Registration

Question 1

Most of you will be aware that there are two types of GST registration, essentially __________ or involuntary.

Answer 1

voluntary

Question 2

Most of you will be aware that there are two types of GST registration, essentially voluntary or __________.

Answer 2

involuntary

Question 3

the latter requiring you to register for GST if:
• for the __________ and the preceding 11 months your supplies have exceed the $60k registration threshold (unless they are not expected to for the coming 12 month period); or,
• for the ______________ and the following 11 month period, you expect your supplies will exceed the $60k registration threshold.

Answer 3

current month

Question 4

the latter requiring you to register for GST if:
• for the current month and the ______________ your supplies have exceed the $60k registration threshold (unless they are not expected to for the coming 12 month period); or,
• for the current month and the following 11 month period, you expect your supplies will exceed the $60k registration threshold.

Answer 4

preceding 11 months

Question 5

the latter requiring you to register for GST if:
• for the current month and the preceding 11 months your supplies have exceed the $60k registration threshold (unless they are not expected to for the coming 12 month period); or,
• for the current month and the ______________ period, you expect your supplies will exceed the $60k registration threshold.

Answer 5

following 11 month period

Question 6

the latter requiring you to register for GST if:
• for the current month and the preceding 11 months your supplies have exceed the $60k registration threshold (unless they are not expected to for the coming 12 month period); or,
• for the current month and the following 11 month period, you expect your supplies will exceed the _________________.

Answer 6

$60k registration threshold

Question 7

Naturally the Commissioner always has the benefit of __________, and where you have failed to register at a time required under either of the aforementioned tests, then your registration can be backdated to the appropriate date. It should be noted that under the legislation, the Commissioner can permit a later registration date where she considers it is equitable to do so, however this discretion is rarely applied.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 7

hindsight

Question 8

Naturally the Commissioner always has the benefit of hindsight, and where you have failed to register at a time required under either of the aforementioned tests, then your registration can be backdated to the appropriate date. It should be noted that under the legislation, the Commissioner can permit a later registration date where she considers it is equitable to do so, however this discretion is rarely applied.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 8

backdated

Question 9

Naturally the Commissioner always has the benefit of hindsight, and where you have failed to register at a time required under either of the aforementioned tests, then your registration can be backdated to the appropriate date. It should be noted that under the legislation, the Commissioner ______ permit a later registration date where she considers it is equitable to do so, however this discretion is rarely applied.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 9

can

Question 10

Naturally the Commissioner always has the benefit of hindsight, and where you have failed to register at a time required under either of the aforementioned tests, then your registration can be backdated to the appropriate date. It should be noted that under the legislation, the Commissioner can ______________ where she considers it is equitable to do so, however this discretion is rarely applied.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 10

permit a later registration date

Question 11

Naturally the Commissioner always has the benefit of hindsight, and where you have failed to register at a time required under either of the aforementioned tests, then your registration can be backdated to the appropriate date. It should be noted that under the legislation, the Commissioner can permit a later registration date where she considers it is _____________, however this discretion is rarely applied.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 11

equitable to do so

Question 12

Naturally the Commissioner always has the benefit of hindsight, and where you have failed to register at a time required under either of the aforementioned tests, then your registration can be backdated to the appropriate date. It should be noted that under the legislation, the Commissioner can permit a later registration date where she considers it is equitable to do so, however this discretion is _____________.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 12

rarely applied

Question 13

When it comes to a situation of a person registering for GST on a ____________, usually the effective date is a prospective one to the date the registration application was filed. While SPS 18/03 suggests that “in very limited circumstances” a retrospective effective registration date will be permitted, our practical experience would suggest that IR is in fact quite generous with this discretion, provided that no more than 6 months backdating has been requested.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 13

voluntary basis

Question 14

When it comes to a situation of a person registering for GST on a voluntary basis, usually the effective date is a prospective one to the date the registration application was filed. While __________ suggests that “in very limited circumstances” a retrospective effective registration date will be permitted, our practical experience would suggest that IR is in fact quite generous with this discretion, provided that no more than 6 months backdating has been requested.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 14

