Published on 01 Feb 00
by THE TAX INSTITUTE
Joint submission by the Institute of Chartered Accountants in Australia, the Taxation Institute of Australia, the Australian Society of CPAs and the Australian Taxpayers Association. Comments on Draft Goods & Services Tax Ruling GSTR 1999/D13 Goods and Services Tax: Grants of Financial Assistance Comments on the Ruling. 1. There is no objection to the view stated in the draft ruling that if there is an obligation or undertaking to do something with the granted funds, the grant is subject to GST. However, although the ruling may be technically correct, practically, because of the number of parameters introduced in the draft ruling, it may be time consuming and confusing from a compliance point of view since each case would be subject to interpretation. Incidentally this will result in significant compliance cost to the taxpayer. Since the GST factor on grants is revenue neutral to the government, any time consuming interpretation should be avoided.
INSTITUTE OF CHARTERED ACCOUNTANTS IN AUSTRALIA
Click here to expand/collapse more articles by INSTITUTE OF CHARTERED ACCOUNTANTS IN AUSTRALIA.
AUSTRALIAN SOCIETY OF CERTIFIED PRACTISING ACCOUNTANTS
Click here to expand/collapse more articles by AUSTRALIAN SOCIETY OF CERTIFIED PRACTISING ACCOUNTANTS.
TAXPAYERS AUSTRALIA INC
TAXATION INSTITUTE OF AUSTRALIA
Click here to expand/collapse more articles by TAXATION INSTITUTE OF AUSTRALIA.