Associated Persons Flashcards
GST Trust Distributions
Recently I commented on a draft interpretation statement issued by IR, which considered the GST issues associated with a trust that makes a distribution of goods that form part of its taxable activity, to a beneficiary of the trust.
IR’s views in that regard, have now been finalised via the issue of IS 18/02 – Goods & Services Tax – GST treatment of distributions made by a trading trust to a beneficiary.
To summarise the main points of IS 18/02, a core element in any transaction of this nature from a GST perspective, is the _____________ nature of the parties involved, a beneficiary of a trust _____________ with the trustees of the trust in accordance with section 2A(1)(f) of the Goods & Services Tax Act 1985.
As a consequence of this relationship, even though the distribution of the goods may have occurred for no consideration (which is often the case), a supply will still be deemed to have been made for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific time of supply rules that apply to ____________ party transactions). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/
associated
GST; Trust Distributions
Recently I commented on a draft interpretation statement issued by IR, which considered the GST issues associated with a trust that makes a distribution of goods that form part of its taxable activity, to a beneficiary of the trust.
IR’s views in that regard, have now been finalised via the issue of IS 18/02 – Goods & Services Tax – GST treatment of distributions made by a trading trust to a beneficiary.
To summarise the main points of IS 18/02, a core element in any transaction of this nature from a GST perspective, is the associated nature of the parties involved, a beneficiary of a trust associated with the trustees of the trust in accordance with section ____________ of the Goods & Services Tax Act 1985.
As a consequence of this relationship, even though the distribution of the goods may have occurred for no consideration (which is often the case), a supply will still be deemed to have been made for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific time of supply rules that apply to associated party transactions). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/
2A(1)(f)
GST Trust Distributions
Recently I commented on a draft interpretation statement issued by IR, which considered the GST issues associated with a trust that makes a distribution of goods that form part of its taxable activity, to a beneficiary of the trust.
IR’s views in that regard, have now been finalised via the issue of IS 18/02 – Goods & Services Tax – GST treatment of distributions made by a trading trust to a beneficiary.
To summarise the main points of IS 18/02, a core element in any transaction of this nature from a GST perspective, is the associated nature of the parties involved, a beneficiary of a trust associated with the trustees of the trust in accordance with section 2A(1)(f) of the Goods & Services Tax Act 1985.
As a consequence of this relationship, even though the distribution of the goods may have occurred for _____________ (which is often the case), a supply will still be deemed to have been made for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific time of supply rules that apply to associated party transactions). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/
no consideration
GST Trust Distributions
Recently I commented on a draft interpretation statement issued by IR, which considered the GST issues associated with a trust that makes a distribution of goods that form part of its taxable activity, to a beneficiary of the trust. IR’s views in that regard, have now been finalised via the issue of IS 18/02 – Goods & Services Tax – GST treatment of distributions made by a trading trust to a beneficiary.
To summarise the main points of IS 18/02, a core element in any transaction of this nature from a GST perspective, is the associated nature of the parties involved, a beneficiary of a trust associated with the trustees of the trust in accordance with section 2A(1)(f) of the Goods & Services Tax Act 1985.
As a consequence of this relationship, even though the distribution of the goods may have occurred for no consideration (______________), a supply will still be deemed to have been made for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific time of supply rules that apply to associated party transactions). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/
which is often the case
GST & Trust Distributions
Recently I commented on a draft interpretation statement issued by IR, which considered the GST issues associated with a trust that makes a distribution of goods that form part of its taxable activity, to a beneficiary of the trust.
IR’s views in that regard, have now been finalised via the issue of IS 18/02 – Goods & Services Tax – GST treatment of distributions made by a trading trust to a beneficiary.
To summarise the main points of IS 18/02, a core element in any transaction of this nature from a GST perspective, is the associated nature of the parties involved, a beneficiary of a trust associated with the trustees of the trust in accordance with section 2A(1)(f) of the Goods & Services Tax Act 1985.
As a consequence of this relationship, even though the distribution of the goods may have occurred for no consideration (which is often the case), a supply will still _______________ for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific time of supply rules that apply to associated party transactions). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/
be deemed to have been made
GST Trust Distributions
Recently I commented on a draft interpretation statement issued by IR, which considered the GST issues associated with a trust that makes a distribution of goods that form part of its taxable activity, to a beneficiary of the trust.
