This interpretation statement considers the application of section 5(6D) of the Goods and Services Tax Act 1985. Section 5(6D) broadly provides that when a payment in the nature of a grant or subsidy is paid on behalf of the Crown or by a public authority to a person in respect of their taxable activity, then that payment is deemed to be consideration for a supply of goods and services in the course or furtherance of the taxable activity.
Consultation period: 11 April 2023 – 23 May 2023
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Source – IRD
