A bare trustee acts on the instructions of the beneficiary.
Even in circumstances where a trustee holds the legal title to
trust property on trust for a beneficiary, the trustee is
still acting on behalf of and as directed by the
beneficiary. This means that under the GST Act, the
beneficiary, as opposed to the trustee, has the obligations in
regards to supply or acquisition. The 2008/3 GST Ruling
extends this to a taxable supply in circumstances where a trustee,
as directed by the beneficiary, transfers legal title to a third
party. As the beneficiary is causing the supply to be made during
the course of its enterprise, the beneficiary is responsible for
GST.
Notwithstanding this analysis of liability for payment of GST
the trustee of a bare trust can satisfy tax invoice requirements
relating to supply or acquisition in the course of an enterprise
because the trustee is acting on behalf of the beneficiary.
The trustee can also be the contracting party on behalf
