The ATO on Mon 1.7.2013, released an Interim Decision Impact Statement on the Federal Court’s decision in ATS Pacific Pty Ltd v FCT [2013] FCA 341.
In that case, the Federal Court held that supplies provided by a taxpayer, an Australian travel agent, to non-resident travel agents was subject to GST as it did not fall within the scope of s 38-190 of the GST Act. The supplies were ultimately provided to non-resident tourists who travelled to Australia. However, the Court held that a margin fee charged by the taxpayer [to the foreign travel agent] was GST-free. The taxpayer subsequently lodged a notice of appeal to the Full Federal Court.
Broadly, the ATO outlines the administrative treatment “between now and the time the appeal and cross-appeal are decided”. It says where a taxpayer lodges in accordance with the published ATO view, or in accordance with the Federal Court’s decision regarding the margin fee being GST-free, the Commissioner will not amend the assessments. However it said where a taxpayer lodges on the basis that the entire supply is GST-free, or claims refunds for past transactions the Commissioner may amend the assessments. According to the ATO, it will review the position when the decision of the Full Federal Court is available.
COMMENTS due by 26 August 2013. ATO contact: David Esposito – Tel: (02) 6216 1468; Fax (02) 6216 1250; Email: David.Esposito@ato.gov.au.
[LTN 124, 1/7/13]