New Zealand


  • Service: Tax, Corporate Tax
  • Date: 11/06/2014

Discuss this Taxmail further

Peter Scott

Peter Scott

Partner, Tax

+64 9 367 5852

John Cantin

John Cantin

Partner  - Tax 

+64 4 816 4518

Taxmail - Government changes GST treatment of bodies corporate 

The Government is proposing to change the GST treatment of New Zealand’s more than 20,000 bodies corporate, to remove them from the GST rules.
Download Now
PDF files require Adobe Reader to view

This overrides an Inland Revenue interim view last year that a body corporate is required to register for GST, under current law, if it makes supplies that exceeded $60,000 per annum. From 6 June 2014, such bodies corporate will no longer be able to claim GST on expenses, under the Government’s proposal.


While KPMG welcomes the Government providing clarity on its policy position, we are disappointed by the process it is following in order to bring about this change. Its process raises the prospect of taxpayers having to apply a set rules which do not (yet) have any legislative force and are, in fact, contrary to Inland Revenue’s own interpretation of the existing law. This is not a satisfactory approach.


If the Government intends to achieve fairness and certainty, by aligning the GST treatment with past operational practice, this treatment should apply to bodies corporate which have not registered for GST, rather than to all bodies corporate from 6 June.

Taxmail - Comment on topical tax issues from KPMG NZ Tax. 

 Share this Taxmail