SPS 18/03

Question 15

When it comes to a situation of a person registering for GST on a voluntary basis, usually the effective date is a prospective one to the date the registration application was filed. While SPS 18/03 suggests that “_____________” a retrospective effective registration date will be permitted, our practical experience would suggest that IR is in fact quite generous with this discretion, provided that no more than 6 months backdating has been requested.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 15

in very limited circumstances

Question 16

When it comes to a situation of a person registering for GST on a voluntary basis, usually the effective date is a prospective one to the date the registration application was filed. While SPS 18/03 suggests that “in very limited circumstances” a retrospective effective registration date will be permitted, our practical experience would suggest that IR is in fact quite generous with this discretion, provided that no more than 6 months backdating has been requested.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 16

quite generous

Question 17

When it comes to a situation of a person registering for GST on a voluntary basis, usually the effective date is a prospective one to the date the registration application was filed. While SPS 18/03 suggests that “in very limited circumstances” a retrospective effective registration date will be permitted, our practical experience would suggest that IR is in fact quite generous with this discretion, provided that no more than _______________ has been requested.

https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 17

6 months backdating

Question 18

The reason behind the comment “in very limited circumstances”, is because unlike income tax deductions where the timing of the claim in the correct income year is ______, an input tax deduction can simply be claimed in any later GST return period (within the automatic statutory time limit of 2 years, potentially extended to 8 years), with the main proviso being that the amount has not been claimed already in an earlier return period. Due to the flexibility of the claiming rules therefore, the Commissioner is more likely to set a prospective registration effective date, where the person is applying for a retrospective date simply to ensure they do not miss out on a potential input tax claim.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 18

very rigid

Question 19

The reason behind the comment “in very limited circumstances”, is because unlike income tax deductions where the timing of the claim in the correct income year is very rigid, an ____________ can simply be claimed in any later GST return period (within the automatic statutory time limit of 2 years, potentially extended to 8 years), with the main proviso being that the amount has not been claimed already in an earlier return period. Due to the flexibility of the claiming rules therefore, the Commissioner is more likely to set a prospective registration effective date, where the person is applying for a retrospective date simply to ensure they do not miss out on a potential input tax claim.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 19

input tax deduction

Question 20

The reason behind the comment “in very limited circumstances”, is because unlike income tax deductions where the timing of the claim in the correct income year is very rigid, an input tax deduction can simply be claimed in ______________ (within the automatic statutory time limit of 2 years, potentially extended to 8 years), with the main proviso being that the amount has not been claimed already in an earlier return period. Due to the flexibility of the claiming rules therefore, the Commissioner is more likely to set a prospective registration effective date, where the person is applying for a retrospective date simply to ensure they do not miss out on a potential input tax claim.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 20

any later GST return period

Question 21

The reason behind the comment “in very limited circumstances”, is because unlike income tax deductions where the timing of the claim in the correct income year is very rigid, an input tax deduction can simply be claimed in any later GST return period (within the ____________ of 2 years, potentially extended to 8 years), with the main proviso being that the amount has not been claimed already in an earlier return period. Due to the flexibility of the claiming rules therefore, the Commissioner is more likely to set a prospective registration effective date, where the person is applying for a retrospective date simply to ensure they do not miss out on a potential input tax claim.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 21

automatic statutory time limit

Question 22

The reason behind the comment “in very limited circumstances”, is because unlike income tax deductions where the timing of the claim in the correct income year is very rigid, an input tax deduction can simply be claimed in any later GST return period (within the automatic statutory time limit of ___________, potentially extended to 8 years), with the main proviso being that the amount has not been claimed already in an earlier return period. Due to the flexibility of the claiming rules therefore, the Commissioner is more likely to set a prospective registration effective date, where the person is applying for a retrospective date simply to ensure they do not miss out on a potential input tax claim.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 22

of 2 years

Question 23

The reason behind the comment “in very limited circumstances”, is because unlike income tax deductions where the timing of the claim in the correct income year is very rigid, an input tax deduction can simply be claimed in any later GST return period (within the ________________________, potentially extended to 8 years), with the main proviso being that the amount has not been claimed already in an earlier return period. Due to the flexibility of the claiming rules therefore, the Commissioner is more likely to set a prospective registration effective date, where the person is applying for a retrospective date simply to ensure they do not miss out on a potential input tax claim.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 23

