The ATO has issued a Decision Impact Statement on AAT Case [2014] AATA 363, Re North Sydney Developments Pty Ltd and FCT.
In this case, the AAT held the taxpayer’s letter of 3 September 2009, to the Commissioner, satisfied the “notification” requirement in s 105-55 of Sch 1 to the TAA, thereby extending the 4-year time limit in that section in relation to entitlements to input tax credits (ITCs) for acquisitions made more than 4 years ago. The ATO said the Commissioner accepted the conclusion of the Tribunal that the taxpayer’s letter of 3 September 2009 satisfied the “notification” requirement in s 105-55.
The AAT noted that the current ATO view on what constitutes “notification” to the Commissioner under s 105-55 is set out in Miscellaneous Taxation Ruling MT 2009/1. It said the Commissioner will review MT 2009/1 and make any necessary changes to reflect and ensure consistency with the Tribunal’s decision in the case.
The ATO noted the taxpayer had argued (in the alternative) that the lodgment and payment notices issued by the Commissioner for the December 2005 and January 2006 tax periods were effective notices for the purposes of para 105-50(3)(a), which meant its entitlement to the relevant ITCs would have been preserved, even in the absence of an effective notice under s 105-55. The ATO said the AAT’s finding that the lodgment and payment notices did not engage the exception in subpara 93-10(1)(a)(i) of the GST Act because the taxpayer’s claim to ITCs did not arise out of an unpaid net amount or an amount of indirect tax was consistent with the Commissioner’s view. The ATO said it will review Practice Statement PS LA 2009/3 and make any necessary changes to reflect the Tribunal’s decision in the case.
[LTN 182, 19/9/14]