The ATO on Thur 27.6.2013, released a Decision Impact Statement on the Federal Court’s decision in Yacoub v FCT [2012] FCA 678 (2012) 83 ATR 722. In that case, the Federal Court 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. It did so on the basis that the taxpayers were in a partnership and were therefore jointly and severally liable for the unpaid balance of GST.
The Court also upheld the Commissioner’s decision as to the date of deregistration of the entity for GST purposes.
The taxpayers subsequently filed notices to appeal to the Full Federal Court but discontinued their appeal.
Broadly, the ATO said the decision was consistent with public views of the Commissioner on the issues that were decided, and there was no need to amend GST Ruling GSTR 2004/2 (What is a joint venture for GST purposes?).
[LTN 122, 27/6/13]
Catchwords from [2012] FCA 678
TAXATION – whether applicants liable for GST – whether business arrangements constituted a partnership – whether business arrangements a non-entity joint venture