CA ANZ supports Inland Revenue’s draft interpretation statement on secondhand goods input tax deductions, commending its clarity, structure, and practical use of examples. The statement effectively explains eligibility criteria under the GST Act 1985, including general input tax rules, specific requirements for secondhand goods, exclusions, associated person rules, and record-keeping obligations.

CA ANZ suggests refinements to improve accessibility and technical precision. It recommends clearer distinction between “goods situated in New Zealand” (a factual test for deduction eligibility) and “supply made in New Zealand” (a legal concept for GST liability). It also proposes including an example involving staged payments for a family bach, illustrating the treatment of associated versus non-associated transactions.

Additional clarification is sought on collectible coins, confirming they are not treated as “money” when acquired for numismatic value. 

CA ANZ values the inclusion of Fact Sheets but recommends expanding examples to cover complex associated-person and mixed-use scenarios. Overall, the draft is a valuable resource, with targeted improvements enhancing certainty for taxpayer.