Published on 01 Apr 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 Taxpayers' Australia Inc. Comments on Draft Goods & Services Tax Ruling GSTR 2000/D1 Goods and Services Tax: Making Adjustments under Division 19 for adjustment event. Comments on the Ruling. The views expressed in GSTR 2000/D1 appear to us to be generally correct, subject to the following: 1. Paragraphs 35 and 36 deal with rebates to third parties. These take the view that such a rebate is not an adjustment event because it does not change the consideration for the supply (whereas a fund channelled through the recipient would result in a reduction of tax). The end result of this reasoning seems to be inappropriate. The total level of tax collected would exceed the tax applicable to the real (net) cost to the consumer. If this reasoning is correct, it illustrates a design defect.
INSTITUTE OF CHARTERED ACCOUNTANTS IN AUSTRALIA
AUSTRALIAN SOCIETY OF CERTIFIED PRACTISING ACCOUNTANTS
TAXATION INSTITUTE OF AUSTRALIA