The ATO on Wed 19.6.2013, released a Decision Impact Statement on the decisions in AAT Case [2012] AATA 616, Re Wynnum Holdings No 1 Pty Ltd & Ors and FCT and AAT Case [2011] AATA 296, Re Wynnum Holdings No 1 Pty Ltd and FCT.
In relation to Case 616, the AAT held a taxpayer was not carrying on an enterprise in relation to the purchase of a property. In addition, it also held that the property purchased was not “commercial residential premises” under s 195-1 of the GST Act. Accordingly, the Tribunal affirmed the Commissioner’s disallowance of input tax credits in relation to the purchase of the property.
In Case 296, the taxpayer was unsuccessful in arguing that the Commissioner’s claim to recover an amount of GST refunded was ineffective on the basis that the claim was made outside of the 4-year time limit.
Broadly, the ATO said the Tribunal’s decision in relation to the timing of GST refund being outside the 4-year time limit was consistent with the Commissioner’s submissions. It also said the Tribunal’s decision in relation to the taxpayer not carrying on an enterprise is consistent with the views set out in GST Ruling GSTR 2008/3 (Dealings in real property by bare trusts).
[LTN 116, 19/6/13]