Plain language law

New Zealand law explained for everyone

Goods and Services Tax Act 1985

Special cases

57: Unincorporated bodies

You could also call this:

"Rules for groups that aren't companies and do taxable activities"

Illustration for Goods and Services Tax Act 1985

When you are part of an unincorporated body that does taxable activities and is registered under the Goods and Services Tax Act, you do not have to register separately for those activities. Any goods and services supplied during those activities are considered to be supplied by the body, not by you. The body's registration is in its name, or if it is a trust, in the trust's name.

If you are a member of an unincorporated body, you are jointly responsible for paying any tax the body owes, even if you are no longer a member. When a member dies, their estate is responsible for paying any unpaid tax. You do not stop being a member until the Commissioner is notified of a change in membership.

If a notice is sent to the unincorporated body under the Goods and Services Tax Act, it is considered to be sent to all members of the body. The members of the body are jointly responsible for doing anything required under the Act, but if one member does it, that is enough. For some types of unincorporated bodies, only certain members, like the president or treasurer, are responsible for doing things required under the Act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM84893.

Topics:
Money and consumer rights > Taxes
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Part 9Special cases

57Unincorporated bodies

  1. Repealed

  2. Where an unincorporated body that carries on any taxable activity is registered pursuant to this Act,—

  3. the members of that body shall not themselves be registered or liable to be registered under this Act in relation to the carrying on of that taxable activity; and
    1. any supply of goods and services made in the course of carrying on that taxable activity shall be deemed for the purposes of this Act to be supplied by that body, and shall be deemed not to be made by any member of that body; and
      1. any supply of goods and services to, or acquisition of goods by, any member of that body acting in the capacity as a member of that body and in the course of carrying on that taxable activity, not being a supply to which paragraph (b) applies, shall be deemed for the purposes of this Act to be supplied to or acquired by that body, and shall be deemed not to be supplied to or acquired by that member; and
        1. that registration shall be in the name of the body, or where that body is the trustees of a trust, in the name of the trust; and
          1. subject to subsections (3) to (3B), any change of members of that body shall have no effect for the purposes of this Act.

            1. Despite this section, a member is jointly and severally liable with other members for all tax payable by the unincorporated body during the taxable periods, or part of taxable periods as the case may be, the person is a member of the body, even if the person is no longer a member of the body.

            2. When an individual member dies, the member's estate is severally liable in due course of administration for tax payable by the unincorporated body to the extent that it remains unpaid, whether or not the individual was a member on the date of their death.

            3. For the purpose of subsections (3) and (3A), a member does not stop being a member of the unincorporated body until the date on which the Commissioner is notified of a change in membership of the body.

            4. For the purposes of this Act, any notice served in accordance with this Act which is addressed to an unincorporated body by the name in which it is registered pursuant to this Act, shall be deemed to be served on that body and on all members of that body.

            5. Subject to subsection (6), where anything is required to be done pursuant to this Act by or on behalf of an unincorporated body, it shall be the joint and several liability of all the members to do any such thing: provided that any such thing done by 1 member shall be sufficient compliance with any such requirement.

            6. Notwithstanding anything in this section, but subject to subsections (3) to (3B), where anything is required to be done pursuant to this Act by or on behalf of an unincorporated body, not being a partnership, joint venture, or trustees of a trust, the affairs of which are managed by its members or a committee or committees of its members, it shall be the joint and several responsibility of—

            7. every member holding office as president, chairman, treasurer, secretary, or any similar office; or
              1. in default of any such member, every member holding office as a member of a committee:
                  1. provided that if it is done by any official or committee member, referred to in paragraph (a) or paragraph (b), that shall be sufficient compliance with any such requirement.

                Notes
                • Section 57(1): repealed, on (applying on 10 October 2000), by section 111(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                • Section 57(2): amended, on (applying on and after 10 October 2000), by section 111(2) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                • Section 57(2)(e): amended, on (applying on and after 10 October 2000), by section 111(3) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                • Section 57(3): substituted, on (applying on and after 10 October 2000), by section 111(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                • Section 57(3A): inserted, on (applying on and after 10 October 2000), by section 111(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                • Section 57(3B): inserted, on (applying on and after 10 October 2000), by section 111(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                • Section 57(3B): amended, on , by section 197 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                • Section 57(4): amended, on (applying on and after 10 October 2000), by section 111(5) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                • Section 57(5): amended, on (applying on and after 10 October 2000), by section 111(6) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                • Section 57(6): amended, on (applying on and after 10 October 2000), by section 111(6) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                • Section 57(6): amended, on (applying on and after 10 October 2000), by section 111(7) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                • Section 57(6): amended (with effect on 3 December 1985), on , by section 30 of the Goods and Services Tax Amendment Act 1986 (1986 No 43).