In its 2 July 2012 decision in AAT Case [2012] AATA 409, re A.P. Group Limited and FCT, the AAT had held that certain “incentive” payments by motor vehicle manufacturers and distributors were not consideration for a supply, with the result that overpayments of GST had been made by the taxpayer. Since the AAT therefore effectively found that the taxpayer had overpaid GST in respect of the transit/interest protection payments, the retail target incentive payments and the wholesale target incentive payments, it considered there would be need to be some adjustment made to the Commissioner’s assessment. It invited the parties to provide further submissions on issues surrounding possible refunds of overpaid GST.
In a decision handed down on Fri 14.9.2012, the Tribunal held that, for the reasons given in the above decision, it set aside the objection decision and substituted a decision that the objection was allowed in part and that the taxpayer’s net GST amounts for the monthly tax periods ended 31 May 2007 and 31 March 2008 were decreased by around $10,500 and $5,000, respectively.
(AAT Case [2012] AATA 617, Re A.P. Group Limited and FCT, AAT, Frost and Deutsch DP, AAT Ref: 2011/1981, 14 September 2012.)
[LTN 179, 14/9]