the automatic statutory time limit of 2 years

Question 24

The reason behind the comment “in very limited circumstances”, is because unlike income tax deductions where the timing of the claim in the correct income year is very rigid, an input tax deduction can simply be claimed in any later GST return period (within the automatic statutory time limit of 2 years, potentially extended to __________), with the main proviso being that the amount has not been claimed already in an earlier return period. Due to the flexibility of the claiming rules therefore, the Commissioner is more likely to set a prospective registration effective date, where the person is applying for a retrospective date simply to ensure they do not miss out on a potential input tax claim.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 24

8 years

Question 25

The reason behind the comment “in very limited circumstances”, is because unlike income tax deductions where the timing of the claim in the correct income year is very rigid, an input tax deduction can simply be claimed in any later GST return period (within the automatic statutory time limit of 2 years, potentially extended to 8 years), with the main proviso being that the amount has not been claimed already in an earlier return period. Due to the flexibility of the claiming rules therefore, the Commissioner is more likely to set a prospective registration effective date, where the person is applying for a retrospective date simply to ensure they do not _________ a potential input tax claim. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 25

miss out on

Question 26

The reason behind the comment “in very limited circumstances”, is because unlike income tax deductions where the timing of the claim in the correct income year is very rigid, an input tax deduction can simply be claimed in any later GST return period (within the automatic statutory time limit of 2 years, potentially extended to 8 years), with the main proviso being that the amount has not been claimed already in an earlier return period. Due to the flexibility of the claiming rules therefore, the Commissioner is more likely to set a prospective registration effective date, where the person is applying for a retrospective date simply to ensure they do not miss out on a ______________. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 26

potential input tax claim

Question 27

The most common scenarios we encounter with respect to retrospective effective GST registration dates, is when dealing with _____________, and attempts by the purchasing party to ensure the transaction is subject to the compulsory zero-rating legislative provisions, a core requirement of which is that both parties to the transaction are GST registered at settlement date. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 27

land transactions

Question 28

The most common scenarios we encounter with respect to retrospective effective GST registration dates, is when dealing with land transactions, and attempts by the purchasing party to ensure the transaction is subject to the ________________ legislative provisions, a core requirement of which is that both parties to the transaction are GST registered at settlement date. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 28

compulsory zero-rating

Question 29

The most common scenarios we encounter with respect to retrospective effective GST registration dates, is when dealing with land transactions, and attempts by the purchasing party to ensure the transaction is subject to the compulsory zero-rating _____________, a core requirement of which is that both parties to the transaction are GST registered at settlement date. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 29

legislative provisions

Question 30

The most common scenarios we encounter with respect to retrospective effective GST registration dates, is when dealing with land transactions, and attempts by the purchasing party to ensure the transaction is subject to the __________________, a core requirement of which is that both parties to the transaction are GST registered at settlement date. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 30

compulsory zero-rating legislative provisions

Question 31

The most common scenarios we encounter with respect to retrospective effective GST registration dates, is when dealing with land transactions, and attempts by the purchasing party to ensure the transaction is subject to the compulsory zero-rating legislative provisions, a core requirement of which is that both parties to the transaction are ____________ at settlement date. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 31

GST registered

Question 32

The most common scenarios we encounter with respect to retrospective effective GST registration dates, is when dealing with land transactions, and attempts by the purchasing party to ensure the transaction is subject to the compulsory zero-rating legislative provisions, a core requirement of which is that both parties to the transaction are GST registered at _______________. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 32

settlement date

Question 33

The most common scenarios we encounter with respect to retrospective effective GST registration dates, is when dealing with land transactions, and attempts by the purchasing party to ensure the transaction is subject to the compulsory zero-rating legislative provisions, a core requirement of which is that both parties to the transaction are ___________________. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 33

