Sale and Supply of Alcohol Act 2012

Licensing trusts, community trusts, and other matters - Community trusts - Miscellaneous

393: Liability of community trust to taxes

You could also call this:

"Community trusts pay taxes like a company and are responsible for past tax deals"

A community trust has to pay income tax, rates, and other taxes like a company that makes money for private gain. You are treated as if the community trust and the licensing trust that it came from are the same person when it comes to taxes, according to the Inland Revenue Acts. This means that any deals or actions made by the licensing trust before it became a community trust are considered to have been made by the community trust at the same time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3339951.


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394: Application of Trusts Act 2019, or

"Rules from the Trusts Act 2019 apply to community trusts"

Part 3Licensing trusts, community trusts, and other matters
Community trusts: Miscellaneous

393Liability of community trust to taxes

  1. A community trust is liable to income tax, rates, and all other taxes and duties as if it were a body corporate formed for private pecuniary gain.

  2. For the purposes of the Inland Revenue Acts (as defined in section 3 of the Tax Administration Act 1994),—

  3. a community trust and the licensing trust that was converted into the community trust are, in relation to all assets and liabilities that, by this Act, become the assets and liabilities of the community trust, treated as the same person:
    1. all transactions entered into by, and all acts of, a licensing trust before conversion to a community trust, in relation to all assets and liabilities that, by this Act, become assets and liabilities of the community trust, are treated as having been entered into or performed by the community trust on the date on which they were entered into or performed by the licensing trust.
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