other cases it will depend on factors such as: ow many lots you're creating the amount of development work involved the amount of your financial investment ow much time and effort is involved For example, the Courts decided that the following subdivision was a "taxable activity", and therefore the taxpayer was liable for GST: the subdivision created six residential sections, water was installed for two of them, an engineer's report was obtained, easements for stormwater discharge were created (although the physical works were not done) and local authority rating and reserve contributions were paid. Cautionary notes If you're contemplating subdividing as a profit-making venture you should be aware that it's a speculative and risky exercise, with many pitfalls and hurdles. It's virtually impossible, unless you're experienced with the process yourself, to complete a subdivision successfully without the services of a lawyer who's familiar with this area of the law. Disclaimer: Nothing on this website constitutes legal advice. HowToLaw is neither a legal nor an accounting firm. HowToLaw provides general information on legal issues. If you face a legal issue, you should take specific legal advice from a lawyer or an accountant before taking any action. The New Zealand legal and accounting practitioner names and firms appearing and linked in this site are people and firms that offer legal and accounting advice in a separate capacity to HowToLaw. HowToLaw offers on this site sample documents in an independent capacity to any legal or accounting firm you see listed within this site.