GST registered at settlement date

Question 34

When considering applications of this nature, SPS 18/03 states that the Commissioner must be satisfied that __________ will be treating the transaction consistently for GST purposes. Consequently, she will expect to see that the requirements of s.78F of the GST Act have been dealt with adequately in the agreement for sale and purchase – usually a statement by the purchasing party that they expect to be a GST registered person, at or before settlement date. SPS 18/03 also provides further narrative on other potential issues with respect to land transactions that may arise if a request for retrospective registration is granted. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 34

both parties

Question 35

When considering applications of this nature, SPS 18/03 states that the Commissioner must be satisfied that both parties will be _______________ consistently for GST purposes. Consequently, she will expect to see that the requirements of s.78F of the GST Act have been dealt with adequately in the agreement for sale and purchase – usually a statement by the purchasing party that they expect to be a GST registered person, at or before settlement date. SPS 18/03 also provides further narrative on other potential issues with respect to land transactions that may arise if a request for retrospective registration is granted. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 35

treating the transaction

Question 36

When considering applications of this nature, SPS 18/03 states that the Commissioner must be satisfied that both parties will be treating the transaction ________________. Consequently, she will expect to see that the requirements of s.78F of the GST Act have been dealt with adequately in the agreement for sale and purchase – usually a statement by the purchasing party that they expect to be a GST registered person, at or before settlement date. SPS 18/03 also provides further narrative on other potential issues with respect to land transactions that may arise if a request for retrospective registration is granted. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 36

consistently for GST purposes

Question 37

When considering applications of this nature, SPS 18/03 states that the Commissioner must be satisfied that both parties will be ___________________________________. Consequently, she will expect to see that the requirements of s.78F of the GST Act have been dealt with adequately in the agreement for sale and purchase – usually a statement by the purchasing party that they expect to be a GST registered person, at or before settlement date. SPS 18/03 also provides further narrative on other potential issues with respect to land transactions that may arise if a request for retrospective registration is granted. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 37

treating the transaction consistently for GST purposes

Question 38

When considering applications of this nature, SPS 18/03 states that the Commissioner must be satisfied that both parties will be treating the transaction consistently for GST purposes. Consequently, she will expect to see that the requirements of s___________ of the GST Act have been dealt with adequately in the agreement for sale and purchase – usually a statement by the purchasing party that they expect to be a GST registered person, at or before settlement date. SPS 18/03 also provides further narrative on other potential issues with respect to land transactions that may arise if a request for retrospective registration is granted. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 38

s.78F

Question 39

When considering applications of this nature, SPS 18/03 states that the Commissioner must be satisfied that both parties will be treating the transaction consistently for GST purposes. Consequently, she will expect to see that the requirements of s.78F of the GST Act have been dealt with adequately in the ________________________ – usually a statement by the purchasing party that they expect to be a GST registered person, at or before settlement date. SPS 18/03 also provides further narrative on other potential issues with respect to land transactions that may arise if a request for retrospective registration is granted. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 39

agreement for sale and purchase

Question 40

When considering applications of this nature, SPS 18/03 states that the Commissioner must be satisfied that both parties will be treating the transaction consistently for GST purposes. Consequently, she will expect to see that the requirements of s.78F of the GST Act have been dealt with adequately in the agreement for sale and purchase – ______________________ that they expect to be a GST registered person, at or before settlement date. SPS 18/03 also provides further narrative on other potential issues with respect to land transactions that may arise if a request for retrospective registration is granted. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 40

usually a statement by the purchasing party

Question 41

When considering applications of this nature, SPS 18/03 states that the Commissioner must be satisfied that both parties will be treating the transaction consistently for GST purposes. Consequently, she will expect to see that the requirements of s.78F of the GST Act have been dealt with adequately in the agreement for sale and purchase – usually a statement by the purchasing party ______________________________, at or before settlement date. SPS 18/03 also provides further narrative on other potential issues with respect to land transactions that may arise if a request for retrospective registration is granted. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 41

