Inland Revenue has released a draft Public Ruling PUB00424 ‘Goods and Services Tax – Directors’ Fees, which considers the application of GST in relation to the payment of fees to a director of a company.

Key CA ANZ’s recommendations include:

• The commentary should include additional examples to highlight the issue of when a directorship is undertaken in carrying on a taxable activity.
• The issue of those who are GST registered and have a portfolio of directorships, but no other taxable activity should be discussed further with Inland Revenue operations.