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Non-arm's length sales

A wine's taxable value must be based on prices that would be used if the transaction was at arm's length.

Last updated 12 February 2017

Non-arm's length transactions may occur where a relationship exists between the parties to the transaction – for example, if the transaction involves:

  • an associated company
  • staff or shareholders
  • suppliers (such as grape growers who supply grapes to wine producers).

If you have a non-arm's length transaction, your liability to WET (or entitlement to a WET credit) is taken to be the amount that it would have been if the transaction was at arm's length.

See also