Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Bill

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

(1)

Replace section 5(2)(a) with:

(a)

the supply of those goods would not be a taxable supply if those goods were sold by the first person (notwithstanding that the first person may not be the owner of those goods) and the first person has furnished to the second person a statement in writing stating fully and correctly the reasons why that supply would not be a taxable supply; or

(2)

After section 5(3B), insert:

(3C)

For an asset affected by subsection (3) or (3B), if a transfer of ownership of the asset would be a financial service, the subsection deems the person to make a supply of the asset by a transfer of ownership.

(3)

After section 5(11C), insert:

(11CB)

For the purposes of this Act, if a registered person in the course of a taxable activity receives a prize from a racing club or racing code for the performance in a race of a horse or greyhound owned by the registered person, the prize is treated as being consideration for a service provided by the registered person to the racing club or racing code in the course of the taxable activity.

(11CC)

For the purposes of subsection (11CB), race, racing club, and racing code have the meaning set out in section 5(1) of the Racing Act 2003.

(4)

Subsection (3) does not apply for a person and a supply and a taxable period ending before the date on which this Act receives the Royal assent if the person does not include the supply in a return for the taxable period consistently with section 5(11CB) of the Goods and Services Tax Act 1985, as inserted by subsection (3).