Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Importer Loses $764,000 GST

Import News from the Importers Institute 7 October 2000 –

An importer is substantially out of pocket as a result of bad GST legislation.

The importer cleared container loads of National Geographic magazines, individually wrapped and pre-addressed. The containers went straight from the wharf to New Zealand Post for national distribution through the postal service. The importer never took possession of the magazines. His involvement was limited to arranging Customs clearance.

He paid GST to Customs on importation and claimed it back from the
Inland Revenue Department ("IRD"). Customs had earlier advised him that he would be entitled to those claims but, in 1992, the IRD decided to query their validity. Four years later, the IRD decided to disallow all claims, on the grounds that the importer did not acquire the magazines. The importer wrote a cheque for $764,329.13.

The importer then applied to Customs for a refund of the GST paid on importation. Customs declined the refund application and the matter went to the Customs Appeal Authority. Judge Barber ruled for Customs, saying "I accept that the prepaid magazines could have been dispatched as mail, but they were not. [...] It is up to the applicant to structure its business transactions in the best light for itself. If it fails to do that, then I can only treat matters as they were done and not as they might have been done."

The Importers Institute has previously pointed out that the law on the interaction between GST and imports is riddled with inconsistencies. The idea of paying GST to one department, only to have it refunded by another, was conceived by bureaucrats in turf protection mode. As usual, someone has to pay for these bureaucratic blunders - in this case, the bill went to the former agent of National Geographic.

* * *

Previous Import News items are published on our Internet site http://www.importers.org.nz. If you do not wish to be included in this mailing list, please reply to this message with the word REMOVE in the subject line. If you would like us to send Import News to friends or associates, please ask them to email info@importers.org.nz with the word SUBSCRIBE in the subject line.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>