- The statement explains whether court-awarded costs and disbursements, and out-of-court settlement payments for those costs, are subject to GST.
- It focuses only on costs/disbursements, not on other court awards or settlement payments like damages.
- GST applies only if the payment is consideration for a taxable supply; the statement analyzes how this applies to court awards, settlements, and insurance-related payments.
- It also covers record keeping and provides guidance on how the recipient’s GST status can affect the amount of a court award.
- Appendices set out the relevant court rules and detailed treatment for different courts and recipient types.
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.
Latest Posts in "New Zealand"
- GST Registration for Directors and Board Members Through Personal Services Companies
- GST Treatment of Directors’ and Board Members’ Fees: Summary of Public Rulings 26/01-26/03
- France’s E-Invoicing Reform: PPF, Peppol, and Mandatory E-Reporting
- Mandatory Peppol E-Invoicing for Large Government Suppliers from 2027
- Mandatory B2G e-invoicing in New Zealand is coming
