The ATO has issued a Decision Impact Statement on the decision in AAT Case [2013] AATA 496, Re Rod Mathiesen Truck Hire Pty Ltd as trustee for the Mathiesen Family Trust. In that case, the AAT held that, for the purposes of the GST Act, all of the consideration in relation to the sale of a property was received by the taxpayer at the time of settlement on 16 May 2008.
Broadly, the case concerned the liability of the taxpayer (the Trust) for GST in connection with the taxable supply of vacant land in Queensland. The Commissioner assessed the Trust on the basis that it received full consideration on the transfer of the property in the 2008 tax year in part through a vendor finance agreement (described as the “Settlement Balance Facility Agreement”).
However, the Trust argued that it was only liable for GST to the extent of 2 payments actually received for the property, made in the 2008 and 2009 tax periods, and amounting to less than the full consideration.
The ATO said the findings made by the Tribunal were consistent with the principles set out in GST Rulings GSTR 2001/8 and 2003/12 and GST Determination GSTD 2004/4, and were consistent with the submissions the Commissioner made to the Tribunal.
[LTN 174, 9/9/13]