The Insolvency Practitioners Association (IPA) has advised that it has been working with the ATO to find a solution to the issue of paying final remuneration from a GST refund. It said the ATO has confirmed that as long as an appointee issues an invoice/tax invoice for the final fee, then the input tax credit relating to the final fee can be claimed in the final BAS. The ATO said it does not matter if the final fee has not actually been paid before the final BAS is lodged so long as an invoice has been issued, the liquidator’s final fee can then be paid from the BAS refund. According to the IPA, this treatment should allow practitioners to issue tax invoices for an amount equal to the total GST credit and is consistent with GST Advice GSTA TPP 089.
[LTN 139, 22/7/13]