31 August 2017 Reversal of GST investigation assessment and refund of corrected GST
A husband and wife-based company came to us on a recommend from another client. They were travelling salespeople and had been investigated by Inland Revenue. After our initial conversations the clients realised that there now former Tauranga based accounting (chain) had no idea what should have been done. The Accountant simply yielded to Inland Revenue, recalculated GST returns and, having access to their bank account field and signed off on the adjusted GST returns and paid some $90000.00 extra in GST. That “accountant also told the clients that she did not want IRD looking at here files!
The community compliance officer who handled this @ IRD did so rather bullishly and recited case law and statute law, none of which were not even remotely relevant. The former accountant was oblivious to all of this.
This case saw us lodge a complaint to Inland Revenue on the handling of the matter, and we submitted lengthy and detailed reports as to why our position was correct and Inland Revenues was not.
IRD had penalised the GST claims over a motor home and disallowed same and roughly $120k had to be paid back incl penalties. AN extensive review to set the record straight was undertaken and this resulted in GST returns being refiled back to 01 April 2014. Our work and submissions based on extensive technical data and research was accepted by IRD and the bulk of the GST paid to IRD on the flawed investigation was refunded to the client.
All throughout this time the former accountant stated she was a tax expert.
This decision is now a precedent in similar cases.