The ATO on Fri 2.5.2014, released a new Interim Decision Impact Statement on the Full Federal Court decision in ATS Pacific Pty Ltd v FCT [2014] FCAFC 33.
In that case, the Full Federal Court unanimously upheld the Commissioner’s argument that a supply made by an Australian inbound tour operator to overseas customers was fully subject to GST. The ATO says the taxpayer has lodged an application for special leave to appeal to the High Court.
The interim Decision Impact Statement outlines the ATO’s interim approach to the case, particularly in relation to taxpayers that have either underpaid their GST liability or over-claimed GST refunds, as a consequence of relying on the decision of the Federal Court at first instance. The ATO says the Commissioner will only seek to recover the amounts in question if, after the finalisation of any High Court proceedings, the Full Federal Court decision stands.
Affected taxpayers do, however, have the option of self-revising activity statements and voluntarily paying the relevant amounts now, it says.
After the finalisation of any High Court proceedings, the ATO says the Commissioner will review the impact of the Court’s decision on various ATO precedential documents, including GST Rulings GSTR 2001/8, GSTR 2005/6, GSTR 2006/9, and issue a final Decision Impact Statement.
[FJM Note: The Commissioner also says he will not be making any refunds of overpaid GST in these circumstances under s105-65 of the Schedule 1 to the Taxation Administration Act 1953, pending any High Court decision in this case.]
[LTN 82, 2/5/14]