In a recent judgment made in the High Court of NZ, it has been determined that clubs are entitled to claim the GST input tax deductions for all stakes payments paid to GST registered trainers and riders for races conducted by that club.
Previously the Inland Revenue had only allowed these GST input tax deductions to be claimed if the owner of the stakes was GST registered.
The decision has confirmed that trainers and riders provide services to clubs on race days in consideration for a percentage of the stakes payment. Therefore, clubs are now entitled to claim GST input deductions for all stake payments made to all GST registered trainers and riders, whereas non-GST registered owners were previously unable to claim GST input deductions. Returns to non-GST registered owners will increase accordingly.
Follow the link below to see how you could benefit.
