupported and noted an omission of a sale in the GST return.
• Main issues included the validity of input tax deductions, whether output tax should be returned on COVID-19 payments, and the amendment of the GST return for the omitted sale.
• The Tax Counsel Office concluded that the input tax deductions were not allowed, output tax should be returned on COVID-19 payments, and the GST return should be amended to include the omitted sale.
• The onus of proof is on the taxpayer to demonstrate an assessment is incorrect.

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.

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