You and GST On Your Real Estate Transactions
Despite all the form filling required to record GST outputs (income) and inputs (expenses) moving through business affairs, GST is basically a very simple tax. Unfortunately it becomes complex around the edges of the few items which are excluded from its claws by being exempt, zero rated, or charged at a non-standard rate. Whether ‘IN or OUT’ often raises complex issues of interpretation, and hence a large number of cases fall to be considered by the Courts, with a very substantial proportion relating to real estate transactions.
Undoubtedly this arises from the generally large monetary value of each transaction, the consequent funding issues if GST is involved, and the wide variety of uses which may be made of real estate.
Consequently, extreme care must be taken by all parties in conducting their negotiation of the terms of the contract. Professional advice should be sought before contracts are signed.
See attached booklet published by Kendons Chartered Accountants Limited for further information.
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