Can a company claim GST on the preparation of employees’ income tax returns?
Generally, no. GST incurred on the preparation of employees’ personal income tax returns is usually not claimable as it is regarded as a personal benefit provided to the employee.
Why is GST on employees’ income tax return preparation not claimable?
The preparation of an employee’s income tax return is generally considered to have no close nexus to the business and is treated as a personal expense of the employee for GST purposes.
Can GST be claimed on the preparation of IR8A or IR8S forms?
Yes. GST incurred on the preparation of IR8A, IR8S and related appendices is generally claimable, as these forms are part of the employer’s statutory obligations.
Why is there a difference in GST treatment?
IR8A and IR8S forms are the responsibility of the employer, whereas personal income tax returns are regarded as personal obligations of the employee.
