CA ANZ recently provided feedback to Inland Revenue on their draft interpretation statement, PUB00327: GST and Agency.
This draft statement considers whether a person is acting as an agent or as a principle for the purposes of the Goods and Services Act 1985.
Our submission observes that GST can become complicated when multiple parties are involved in a transaction and establishing roles and agency relationships is not always straightforward. The statement sets out essential features of an agency relationship and circumstances where the agency relationship is modified and the GST consequences that follow.
In our view, this statement is comprehensive and should assist taxpayers, tax agents and practitioners when finalised.