Private ruling: GST at settlement
Date of advice: 16 July 2021
Published: September 2021
Date scheme commenced: The date of issue

Ruling: Q1: Are you required to withhold an amount under section 14-250 of Schedule 1 to the Taxation Administration Act 1953 (TAA)? | A1: No

Relevant facts and circumstances: The vendor provided a written notification stating that there was no withholding required under section 14-250 of Schedule 1 to the TAA.

Relevant legislative provisions: Sub-section 14-250 (1) of schedule 1 to the Taxation Administration Act 1953 | Sub-section 14-250 (2) of schedule 1 to the Taxation Administration Act 1953

Reasons for decision: Summary: Section 14-250 of Schedule 1 to the TAA - Recipients of certain taxable supplies of real property must make pay amounts to Commissioner: Liability to pay an amount (1) You must pay to the Commissioner an amount if: (a) You are the recipient (within the meaning of the GST Act) of a taxable supply that is or includes a supply to which subsection (2) applies; and (b) In a case where the supply is a supply of potential residential land - either: (i) You are not registered (within the meaning of that Act); or (ii) You do not acquire the thing supplied for a creditable purpose. (2) This subsection applies to a supply by way of a sale or long-term lease (within the meaning of the GST Act), of: (a) new residential premises that: (i) Have not been created through substantial renovations of a building; and (ii) Are not commercial residential premises; or (b) potential residential land that: (i) Is included in a property subdivision plan; and (ii) Does not contain any building that is in use for a commercial purpose. Therefore, based on the facts of this case the purchaser has no withholding requirements under section 14-250 of Schedule 1 to the TAA.