The ATO on Mon 29.7.2013, released a Decision Impact Statement on the decision of the Full Federal Court in Cyonara Snowfox Pty Ltd v FCT [2012] FCAFC 177. In that case, the Full Court dismissed a taxpayer’s appeal against an earlier AAT decision, which had affirmed a GST assessment for particular periods in connection with property transactions concerning the taxpayer’s sale of allotments of land. The High Court had subsequently dismissed the taxpayer’s application for special leave to appeal against the decision. Broadly, the ATO said the Full Court’s decision was consistent with the Commissioner’s views as expressed in various rulings (ie GSTR 2006/7, and GSTR 2006/8) and practice statements (ie PS LA 2005/2(GA) and PS LA 2009/3).
[LTN 144, 29/7/13]
Catchwords
TAXATION – consideration of the construction to be attributed to ss 75-5 and 75-10 (as those provisions stood in relation to taxable supplies made up to 16 March 2005) for the purposes of A New Tax System (Goods and Services Tax) Act 1999 (Cth) (the “GST Act”) – consideration of the time for making a choice under s 75-5 of the GST Act – consideration of the going concern elements of s 38-325 of the GST Act – consideration of the statutory scheme under the GST Act – consideration of whether the taxpayer had discharged the onus of demonstrating on the facts that a GST-free supply under subdivision 38-J of the GST Act had been made out – consideration of ss 105-50(1) and 105-50(3)(a) of Schedule 1 of the Taxation Administration Act 1953 (Cth)
Extract from Decision Impact Statement
The Full Federal Court’s decision is consistent with the Commissioner’s view, as expressed in GSTR 2006/7, GSTR 2006/8 and PS LA 2005/2 (GA), that section 75-5 of the GST Act, as it stood and applied prior to 29 June 2005, required a taxpayer to make a choice to apply the margin scheme no later than the time when the supply is made.