Two parties, one project, separate books.

Capital efficiency · per-line cost attribution · dual GST returns · final settlement.

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Heads up. The numbers below assume the project inputs further down the page. Scroll down to confirm sale price, build costs, capital structure and other settings before relying on the verdict.

Governance

Capital efficiency

At-a-glance view

RJF

Land contributor · seller

Net after tax

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Pre-tax

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share less below-line

Cash contributed

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equity at risk

Cash IRR

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return on cash equity

Margin on sale

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net ÷ sale price

Project break-even

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project profit = $0

WFR

Build funder

Net after tax

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Pre-tax

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share less below-line

Cash contributed

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equity at risk

Cash IRR

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return on cash equity

Margin on sale

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net ÷ sale price

Project break-even

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project profit = $0

Project structure

Sets defaults · per-line override

Profit share & tax

RJF perspective

% of project profit

Tax rate Both entities · NZ company 28%

28% locked

Land in P&L How land contribution is shown

JV costs paid by Determines GST input allocation for JV cost lines

Capital structure

Cash vs debt · per party

RJF total capital Cash + debt total

Total

Cash

Debt

WFR total capital Cash + debt total

Total

Cash

Debt

IRR is calculated on cash contributed, not total capital. Debt funds the gap. The interest line below should reflect the cost of that debt.

Revenue & land

Sale collected by RJF

Sale price GST inclusive · RJF invoices		RJF
Land cost Zero-rated

Project costs

Editable · JV cost or party only

Selling commission % of GST-incl. sale
RJF interest On RJF's funded portion		RJF only
WFR interest On WFR's funded portion		WFR only

RJF · take-home

RJF net after tax

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share less interest less tax

Pre-tax share

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after interest

Tax payable

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at chosen rate

Project profit

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before split

Margin on cost

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whole project

Effective tax

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on pre-tax

Total net GST

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to IRD

RJF is the legal seller and pays full output GST. WFR claims input GST on WFR's costs through WFR's own return. Each party is liable to IRD only for their own return — provided the JV is structured as separate registered persons, not a deemed partnership.

Project P&L to RJF take-home

GST exclusive

RJF — GST return

In RJF books

WFR — GST return

In WFR's books

Settlement between parties

After completion

RJF · cash flow

WFR · cash flow

Two GST returns, one project. Each party files their own. RJF is the legal vendor and is liable for output GST. WFR claims WFR's input GST. The JV gets reconciled between parties separately.

If a party doesn't pay their GST. IRD chases the party whose return shows the unpaid GST. The other party has no IRD liability — but may have a contractual claim under the JV deed. Confirm the JV is structured as separate registered persons, not a deemed partnership under s 57 GST Act.

Settlement. RJF receives all sale proceeds, settles output GST, pays RJF's costs, then transfers WFR's share + reimbursement of WFR's actual cash spend.

This isn't tax advice. Confirm GST and income tax treatment with a NZ chartered accountant. Spec build profits are ordinary income under s CB 6–CB 14 of the Income Tax Act 2007.