Date posted: 14/09/2020 2 min read

Have your say: open New Zealand consultation items

Help shape NZ tax policy and guidance. Inland Revenue are currently consulting on two items, Goods and services tax - GST and agency and First step legally necessary to achieve liquidation when a liquidator is appointed.

In brief

  • Member feedback welcomed
  • PUB00327: Goods and services tax - GST and agency
  • PUB00366: First step legally necessary to achieve liquidation when a liquidator is appointed.

PUB00366: Goods and services tax - GST and agency 

Draft interpretation statement

This Interpretation Statement considers whether a person is acting as an agent or as a principal for the purposes of the Goods and Services Tax Act 1985. It is primarily concerned with the application of ss 60(1) and (2) and identifies features that indicate when an agency relationship will exist in relation to a supply.

“Agency” is not a defined term in the Act and so must take its meaning from the common law. In general terms, an agency relationship is where a person (the agent) is authorised by another person (the principal) to act on their behalf to create or affect the legal relations between the principal and a third party.

The GST consequences of a supply will differ depending on whether a person acts as an agent or as a principal for the purposes of that supply.

Consultation on this item closes 20 October 2020. 

PUB00366: First step legally necessary to achieve liquidation when a liquidator is appointed.

Draft QWBA

This draft ‘question we’ve been asked’ follows “Public Ruling BR Pub 14/09: Meaning of ’Anything Occurring on Liquidation’ When a Company Requests Removal from the Register of Companies”, which applies to short-form liquidations.

The QWBA asks “Is the first step legally necessary to achieve liquidation when a liquidator is appointed (a long-form liquidation) the same as the first step legally necessary in a short-form liquidation?”

Inland Revenue’s conclusion in this draft QWBA is that, no, The first step legally necessary to achieve a long-form liquidation is the appointment of a liquidator as required by the Companies Act 1993.

Consultation on this item closes 20 October 2020.

Read the draft items

You can access these draft consultation items on Inland Revenue’s Tax Technical Website.

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Contact the CA ANZ Tax Team NZ

Throughout the year we ask for member’s thoughts and feedback on submissions and consultation items. If an item is of interest to you or your clients let us know your thoughts.

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