05 Oct 066 AAT applies GST anti-avoidance provisions - VCEThe AAT has held that Division 165 of the GST Act applied to deny the taxpayer (VCE) an input tax credit of $70,000 on the purchase of a property for $770,000 from VCE's sole director and equal shareholder as vendor. Under the agreement between the parties, the amount of $770,000 was payable over an approximately 15 year period and ownership of the property vested in VCE at the time of the final payment on 30 June 2018. There was no dispute between VCE and the Commissioner that, but for the operation of the anti-avoidance provisions in Division 165 of the GST Act, VCE would be entitled to input tax credits of $70,000 under Division 11 in respect of the acquisition of the property; and the vendor would be liable to pay GST amounting to $70,000 in 2018. The AAT was of the view that all elements of Division 165 were satisfied and, in particular, the taxpayer entered into, or carried out the scheme with the sole or dominant purpose of its or another entity’s getting a GST benefit from the scheme: VCE and FCT  AATA 821 (AAT, Forgie DP, 26 September 2006).
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