Issued
01 Aug 2009

Secondhand goods input tax credits - marine farming licences and leases

Marine farming leases and licenses are covered by ruling BR Pub 09/05 and therefore Pub 03/08 and 03/09 will not be reissued.

Decision not to reissue rulings: BR Pub 03/08 - Marine farming leases and secondhand goods input tax credits; and BR Pub 03/09 - Marine farming licences and secondhand goods input tax credits

The following public rulings applied from 12 November 2003 to 12 November 2006:

  • BR Pub 03/07, "Fishing quota and secondhand goods input tax credits";
  • BR Pub 03/08, "Marine farming leases and secondhand goods input tax credits";
  • BR Pub 03/09, "Marine farming licences and secondhand goods input tax credits";
  • BR Pub 03/10, "Coastal permits, certificates of compliance, marine farming permits, and secondhand goods input tax credits".

These four rulings, along with the combined commentary, were published in Tax Information Bulletin Vol 15, No 12 (December 2003).

The issue addressed by BR Pub 03/08 and BR Pub 03/09 was whether GST input tax credits were available to GST-registered persons who acquired marine farming leases or licences from GST-unregistered persons.

Section 10 of the Aquaculture Reform (Repeals and Transitional Provisions) Act 2004 provides that from 1 January 2005 marine farming leases and licences are deemed to be coastal permits granted under the Resource Management Act 1991. This includes marine farming leases and licences in existence before 1 January 2005. Therefore, marine farming leases and licenses are now covered by BR Pub 09/05, "Coastal permits and certificates of compliance - secondhand goods input tax credits". For that reason, the rulings relating to marine farming leases and licences (BR Pub 03/08 and BR Pub 03/09) will not be reissued.

In addition, marine farming permits are no longer required because section 67J of the Fisheries Act 1983 was repealed by section 19 of the Aquaculture Reform (Repeals and Transitional Provisions) Act 2004. As a result, those parts of BR Pub 03/10 relating to marine farming permits do not form part of the reissued ruling - BR Pub 09/05. BR Pub 09/05 continues to apply to coastal permits and certificates of compliance.