New Zealand Tax Agency Issues Interpretation Statement Clarifying GST Treatment of Fees for Managed Funds

The New Zealand Inland Revenue March 31 issued Interpretation Statement No. IS 25/05, clarifying the GST treatment of fees paid to and by fund managers. Topics covered include: 1) the treatment of the services that fund managers provide to investors as exempt supplies of financial services under Section 14(1)(a) of the GST Act 1985; 2) the treatment of third-party outsourced administrative services provided to fund managers as taxable supplies; and 3) the treatment of third-party investment management services provided to fund managers as the exempt supply of financial services, or the taxable supply of advice, depending on the level of ...