By ELLEN READ
Business owners are entitled to charge government departments fees for collecting and handling GST, says a Tauranga businessman.
He has been invoicing IRD a 15 per cent handling fee on his GST returns for more than 2 1/2 years and says he has not been challenged. He writes
clearly on the forms what he is deducting and why.
"I got p'ed off working for them for nothing so on a GST return I said I wanted a copy of the laws saying I could not deduct a handling fee."
The businessman also asked for a copy of Government legislation showing that citizens had to work for it for free, which is how he views the GST work.
"The IRD have never questioned me on it so as far as I take it they've agree to a contract."
He does the same on his PAYE returns, without official complaint.
The man said he was not refusing to handle or collect the taxes, but wanted to be paid for the time it took him to do so.
He pointed out that if he passed the work on to an accountant he would be entitled to claim expenses.
"I think all business owners should do it."
The IRD was not aware of this case but said there was no provision in law for a business owner to deduct a handling fee on GST payments.
The department said it would be surprising if someone had alerted it that he or she was altering tax forms and had not been contacted to sort the matter out.
