Document 1 PWC advice.pdf

pwc
Memo
Release
To:
Leanne Yap, Oranga Tamariki
From:
Michelle Macdonald & Isaac Moffat-Young, PwC
Date:
28 October 2021
Subject:
Tax treatment of payments to Members of the Oranga Tamariki Ministerial
Advisory Board
Dear Leanne
Under
We  refer to our recent discussions in relation to the Withholding Tax (WHT) and Goods & Services
Tax (GST) treatment of payments to members appointed to Oranga Tamariki's Ministerial Advisory
Board.
As noted during our meetings on 18 and 20 October 2021,  the application of the relevant legislation
can become complicated, but the Cabinet Office Circular (19) 1  - Fees Framework for  Members
provides significant guidance on how Oranga Tamariki should approach its tax compliance obligations.
The following prov
Official
ides our detailed advice in relation to the WHT and GST treatment of payments to
members appointed to Oranga Tamariki's  Ministerial Advisory Board.
Background
We understand that:
•
The Minister for Children - has appointed four individuals (the Members or the Board Members) to
Oranga Tamariki's Ministerial Advisory Board (the Board) since the Board's inception
Information
•
Each of the Board Members have been appointed to the Board for an initial period of two years
from 1  February 20211.
•
The respective  appointment letters set out the rate that the respective Board Members (and the
Chair) will be paid in accordance with the Cabinet  Fees  Framework.
•
The Cabinet Office Circular (19)  1 - Fees Framework for Members (the Circular) applies to the
Members of the Board.
•
Oranga Tamariki has not deducted WHT from any payments to the Board Members in respect of
their services to the Board since their appointment.
•  s 9(2)(a)  OIA
Act
•
GST is currently being charged by all four Board Members in respect of their services to the
Board.  In one instance, a Board Member who is not GST-registered is charging GST in respect of
their services.
• Although most of the payments to Board Members fall within the current tax year (the year ended
1982
31  March 2022), a portion may have  been incurred and paid in the prior tax year (the year ended
31 March 2021).
•
Oranga Tamariki is in the process of appointing two additional individuals to the Board.
•
Oranga Tamariki is conscious of the importance of meeting all tax compliance obligations, and is
mindful that as a government agency, this high-standard of compliance cannot be compromised.
1  Per the respective appointment letters dated 27 January 2021.
PricewaterhouseCoopers, PwC Centre, 10 Waterloo Quay, PO Box 243, Wellington 6140, New Zealand
T: +64 4 462 7000, pwc.co.nz
7900683_ 1

Release
Under
Official
Information
Act 1982