Expenses incurred during winding-up process

Key requirements

Business termination activity remains in the course of business, so taxable asset disposals still require GST. Termination costs such as legal and liquidation fees are overheads. A previously wholly taxable business can claim their input tax even in a later period without taxable sales, subject to the applicable rules. A previously partially exempt business must use its permitted recovery formula; under the standard method, no taxable supplies in the cost period can mean no recovery. Continuing rent, utilities and other non-termination expenses require their own attribution: full recovery needs an actual cost component or input for past or present taxable supplies, not merely a connection. General professional work answering IRAS queries is not automatically directly attributable to a specific former sale. Keep termination and ordinary overhead evidence separate.