In a decision handed down on Mon 15.7.2013, the AAT has held that, for the purposes of the GST Act, all of the consideration in relation to the sale of a property was received by the taxpayer at the time of settlement on 16 May 2008.
The case concerned the liability of the taxpayer Trust for GST in connection with the taxable supply of vacant land in Queensland. In March 2008, the Trust agreed to sell the property for $3.177m plus GST. On settlement on 16 May 2008, the Trust and the purchaser entered into what the AAT said was described as a Settlement Balance Facility Agreement and the Trust received from the purchaser just over $2m. The transfer instrument recorded the consideration of $3.495m.
The Commissioner assessed the Trust on the basis that it received full consideration on the transfer of the Property in the 2008 tax year in part through the vendor finance agreement.
The Trust argued that it was only liable for GST to the extent of 2 payments (of $2m and id=”mce_marker”.4m) actually received for the property, made in the 2008 and 2009 tax periods, and amounting to less than the full consideration. The Trust’s objection to the Commissioner’s assessment was disallowed on and it sought review of that decision.
The AAT found that for the purposes of the GST Act, all of the consideration in relation to the sale of the property was received by the Trust at the time of settlement on 16 May 2008.
(AAT Case [2013] AATA 496, Re Rod Mathiesen Truck Hire Pty Ltd as trustee for the Mathiesen Family Trust, AAT, Molloy DP, AAT Ref: 2013/0341 and 2013/0342, 15 July 2013.)
[LTN 134, 15/7/13]