What is leaking more Apartment buildings or Body Corporates (BC)?

[Davo36]

So you're arguing for more taxes to be paid by body corporates because individual house owners have to pay that particular tax.

Why on earth anyone, anywhere, anytime, would argue for more taxes is beyond me.

[speights boy]

So you're arguing for more taxes to be paid by body corporates because individual house owners have to pay that particular tax.

More taxes ?
More than they pay now ?
Nope.

They pay it now.
No change.
Not more.....the SAME as they do now.

They are private owners....SAME as the house next door.

[Davo36]

More taxes ?
More than they pay now ?
Nope.

They pay it now.
No change.
Not more.....the SAME as they do now.

They are private owners....SAME as the house next door.

Well you can lead a horse to water...

[speights boy]

Yep.
Aston is drinking from the same waterhole as myself.
I note you haven't argued any of his points Davo....

[Aston]

Because B.Cs are not able to be GST registered, they will not be paying “more” tax.

As I see it, they will be paying the correct amount of tax. Ie. The same tax that is required of everybody else in the Country.

If B.Cs could become GST registered, then they could be paying less tax than others.

Is that fair..? I don’t think so.

[Davo36]

You seem to be missing the point that up until now BC's have been able to be registered for GST.

And so many of them are.

[Aston]

Well I see that as an anomaly. which has now been corrected.

[Davo36]

Well, perhaps this explains it better:http://www.nzherald.co.nz/business/n...ectid=11269391

GST law change slammed as tax grab

But the situation changes with leaky buildings.

Where a body corporate receives a compensation payment and uses it to finance remedial work (the hefty bills for which include GST), if it is registered it is able to claim back the GST. Robin Oliver of tax consultants OliverShaw, a former deputy commissioner of Inland Revenue in charge of tax policy, said that was the right outcome.

The Government has already received GST when the original faulty work was done. If the repair work was done by the original builders it would not get a second bite of the cherry, whereas under the IRD's traditional position, which the Government now intends to legalise, it does. That is double taxation and confiscation, Oliver said.

NsaTax director Graeme Carruthers said he has a body corporate client which is going to be spending $17 million on leaky building repairs. In effect its repair bill had just increased by $2 million.

GST consultant Alastair McKenzie objects to what he sees as the biased and tendentious consultation document the IRD released yesterday.

It fails to address or even acknowledge submissions the IRD has received which concurred with its chief tax counsel's view of the law, McKenzie said.

So, well anyway, the IRD want the money, a bunch of tax advisors say it's basically stealing by legislation. And SB and Aston think more taxes is a good thing.

[Aston]

And SB and Aston think more taxes is a good thing.

I think if you check my posts Davo, nowhere have I stated that I " think more taxes is a good thing."

I do however think that the law should be fair for all. It is now because all are being treated equally.

You forgot to quote this Davo.

"The sector has wanted some clarity. Just as there will be some who are disappointed with the position, there will be tens of thousands of others who own residential property in apartment blocks who will be happy with this decision and I think homeowners through the country will see that those who live in apartments are being treated the same as those in houses."

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11269391

[Davo36]

there will be tens of thousands of others who own residential property in apartment blocks who will be happy with this decision

How on earth can this be the case?

How can an apartment owner in a building be happy that their body corporate is now not able to claim GST? Where is the upside in this for an apartment owner??? IRD in lala land man.

Aston, no you didn't say you wanted more taxes, but by saying that you think body corporates should have to pay more tax (because they can't claim back GST) is a good thing, it's the same thing in my view.

But the larger point is that it's not a simple thing. What about buildings where there are a few shops, some offices and some residential? How is that going to work?

[speights boy]

For buildings solely made up of private residential apartments, why are some Body Corp GST registered ?