The issues considered in this dispute were:
▪ whether the Taxpayer received the payment under a contract of insurance for the
purposes of s 5(13);
▪ if it is determined that s 5(13) does apply, whether the supply is standard rated or
zero-rated under s 11(1)(mb);
▪ if it is determined that s 5(13) does not apply, whether a consequential
adjustment is required to disallow the input tax deductions claimed.
The payment received by the Taxpayer is deemed to be consideration for a
taxable supply under s 5(13). The Taxpayer is therefore liable for GST on the
payment.
The supply is standard rated, and GST is payable at 15%.
Source: govt.nz
