IRD Consulting on GST for Body Corporates
May 10, 2013 New Zealand Taxation
The IRD is looking at potential changes which could be made to the tax treatment of residential body corporates.
On May 8th the IRD released a new issues paper calling for public opinion on the treatment of GST for bodies corporate.
According to the IRD, a body corporate “makes supplies of services to owners of a unit title”, and discussions are now being held on whether body corporates carry out taxable activity and whether such entities qualify as body corporates may register for GST.
Explaining the purpose of the issues paper, the chief tax counsel of the IRD Martin Smith said that “…the paper sets out an initial interpretative position for consideration and also raises some alternative views. It invites submissions from interested parties on both the legal position and the appropriate policy outcome.”
The sets out the IRD’s initial assumption that body corporates do carry out taxable activity and should be liable to register for GST if their activity exceeds NZD 60 000 per annum.
The deadline for submissions on issues raised in the paper are due in June 2013.
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