The ATO on Mon 9.1.2012, released a Decision Impact Statement on the Federal Court’s decisions in Aurora Developments Pty Ltd v FCT [2011] FCA 232 (GST and going concern) and Aurora Developments Pty Ltd v FCT (No 2) [2011] FCA 1090 (penalties for omission of GST amounts).
The ATO says its view in GSTR 2002/5 (When is a “supply of a going concern” GST-free?) accords with the Court’s decision in relation to the going concern issue. Further, it says its administrative practice concerning the reduction of penalty imposed under Div 284 of Sch 1 of the TAA, to give effect to an objection decision, is also in accordance with the Court’s decision.
[FJM note: the taxpayer lacked reasonable care, even though acting on advice, in not informing the advisers of the facts properly.]
[LTN 4, 9/1]