On 10 February 2012, the High Court granted the Commissioner special leave to appeal against the Full Federal Court decision in Qantas Airways Ltd v FCT [2011] FCAFC 113. The Full Federal Court had unanimously allowed an appeal by Qantas Airways Ltd against an earlier AAT decision that the airline makes a supply for GST purposes when a passenger cancels his or her flight booking or doesn’t show for the flight and no refund was either available or claimed.
Details of the written submissions in the appeal made by both the Commissioner and the taxpayer are on the High Court website.
The High Court will hear the appeal in Brisbane on 4 June 2012.
[LTN 64, 3/4]
[2011] FCAFC 113 Scope Note
GOODS AND SERVICES TAX – domestic airline travel – what is the taxable supply, if any, where passenger has paid the fare but cancels the reservation or does not present for carriage and no refund is available or claimed – the reservation or the failed flight?
Held:the failed flight and therefore no taxable supply.