Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Bill

  • enacted
48 Section 5 amended (Meaning of term supply)

(1)

After section 5(10), insert:

(10B)

For the purposes of this Act, when a person who is resident in New Zealand pays an amount of money to participate in gambling or in a prize competition through a supply of remote services that are physically performed outside New Zealand, the payment is treated as a payment for a supply of services by the person who conducts the gambling or prize competition, as applicable.

(2)

In section 5(11), replace “subsection (10)” with “subsections (10) and (10B).

(3)

In section 5(13)(c), replace “apply to it.” with “apply to it; or”.

(4)

After section 5(13)(c), insert:

(d)

the supply of the contract of insurance is a supply of remote services that is zero-rated under section 11A(1)(x).

(5)

After section 5(26), insert:

(27)

The Commissioner may treat a person resident in New Zealand who receives a supply of remote services to which section 8(3)(c) applies as if they were making a supply of services that is chargeable with tax under section 8(1) if—

(a)

the person has, for the purposes of avoiding the payment of tax, knowingly notified a fact or provided information under section 8B(5) that is altered, false, or misleading; and

(b)

after the date on which the services have been physically performed, it is found that the notification or provision of information has leadled to the supply being treated as—

(i)

zero-rated under section 11A(1)(x); or

(ii)

not being a service supplied in New Zealand; and

(c)

either—

(i)

the act of the person described in paragraph (a) is a repeated occurrence:; or

(ii)

the amount of tax that was not charged on the supply through the act described in paragraph (a) is substantial.