Generally, being business as usual arrangements, there are no negative impacts when everything is settled down. However, when the proposition is big, it pays to consult your advisor on how our complex tax laws, be they goods and services tax (GST) or income tax, may apply to your idea.
Recently we considered a straight forward customer voucher arrangement where the customer will be able to claim a discount on future purchases, based on the amount of current purchase. The questions concerned how and when the retailer would treat the discount. As to be expected, arriving at the destination is all the more satisfying when the journey has thrown up a few obstacles. In this case, we considered GST, and income tax, and worked out the essential tax nature of the proposed arrangement. At KPMG we have significant experience in all aspects of retail and are happy to talk to you when you need that input.