546
THE NEW ZEALAND GAZETTE.
[No. 20

Minister’s Decisions under Sales Tax Act, 1932–33.

Customs Department,
Wellington, 27th March, 1933.

IT is hereby notified for public information that the Minister of Customs has decided
to interpret the Sales Tax Act, 1932–33 (hereinafter referred to as “the Act”)
as under :—

(a) Dentists making dentures or similar articles :
(b) Opticians making or fitting spectacles or similar articles :
(c) Persons engaged in the bona fide repair, alteration, or renovation of goods, provided that they carry on such work only.

For the purposes of this paragraph a person shall be deemed to be engaged in the bona fide repair, alteration, or renovation of goods if he manufactures parts of articles which require repair, alteration, or renovation, and incorporates such parts in those articles. In such cases sales tax shall be payable on the sale value of the materials used in the manufacture of such parts and not on the sale value of those parts.

For the purposes of this paragraph a person shall not be deemed to be engaged in the bona fide repair, alteration, or renovation of goods if he manufactures parts of articles which require repair, alteration, or renovation, and sells them to another person to be incorporated by that other person in such articles. Such parts of articles shall be liable to sales tax under paragraphs (a) or (b) (as the case may be) of subsection (1) of section 11 of the Act.

(d) A person manufacturing taxable goods who satisfies the Collector that the total sale value of the taxable goods manufactured by him during the last financial year of his business did not exceed £500, and that the estimated value of the taxable goods likely to be manufactured by him during the current financial year is not expected to exceed that sum, provided that this exemption shall not apply to any person unless he is the holder of a certificate of exemption for the time being in force issued to him by the Collector of sales tax upon application made in a form to be supplied by the Collector :

(e) A wholesaler who satisfies the Collector that the total sale value of taxable goods sold by him during the last financial year of his business did not exceed £500, and that the estimated value of the taxable goods likely to be sold by him during the current financial year is not expected to exceed that sum, provided that this exemption shall not apply to any person unless he is the holder of a certificate of exemption for the time being in force issued to him by the Collector of sales tax upon application made in a form to be supplied by the Collector :

(f) Persons whose manufacturing operations consist only of one or more of the following :—
(i) The breaking down or reducing the strength of spirits :
(ii) The manufacture of ice :
(iii) The duplicating or typing of letters, &c :
(iv) The writing of showcards by hand :
(v) The developing and printing of photographs. |
| C 37/4/11 | 3 | (1) When the following conditions apply, viz. :—
(a) When taxable goods for use as materials in the manufacture of goods are supplied by a retailer to a manufacturer (whose premises are registered as a factory under the Factories Act, 1921–22); and
(b) Such taxable goods remain the property of the retailer ; and
(c) Taxable goods are manufactured from such materials and delivered to the retailer,—
the manufacturer will be regarded as a wholesaler selling such manufactured goods to the retailer, and will be required to be licensed and make returns and pay sales tax accordingly.

(2) The sale value of the taxable goods so manufactured will be the price charged to the retailer by the wholesaler for manufacturing the goods (exclusive of the value of the taxable goods supplied by the retailer and used by the wholesaler as materials in manufacturing the taxable goods). |