This GST Ruling, released on Wed 15.8.2012, sets out the Commissioner’s views on the treatment of exit payments which a resident becomes liable to pay to the operator of a retirement village when the resident’s interest in the village terminates. Among other things, the Ruling states that where the operator does not provide services other…
This GST Determination, released on Wed 1.8.2012, states that when an entity acquires second-hand goods and makes a subsequent taxable supply of the goods by way of a lease (before making a taxable supply of the goods by way of sale or exchange), both taxable supplies are taken into account in quantifying and attributing input…
The ATO, on Wed 1.8.2012, released Technical Discussion Paper TDP 2012/1 (GST treatment of recovered dishonoured payment costs). It considers the GST treatment of costs being recouped by a supplier when payment by a customer for a supply is dishonoured, resulting in the supplier incurring dishonoured fees from their financial provider which fees and associated…
In a majority 2:1 decision, the Full Federal Court has partially allowed both the taxpayer’s appeal and Commissioner’s cross-appeal from a 2010 decision of the AAT, in which it was found that the taxpayer was entitled to use the margin scheme for some acquisitions of property, but did not have approved valuations for others, and…
The taxpayers have filed notices of appeal to the Full Federal Court against the decision of Jagot J in Yacoub v FCT [2012] FCA 678. The Federal Court had dismissed appeals by the taxpayers concerning the Commissioner’s decision to disallow an objection to a notice of assessment for the payment of GST regarding properties sold.…
The Federal Court has held that a sub-lease of student accommodation was a supply of commercial premises and that supplies of accommodation to 3 individuals were taxable supplies. The taxpayer, the trustee of the Nest Southbank Unit Trust (NSUT), developed student accommodation and serviced apartments at a Southbank site in Brisbane – Urbanest Southbank (the…
The Assistant Treasurer on Fri 17.8.2012, released draft legislation on the proposal to clarify the circumstances in which the restriction of GST refunds applies to overpayments of GST and allows taxpayers to self-assess their entitlement to a GST refund by reference to ascertainable criteria. He said the same criteria will also apply for refunds relating…
On Wed 15.8.2012 Treasury, released draft legislation and an explanatory memorandum on proposed changes to the margin scheme provisions contained in Div 75 of the GST Act. Broadly, the draft legislation seeks to amend the GST Act to ensure that, where applicable, the margin scheme for a taxable supply of subdivided land or premises can…
The ATO has reminded trustees of private ancillary funds that the transitional period to amend the fund’s governing rules to comply with the private ancillary fund guidelines closes on 1 October 2012. This applies to funds that were prescribed private funds on or before 30 September 2009. The ATO said the funds and their trustees…
The Government has announced that former Tax Commissioner, Mr Michael Carmody, announced his retirement from the Commonwealth Public Service on 24 August 2012. At his retirement, Mr Carmody was the CEO of the Australian Customs Service. Mr Carmody’s public service career commenced in 1968 and he was appointed Tax Commissioner in 1993, a position he…