(New Zealand) The claimants asserted that they had entered into contracts for the supply of nursing home facilities, and in return received payments from the government towards the costs. The contract provided for the increase of payments annually. The Act provided that under contracts certain values were to be adjusted automatically. The rates were not raised, but not as provided under the Act, and the claimants sought payment. The government agency asserted that no contract existed but rather the payments were made as grants, and were not affected by the Act.
Held: There was no requirement that a grant must be paid direct to the person intended to be benefited, the claim was in effect a claim of the same money again. The Act looked at it from the viewpoint of the government as payer. In their view it was in the nature of a grant or subsidy, and was not caught by the Act.
Lord Nicholls of Birkenhead, Lord Hoffmann, Lord Hobhouse of Woodborough, Lord Millett, Lord Scott of Foscote
No 44 of 2000, [2001] UKPC 51, [2002] 1 AC 362,, [2002] 2 WLR 313, [2002] STC 581
PC, PC, Bailii
Goods and Services Tax Act 1985 78(2) (New Zealand)
England and Wales
Updated: 21 August 2021; Ref: scu.166939