19 May 06 Submission on Marana Exposure Draft legislation
On 2 May 2006, the Taxation Institute lodged a submission with Treasury regarding the Exposure Draft legislation containing proposed amendments to the GST treatment of residential premises under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). The Government intends to clarify the GST treatment of some types of real property in light of the decision of the Full Federal Court in Marana Holdings Pty Ltd v Commissioner of Taxation  FCAFC 307 (Marana).
The Taxation Institute is strongly concerned about the retrospectivity of the Exposure Draft legislation, which seeks to amend the GST Act to effectively continue the ATO’s approach to the tax treatment of property (set out in GSTR 2000/20) that existed prior to the Court's decision in Marana.
For a copy of the submission, go here.