NZWINEIMPORTS Pty Ltd and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered a dispute between NZWINEIMPORTS Pty Ltd and the Commissioner of Taxation concerning the applicant's liability for Wine Equalisation Tax (WET) and Goods and Services Tax (GST). The applicant, an importer of New Zealand wine, engaged in a business model where Australian tourists purchased wine while in New Zealand for delivery to Australia. The core of the dispute involved determining the correct assessable dealing for WET purposes and the appropriate methodology for calculating both WET and GST liabilities for the periods between November 2012 and August/September 2014.

The Tribunal was required to determine three key issues: first, what supply or supplies the applicant was making for tax purposes; second, the correct methodology for calculating the applicant's WET liability; and third, the correct methodology for calculating the applicant's GST liability. These issues arose from the applicant's business arrangement involving the sale of wine from New Zealand wineries to a related entity, which then sold to the applicant, who in turn sold to Australian customers.

The Tribunal found that the Commissioner's initial view regarding the applicant's WET liability was incorrect. The reasoning focused on identifying the correct "dealing" for WET purposes, particularly in the context of indirect marketing sales and sales made under quote. The Tribunal determined that the applicant's objection decisions should be set aside and remitted to the Commissioner for reconsideration in light of the Tribunal's reasons.