Employer Bulletin | 16 September 2024
- Sep 16, 2024
- 1 min read
Inland Revenue can begin processing GST returns for businesses affected by a historic legislative drafting error, Revenue Minister Simon Watts says.
“Inland Revenue has become aware of a legislative drafting error in the GST adjustment rules after changes were made in 2023 which were meant to simplify the process. This error prevents taxpayers who acquired an asset before April 2023 from using the simplified one-step adjustment calculation when there was a permanent change of use for that asset.
“At a time when things are tough, this error is preventing Inland Revenue from paying out GST refunds to more than 350 taxpayers, totalling approximately $30 million.”
Cabinet has agreed to a proposal to remedy this problem which has been included in the Taxation (Annual Rates for 2024-25, Emergency Response, and Remedial Measures) Bill which had its first reading on 29 August. This will have retrospective effect.
“Cabinet has therefore agreed to allow Inland Revenue to process GST returns for affected businesses in the interim until that bill becomes law. I recommended an Order in Council be made to put that into effect and that was signed by the Governor General yesterday.”
If you have any questions, about this case or other employment relation matters, call the Advice Line team on 0800 800 362.
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