*MBI Properties Pty Limited v FCT – High Court allowed Commissioner to appeal decision that purchaser of reversion makes no supply to existing lessee [6]

The High Court Fri 11.4.2014, granted the Commissioner special leave to appeal against the Full Federal Court decision in MBI Properties Pty Limited v FCT [2013] FCAFC 112. The Full Federal Court had overturned an earlier decision and unanimously held that a taxpayer, that had purchased 3 residential apartments which were subject to leases, did not have an increasing adjustment within the meaning of Div 135 of the GST Act, as there was no continuing supply in terms of s 135-5(1);

[LTN 70, 11/4/14]