GST Treatment of Fees in Managed Investment Funds

• Interpretation statement addresses GST treatment of fees received by manager of managed fund and third-party suppliers
• Managed investment funds involve pooling money managed by fund manager and supervised by fund supervisor
• GST issues arise from relationships between parties in managed funds
• Statement addresses GST treatment of fees payable by investors, outsourced administrative services, and outsourced investment management services
• Fees payable to manager of managed fund for services supplied to investors are exempt from GST
• Outsourced administrative services are taxable, while outsourced investment management services may be exempt or taxable depending on terms of appointment and supervision

Source: taxtechnical.ird.govt.nz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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