Lapsed consents and tax implications03 Dec 2014 |
The global financial crisis slowed the implementation of many consented developments around the Queenstown Lakes district. Over that period of inactivity many resource consents would have lapsed. The Inland Revenue Department (IRD) are now undertaking an investigation and have obtained information regarding lapsed consents from the Queenstown Lakes District Council. IRD is of the opinion that when the consent held by a company registered for GST lapsed, the party should have de-registered from GST. As a result companies or developers may now find themselves in the position where a payment to IRD is required as well as any resulting interest.
If you think this applies to you, or you have a lapsed resource consent and would like to investigate further then please don’t hesitate to contact Kerry O’Donnell in our property development team or Maree Baker-Galloway in our resource management team.