The Modern Zealand cable harness racing sector will benefit from a tax policy proposal, which will probably save thousands of dollars of the industry.
In a press release dated January 31, RT Hon Winston Peters announced the following and although the participants did not mention the cable harness racing code, they can be sure that this proposal will benefit investors in both racing codes.
Winston Peters has announced that the government is preparing the public consultation with GST political proposals that would make the Modern Zealand racing industry more competitive.
“The racing industry makes an critical economic contribution. Modern Zealand thoroughbreds are required as racing horses in overseas and for breeding. The domestic thoroughbred industry brought almost one billion dollars into the economy in 2022/23, ”says Peters.
Bloodstock breeders often come together in a joint venture when they invest in a thoroughbred and helps with the initial purchase price and the running costs.
According to Peters, common practice under joint ventures including Bloodstock Breeders is to utilize GST deductions individually in their own GST returns. However, the income from Germany recently came to the conclusion that the current rules do not allow this.
“To keep this, the breeders would incur compliance costs for the registration and submission of GST returns for every horse separately every month or every two months. The government suggests pursuing a pragmatic approach and avoiding that compliance costs are approved by current practice.
“If this proposal continues, the Modern Zealand industry will be launched with the Australian industry alike,” said Peters.
The consultation document is expected to be published in the coming months taxpolicy.ird.govt.nz.
To read the complete statement Click here
from Gräebnislink Media
