IS3387
Issued
01 Sep 2002

GST treatment of court awards and out of court settlements

Out of court settlements or court awards might arise as a result of a dispute regarding an earlier supply, and in some cases a new supply might arise such as a transfer of property in return for payment where ownership is in dispute. For GST to be payable upon a payment arising from a court award or out of court settlement the payment must be consideration for a supply, or an adjustment to consideration for an earlier supply.