INSIDE THIS EDITION Take a break 1 Deductibility of Healthy Homes costs 2 Purchase price allocations 3 What is revenue? 3 Snippets 4 Accounting for COVID-19 4 FBT on vehicles during lockdown 4 Take a break In the months since the peak of COVID-19, the stringent restrictions have been relaxed and the majority of us have returned to a ‘new normal’. What this looks like from business to business is likely to be quite different, with some returning to the office full-time and others continuing to work remotely. Whichever the case, the disruption of COVID-19 is sure to have impacted employee morale one way or another. It is not uncommon for morale to take a dive as the mid-year lull takes effect.
On 26 June, Inland Revenue (IRD) released Interpretation Statement 20/05. The statement describes how GST applies to the sale of a dwelling that is included within a wider supply of land. A common example that the statement applies to is the sale of a farm that comprises both farmland and a farmhouse. The generic GST treatment in this situation is for the farmland to be zero-rated, while the farmhouse is treated as an exempt supply. This treatment arises pursuant to section 5(15) of the GST Act, which splits off the farmhouse and deems it to be a separate supply. It comprises an exempt supply because it is either the sale of the ‘family home’ or akin to the sale of a residential rental
