Chapter 1 - Introduction

1.1 This issues paper outlines a number of minor concerns relating to the GST rules and suggests some solutions on how these may be resolved. The matters raised do not give rise to significant policy questions, but are questions that require clarification or amendment to the legislation to ensure it operates as intended.[1]

1.2 The issues covered are:

• application of the hire-purchase time-of-supply rule to land transactions;
• treatment of directors’ fees;
• consequential and remedial amendments following the introduction of the apportionment rules;
• consequential and remedial amendments following the introduction of the zero-rating for land rules;
• consequential and remedial amendments following the changes to the definitions of “dwelling” and “commercial dwelling”;
• credit notes when GST is mistakenly accounted for.

1.3 Subject to consultation, we plan to recommend to Government that the issues be included in the first available tax bill in 2013.

1.4 Your comments on the solutions suggested in this paper are welcomed. In order to include any amendments in the first tax bill of 2013, we would appreciate your submissions by 1 March 2013. Submissions can be addressed to:

GST issues
C/- Deputy Commissioner
Policy Advice Division
Inland Revenue Department
P O Box 2198
Wellington 6140

1.5 Or email: [email protected] with “GST issues” in the subject line.

1.6 Responses to this paper may be the subject of a request under the Official Information Act 1982, which may result in their publication. The withholding of responses on the grounds of privacy, or for any other reason, will be determined in accordance with that Act. If you consider that any part of your letter should properly be withheld under the Act please clearly indicate this.

1 All legislative references in this paper are to the Goods and Services Tax Act 1985 unless otherwise stated.