Global

Details

  • Service: Tax, Global Indirect Tax, International Tax
  • Type: Regulatory update
  • Date: 6/11/2014

New Zealand - Proposed change to GST treatment of corporates 

June 11:  Reports from New Zealand reveal that the government has proposed to change the goods and services tax (GST) treatment of “bodies corporate” in New Zealand, and remove them from the GST rules.

This proposal would override an Inland Revenue interim position, from last year, that a “body corporate” must register for GST under current law, if it makes supplies that exceeded NZ $60,000 per annum. Under the government’s proposal, beginning 6 June 2014, such bodies corporate would no longer be able to claim GST on expenses.

KPMG observation

Tax professionals in New Zealand have observed that the government’s proposal raises the prospect of taxpayers having to apply a set of rules that do not (yet) have legislative force and are, in fact, contrary to Inland Revenue’s own interpretation of the existing law.


Read a June 2014 report [PDF 106 KB] prepared by the KPMG member firm in New Zealand: Government changes GST treatment of bodies corporate




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