Skip to content

CAP 136
Category: Expense intelligence
Business Goal: BG-003 — Intelligent financial assistant; BG-009 — Automate everything; BG-011 — License the platform
System Domain: SD06 — Snowflake Analytics & Risk Platform
Satisfying Module: MOD-092 Tax logic engine (module in design)

Description

Sole traders and SMEs receive real-time GST (NZ) or GST/BAS (AU) computation across their classified business transactions. The system knows which expenses are fully claimable, which are 50% entertainment, and which are non-claimable under NZ and AU rules. At the end of each GST period, a pre-filled return is available for one-click review and filing (via IRD gateway or ATO SBR2 in Phase 3; via Xero/MYOB in Phase 2).

This capability eliminates the "periodic accounting cleanup session" for sole traders and property investors. The tax return is an ongoing running total, not a retrospective exercise.

NZ GST rules encoded

  • Standard rate: 15%
  • Entertainment deductibility cap: 50% for food, beverages, and social entertainment (ss CW 28–CW 52, Income Tax Act 2007)
  • Commute costs: non-deductible
  • Residential rental: exempt supply (no GST in or out)
  • Commercial rental: taxable supply
  • Capital items: input tax credit on acquisition; disposal rules apply

AU GST / BAS rules encoded

  • Standard rate: 10%
  • Input-taxed supplies (residential rent): no credits
  • Entertainment meal limit: 50% employer meal benefit rules
  • Motor vehicle log book method support
  • Instant asset write-off flagging (amount threshold versioned annually)

Outputs

  • Running GST liability / credit balance by period
  • Pre-filled GST return (NZ: GST101A boxes; AU: BAS G-series fields)
  • Provisional tax estimate (NZ sole traders: residual income > $5,000 threshold)
  • One-click export to Xero (Phase 2) or direct IRD/ATO lodgement (Phase 3)

Compliance note

Tax rules are encoded as a versioned rule set. Any change to IRD or ATO rules (e.g. entertainment deductibility adjustment, new threshold) is a rule-set version update, not a code change. The system retains the rule set version applied to every return for audit purposes.