I'm no lover of tax or Dunne, and I've not read the discussion document, but from this summary can see what his intent is, and on this one, assuming GST as a given, I think this a good idea.

For every accountant who has gained a timing advantage via differing accounting treatments for GST, there is one who gets innocently caught out. Personally I find the timing issues involved with GST and the invoice basis fraught with pitfalls and simply a pain (read waste of my time) - For GST full stop, I've never understood why IRD constantly proffer the invoice basis over the payments basis as the preferred option. A payments basis is superior in that neither the taxpayer, or the Government, can ever be caught out or disadvantaged by timing differences: you pay the GST only when you've received it, or vice versa. Just about all administrative problems surrounding GST concern time of supply.

And the sale from one associated company to another and then liquidating the vendor without paying the GST is straight our evasion, and means 'I' will never get a tax cut because I'm paying for the ones who do that. Though that was never a 'loophole' , it was simply a rort/evasion, but good to close it up.

... quickly reading the above ... mmm, they're putting the onus on the buyer to pay the vendor's GST, not sure I like that, but it is possibly the only way to get around the 'dump the vendor' company rort (payments basis wouldn't fix that). I've got this fear there are going to be some innocent buyers unfairly caught out, but will have to read the detail. Probably the lawyers will have a few sleepless nights with it, but that's the nature of our ludicrously complex taxing legislation: it's so easily to innocently get wrong via omission, and then the IRD, the employees of which take no risk at all everyday they go to work, try to clobber you back to the finances you had with your post bank account at primary school (Nanny State, she truly is a heartless bitch).

Anyway :) overall, if you've got to have a GST, then on a first look, I like this proposal. Those who have made a habit out of getting the timing advantage to work for them, won't.

Roger,

I'm hoping Bill is focussing on the negative gearing credit tax rort. That seems to be the indications from the press releases. Who knows though, I certainly wont get too hopeful. But it is reaching the point where a) opinion in the media and larger parts of the populace is in favour of clamping down on the ppty bubble AND b) the economy is in such a state that there may be no choice given the negative impact rampant ppty investing has on the economy.

On a purely personal note, and indeed gratuitously, I would like to record that Peter Dunne is the most irritating politican in the last 20 years. At least Alamein Kopu didn't show up to be annoying.

nick off , Nike . Your dunk is sunk . Basically , you stunk . De-bunk , punk !

Who is this Peter guy?

How about politicians look in the mirror and stop their own rorts....Bill English housing, Hone Harawira Paris, Rodney Hide and Mrs 50K trip...Chris Carter and partner 80K travel in 6months etc etc

SPI=selfish politicians indeed!

Yep I'm still 28, simon37

Interesting.

No GST on housing or on interest but GST is charged on food and clothing.

Give the bankers credit for creating a system that works in their favour.

When buy a property or enter into any kind of transactions with property developers, we would recommend that you do it through the legal and right channel.