Daily Archives: March 2, 2017

GSTR 2012/3 – when care services and accommodation provided to residents in privately funded retirement villages is GST-free [57]

This Ruling, released on Wed 11.7.2012, explains when care services and accommodation provided to residents in privately funded nursing homes, aged care hostels and serviced apartments in a retirement village are GST-free. In particular, it explains when supplies of care services and supplies of accommodation to care recipients are GST-free under ss 38-25(3), 38-25(4) and…

Re Trnka and FCT – GST: no entitlement to input tax credits as no valid invoices [56]

The AAT has found that a taxpayer was not entitled to input tax credits claimed for the period 1 July 2002 to 1 December 2002 as there was no tax invoice or other documentary evidence to support the claims. The taxpayer was represented in the proceedings by his mother who was his authorised agent and…

Re Campbell and FCT – GST input credits denied – taxpayer unable to prove she was carrying on a software enterprise – records and code stolen [55]

The AAT has found that a taxpayer has failed to satisfy the burden of proving that she was carrying on an enterprise under s 9-20 of the GST Act for the period 1 August 2008 to 30 June 2010. Accordingly, the AAT affirmed the Commissioner’s decision to deny the taxpayer’s claims for input tax credits,…

Re Baini and FCT – GST and income tax assessments confirmed for taxi business [54]

The AAT has affirmed the Commissioner’s decision to disallow the taxpayer’s objection to various GST and income tax assessments. The taxpayer is registered for GST and runs a taxi business, although he has no direct involvement in running the business instead leaving that to his brothers. The case concerned the ascertainment of the taxpayer’s income…

*Yacoub v FCT – taxpayer liable for all of the GST because it was held it was in a common law partnership and jointly liable with the insolvent third party [53]

The Federal Court has dismissed appeals by taxpayers concerning the Commissioner’s decision to disallow an objection to a notice of assessment for the payment of GST regarding properties sold. The matter concerned husband and wife taxpayers who entered into an agreement with a third party to develop and construct a real estate project. The husband…

*GST: second-hand aircraft acquired before 1 July 2000 were not acquired for the correct purpose and ITC’s were not available – objection decision upheld [52]

The AAT has affirmed the Commissioner’s objection decisions disallowing the taxpayers’ objections to private rulings concerning second-hand aircraft acquired before 1 July 2000. The AAT decisions concerned 2 matters. The AAT noted that although the taxpayers in the 2 matters were different entities, the applications were heard concurrently because of the extensive overlap of the…

*re A.P. Group Limited and FCT – GST: Certain motor vehicle “incentive” payments not consideration for a supply [51]

The AAT has held that certain “incentive” payments by motor vehicle manufacturers and distributors were not consideration for a supply, with the result that overpayments of GST had been made by the taxpayer. The taxpayer in this case is the GST representative member of a group of companies engaged in motor vehicle dealerships selling new…

*GST regs amended to make all of HP taxable; extend RITC’s for Life Insurance; modify RITC’s for trustees and clarify guarantees and indemnities [50]

The A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No 1) was registered on the Federal Register of Legislative Instruments on 29 May 2012. It amends the GST Regulations to: (i)      treat all components of a hire purchase transaction as taxable supplies; (ii)      extend the availability of reduced input tax…

*PAYG withholding payment summary – closely held lodgment concession [49]

The ATO has advised tax professionals that the PAYG withholding summary annual reports must be lodged by 14 August 2012. However, it says tax professionals with clients who meet certain criteria may be eligible to lodge their report by the due date of their return. The ATO says to be eligible for the lodgment concession,…

*Government rejects JCPAA recommendation for transparency in tax policy and legislative problems [48]

In November 2011, the Federal Parliamentary Joint Committee of Public Accounts and Audit (JCPAA) tabled its Report 426: Ninth Biannual Hearing with the Commissioner of Taxation. The Government’s response to 2 recommendations of that Report was released on Tue 24.7.2012. The Report’s recommendations included that: ATO notifications to Government flagging potential tax policy or legislative…