Trade Me insists proposed changes to trading laws will not leave most of its members open to paying tax on their transactions.
Parliament's commerce select committee published its report on the Consumer Law Reform Bill this week.
It recommended changes to the Consumer Guarantees Act and the Fair Trading Act, including extending the former to cover all transactions between traders and consumers.
That would include all auction types - online ones as well as competitive tenders.
Trade Me head of operations Michael O'Donnell said yesterday the proposed changes did not bring any new or additional tax obligations.
"The only thing that will change is that you will be immediately able to see if the person you are buying from is a trader," Mr O'Donnell said.
He said he had spoken to Consumer Affairs Ministry analyst Evelyn Cole, who had told him the Government was committed to providing a meaningful definition of who was a "trader", but a useful starting place was a person who acquired goods for the purposes of onselling those goods at a profit.
"So if a person is selling unwanted gifts or goods that they no longer need, then they are unlikely to be defined as traders," Mr O'Donnell said.
"It would have been useful if this definition could have been provided at the same time as the Government released the select committee's report."
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