that they expect to be a GST registered person

Question 42

When considering applications of this nature, SPS 18/03 states that the Commissioner must be satisfied that both parties will be treating the transaction consistently for GST purposes. Consequently, she will expect to see that the requirements of s.78F of the GST Act have been dealt with adequately in the agreement for sale and purchase – usually a statement by the purchasing party that they expect to be a GST registered person, ________________. SPS 18/03 also provides further narrative on other potential issues with respect to land transactions that may arise if a request for retrospective registration is granted. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 42

at or before settlement date

Question 43

When considering applications of this nature, SPS 18/03 states that the Commissioner must be satisfied that both parties will be treating the transaction consistently for GST purposes. Consequently, she will expect to see that the requirements of s.78F of the GST Act have been dealt with adequately in the agreement for sale and purchase – usually a statement by the purchasing party _______________________________________. SPS 18/03 also provides further narrative on other potential issues with respect to land transactions that may arise if a request for retrospective registration is granted. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 43

that they expect to be a GST registered person, at or before settlement date

Question 44

When considering applications of this nature, SPS 18/03 states that the Commissioner must be satisfied that both parties will be treating the transaction consistently for GST purposes. Consequently, she will expect to see that the requirements of s.78F of the GST Act have been dealt with adequately in the agreement for sale and purchase – usually a statement by the purchasing party that they expect to be a GST registered person, at or before settlement date. ______ also provides further narrative on other potential issues with respect to land transactions that may arise if a request for retrospective registration is granted. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 44

SPS 18/03

Question 45

Finally, when it comes to voluntary registration, IR will not grant a request for registration (although from practical experience we know they usually do ________________ and its only as a result of a subsequent review that the hot tap is turned on) unless they are satisfied the person is actually carrying on a taxable activity. Interestingly in this regard, it is often about you proving your intention. I say “interestingly” because when I was a young fellow in my early years of my working life (admittedly some time ago now!), both at the Revenue and then having changed sides to greener pastures, everything was about a persons stated verbal intentions, and the exposure to being “hung” just by a slip of the tongue as to your real plans. Times have certainly changed however, and frequently what you say is often never enough on its own, without some hard objective evidence to back you up. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 45

automatically

Question 46

Finally, when it comes to voluntary registration, IR will not grant a request for registration (although from practical experience we know they usually do automatically and its only as a result of a subsequent review that the hot tap is turned on) unless they are satisfied the person is actually _________________. Interestingly in this regard, it is often about you proving your intention. I say “interestingly” because when I was a young fellow in my early years of my working life (admittedly some time ago now!), both at the Revenue and then having changed sides to greener pastures, everything was about a persons stated verbal intentions, and the exposure to being “hung” just by a slip of the tongue as to your real plans. Times have certainly changed however, and frequently what you say is often never enough on its own, without some hard objective evidence to back you up. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 46

carrying on a taxable activity

Question 47

Finally, when it comes to voluntary registration, IR will not grant a request for registration (although from practical experience we know they usually do automatically and its only as a result of a subsequent review that the hot tap is turned on) unless they are satisfied the person is actually carrying on a taxable activity. Interestingly in this regard, it is often about you _________________. I say “interestingly” because when I was a young fellow in my early years of my working life (admittedly some time ago now!), both at the Revenue and then having changed sides to greener pastures, everything was about a persons stated verbal intentions, and the exposure to being “hung” just by a slip of the tongue as to your real plans. Times have certainly changed however, and frequently what you say is often never enough on its own, without some hard objective evidence to back you up. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 47

proving your intention

Question 48

Finally, when it comes to voluntary registration, IR will not grant a request for registration (although from practical experience we know they usually do automatically and its only as a result of a subsequent review that the hot tap is turned on) unless they are satisfied the person is actually carrying on a taxable activity. Interestingly in this regard, it is often about you proving your intention. I say “interestingly” because when I was a young fellow in my early years of my working life (admittedly some time ago now!), both at the Revenue and then having changed sides to greener pastures, everything was about a persons stated verbal intentions, and the exposure to being “hung” just by a slip of the tongue as to your real plans. Times have certainly changed however, and frequently what you say is often never enough on its own, without some _______________ to back you up. https://gilligansheppard.co.nz/richards-tax-updates-august-2/

Answer 48

hard objective evidence