Cost of Bloodstock and GST Invoicing for Syndicates: IRD Consultation
28 June 2021
By John Mooney
For the last few years, the national equine bloodstock taxation group has enjoyed constructive engagement with the IRD. I represent NZSBA and HRNZ on the group.
Below are links to two draft Questions We’ve Been Asked that the IRD is proposing to consult on in late July. QWBA provide policy advice and practice.
They are interested in getting feedback from the industry on the following specific matters (click headings to go to IRD documents):
A. Breeders: How do you determine the cost price of bloodstock in your trading account?
- Are the examples provided in the QWBA realistic and assist understanding?
- Are there any scenarios that have been missed?
B. GST Invoice for Syndicates – the purchase of bloodstock by multiple purchasers is a single supply and only one tax invoice will be issued
- What are the issues in practice?
- What questions do you have?
- This may be relevant to the situation where the syndicate is a racing only syndicate (and not registered for GST) and an individual is attempting to register in order to claim an input tax credit for the racing activity.
The IRD would really like to get these documents finalised for public consultation ASAP.
This being so, I would like any feedback returned to me by Sunday 11 July 2021. Please feel free to include your accountant.
021 614 190
Your assistance in this matter is appreciated.