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Residential property, commercial property, Goods and Services Tax and deregistration: a case study on how the GST law may have been manipulated

Citation

McLaren, J, Residential property, commercial property, Goods and Services Tax and deregistration: a case study on how the GST law may have been manipulated, Canberra Law Review, 10, (3) pp. 125-138. ISSN 1320-6702 (2011) [Refereed Article]

Copyright Statement

Copyright 2011 University of Canberra

Official URL: http://www7.austlii.edu.au/cgi-bin/viewdoc/au/jour...

Abstract

When a residential property, being used for commercial purposes is sold to a buyer that intends to operate a professional practice from the premises and one of the vendors is registered for GST, what happens when the registered vendor deregisters from GST ten days before settlement? The purchaser expects to be able to claim the GST included in the price as an input tax credit but on settlement is not given a tax invoice. The purchaser then lodges the Business Activity Statement (BAS) claiming an input tax credit without a tax invoice. The purchaser believed that the Commissioner of Taxation would exercise his discretion under s 29-70(2) or under s 29-10(10) of the A New Tax System (Goods and Services Tax) Act 1999 (Cth), (GST Act) and treat the contract for sale as a tax invoice. The justification for this action being that the vendor deregistered from GST in order to retain the GST. In the case study presented in this paper the Commissioner of Taxation disallowed the purchasersí claim for the input tax credit. The main question examined in this paper is whether it is within the spirit of the GST legislation for a vendor to deregister just before settlement, not provide a tax invoice and keep the GST?

Item Details

Item Type:Refereed Article
Keywords:residential property and Goods and Services Tax
Research Division:Law and Legal Studies
Research Group:Law
Research Field:Taxation Law
Objective Division:Law, Politics and Community Services
Objective Group:Community Service (excl. Work)
Objective Field:Ability and Disability
UTAS Author:McLaren, J (Dr John McLaren)
ID Code:128603
Year Published:2011
Deposited By:TSBE
Deposited On:2018-10-02
Last Modified:2018-11-08
Downloads:0

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