The AAT has upheld the Commissioner's denial of an input tax credit claimed by the taxpayer in respect of the purchase of a property being used as residential premises. The property was purchased subject to a lease in favour of a sitting tenant whose right of occupation then had some four months to run and it was purchased inclusively of the development application which related to the construction of 10 units. Evidence given on behalf of the taxpayer was that the taxpayer intended to develop the Property by constructing residential units. This evidence was not accepted by the AAT. In the course of the its reasons, the AAT referred to the conflicting decisions of the Full Federal Court in Marana Holdings Pty Limited v FCT (2004) 141 FCR 299 and the Supreme Court of New South Wales in Toyama Pty Limited v Landmark Building Developments Pty Limited (2006) 197 FLR 74.
Sunchen Pty Limited as Trustee of the Sunchen Family Trust and FCT  AATA 838 (AAT, Block DP, 19 September 2008).
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