Question 1 (18 marks) Goods and Services Tax (GST) Part A (9 Marks) Wilson, a shareholder employee owns all the shares in Wilson Wang Limited (WWL). a small Auckland based computer maintenance company. WWL commenced business on 1 August 2018 and made its first sales in October 2018. WL maintained the accounting records on a payment basis until recently. Wilson forecasts that for the first 12 months NZ sales will be about $3,800 per month and Australian sales will be about NZ $800 per month but sales will increase in future. 20% of the sales are paid by the customers in the month of sale and the remaining 80% of sales are paid by the 20th of the following month. Capital costs incurred in August 2018 for installing machinery amounted to $180,000 (GST inclusive). These were paid in August. WWL's main expenses are cleaning and repair materials, postage and packaging, petrol and van maintenance, all of which WWL pays in cash. WWL pays the monthly rent in advance by Direct Debit. Required: Answer the following questions in relation to WWL. Include reasons for your choices and support your answers with references to the Goods and Services Tax Act 1885. (i) When must WWL register for GET? (1 mark) (ii) When should WWL register for GST? Give reasons. {2 marks} (iii) What taxable periods can WWL choose from? What taxable period should WWL choose? Give reasons. {8 marks} (iv) What GST accounting bases can WWL choose from? What accounting basis should WWL choose? Give reasons