IR’s views in that regard, have now been finalised via the issue of IS 18/02 – Goods & Services Tax – GST treatment of distributions made by a trading trust to a beneficiary.
To summarise the main points of IS 18/02, a core element in any transaction of this nature from a GST perspective, is the associated nature of the parties involved, a beneficiary of a trust associated with the trustees of the trust in accordance with section 2A(1)(f) of the Goods & Services Tax Act 1985.
As a consequence of this relationship, even though the distribution of the goods may have occurred for no consideration (which is often the case), a supply will still be deemed to have been made for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific time of supply rules that apply to associated party transactions). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/
open market value of the goods
GST Trust Distributions
Recently I commented on a draft interpretation statement issued by IR, which considered the GST issues associated with a trust that makes a distribution of goods that form part of its taxable activity, to a beneficiary of the trust.
IR’s views in that regard, have now been finalised via the issue of IS 18/02 – Goods & Services Tax – GST treatment of distributions made by a trading trust to a beneficiary.
To summarise the main points of IS 18/02, a core element in any transaction of this nature from a GST perspective, is the associated nature of the parties involved, a beneficiary of a trust associated with the trustees of the trust in accordance with section 2A(1)(f) of the Goods & Services Tax Act 1985.
As a consequence of this relationship, even though the distribution of the goods may have occurred for no consideration (which is often the case), a supply will still be deemed to have been made for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific _______________ that apply to associated party transactions). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/
time of supply rules
GST Trust Distributions
Recently I commented on a draft interpretation statement issued by IR, which considered the GST issues associated with a trust that makes a distribution of goods that form part of its taxable activity, to a beneficiary of the trust.
IR’s views in that regard, have now been finalised via the issue of IS 18/02 – Goods & Services Tax – GST treatment of distributions made by a trading trust to a beneficiary.
To summarise the main points of IS 18/02, a core element in any transaction of this nature from a GST perspective, is the associated nature of the parties involved, a beneficiary of a trust associated with the trustees of the trust in accordance with section 2A(1)(f) of the Goods & Services Tax Act 1985.
As a consequence of this relationship, even though the distribution of the goods may have occurred for no consideration (which is often the case), a supply will still be deemed to have been made for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific time of supply rules that apply to __________________). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
https://gilligansheppard.co.nz/richards-tax-updates-august-2/
associated party transactions
As a consequence of this relationship, even though the distribution of the goods may have occurred for no consideration (which is often the case), a supply will still be deemed to have been made for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific time of supply rules that apply to associated party transactions). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
The aforementioned consequence can be __________ however, with the consideration for the supply still being treated as nil, where the recipient beneficiary themselves is GST registered, and will be using the distributed goods in their own taxable activity.
ignored
As a consequence of this relationship, even though the distribution of the goods may have occurred for no consideration (which is often the case), a supply will still be deemed to have been made for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific time of supply rules that apply to associated party transactions). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
The aforementioned consequence can be ignored however, with the consideration for the supply still being treated as _____, where the recipient beneficiary themselves is GST registered, and will be using the distributed goods in their own taxable activity.
nil
As a consequence of this relationship, even though the distribution of the goods may have occurred for no consideration (which is often the case), a supply will still be deemed to have been made for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific time of supply rules that apply to associated party transactions). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
The aforementioned consequence can be ignored however, with the consideration for the supply still being treated as nil, where the recipient beneficiary themselves is __________, and will be using the distributed goods in their own taxable activity.
GST registered
As a consequence of this relationship, even though the distribution of the goods may have occurred for no consideration (which is often the case), a supply will still be deemed to have been made for the open market value of the goods, thereby triggering an output tax liability at the time of supply (where one also needs to be conscious of the specific time of supply rules that apply to associated party transactions). Naturally, with no cash received from the recipient beneficiary, the trustees will need to fund the output tax liability from other sources.
The aforementioned consequence can be ignored however, with the consideration for the supply still being treated as nil, where the recipient beneficiary themselves is GST registered, and will be using the distributed goods in their own _____________.
taxable activity
