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House: The Lord Of The Rings Amendment

Following the completion of the Government's centrepiece legislation for this session - producer board reform - MPs moved to tax legislation including a special provision to clarify the tax position of the Lord of The Rings film production.

The law changes close a number of loopholes:

- GST on purchases made overseas, but still consumed in NZ. A number of education institutions have been selling services overseas, but the students actually attend courses in New Zealand. The change attempts to clarify that GST is payable on any goods or services consumed in NZ, no matter where the payment is made.

It was noted in the House that some institutes had been charging students GST, but not passing on the money to the Government.

- Clarification of tax laws to stop double deductions on film productions with a Lord of the Rings' amendment to ensure their tax position is clear.

The bill also sets the tax rates for next year and has unanimous support

(continuing...)

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