Section HD 29 — Income Tax Act 2007: Persons buying goods from overseas

HD 29 Persons buying goods from overseas Who this section applies to (1) This section applies, in relation to a purchase of goods, to— (a) a person in New Zealand ( person A ); and (b) person A’s principal who is resident in a country or territory outside New Zealand, and not resident in New Zealand ( person B ). Treatment of persons buying goods (2) If person A is instrumental in arranging the purchase of goods from person B, and the goods are either in New Zealand or are to be imported into New Zealand under the contract of purchase, person A and person B and the income are treated as follows: (a) person B is treated as carrying on a business in New Zealand; and (b) person A is treated as person B’s agent in relation to the income derived from the business; and (c) the income from the business is treated as having a source in New Zealand. Exemption (3) Person A is not liable as agent for the payment of income tax if the Commissioner is satisfied that in corresponding circumstances in a country or territory outside New Zealand, person B, if resident in New Zealand, would not be liable for income tax in that country or territory. Defined in this Act: agent , business , Commissioner , income , income tax , New Zealand , pay , resident in New Zealand , source in New Zealand Compare: 2004 No 35 s HK 26 Section HD 29(2)(c): amended, on 21 December 2010, by section 80(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section HD 29 list of defined terms derived from New Zealand : repealed, on 21 December 2010, by section 80(2)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section HD 29 list of defined terms source in New Zealand : inserted, on 21 December 2010, by section 80(2)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).