New Zealand


  • Service: Tax, Corporate Tax
  • Date: 26/06/2014

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Paul Dunne

Paul Dunne

Lead Partner - Tax

+64 9 367 5991

Simon Taylor

Senior Manager - Tax

+64 9 367 5809

Taxmail - IRD operational guide on GST & bodies corporate 

Earlier this month, the Government announced it would be changing the law retrospectively to remove GST registered bodies corporate from the GST rules, with effect from 6 June 2014.

Inland Revenue (“IRD”) has released guidance on the operational approach it will take until the law is amended.


In summary, if a body corporate is already GST registered (and not voluntarily) it will need to continue charging GST on supplies, and filing returns. The GST paid will be refunded when the law is changed. Similarly, a body corporate can continue to claim GST refunds, but with the proviso that these will need to be repaid to IRD when the law changes. The operational statement does not rule out the possibility of use of money interest or penalties applying.


The IRD’s operational position on GST and bodies corporate highlights the prospect of taxpayers having to apply a set of rules which do not (and may not) have any legislative force, and are also contrary to IRD’s better view of the current law. This will leave affected body corporates in an untenable position and confirms our concerns about the unworkability of this retrospective law change.

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

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