Last weekend, The Nelson Harness Racing Club celebrated its 125th anniversary but faces uncertain times after discovering a $140,000 tax bill in connection with over claiming GST for the past four years.

An accountant junior came across the error several months ago when he found the club had claimed for GST on stakes payments to all winning owners and trainers instead of claiming only for those that were already GST-registered.

The Club informed the IRD immediately they became aware of the error.

However president John Mckenzie said Inland Revenue had yet to send the club a final tax bill three months on.

"The IRD are obviously double checking their files as well."

The figure of $140,000 is what we assume it to be," John said.

The club, which is already facing financial problems may also be required to front up for late payment fees.

Mckenzie said the potential bill was "concerning" for the club, but wouldn't comment on its impact at this time.

Harnesslink Media