Cessation of routine farming activities as a consequence of decision to sell land - GSTD 2011/D1
18 Aug 2011
On 17 August 2011, the ATO released draft GST Determination GSTD 2011/D1 for public comment by 9 September 2011. The full title of the draft is "GST: can a 'farming business' be carried on, for the purposes of paragraph 38-480(a) of the A New Tax System (Goods and Services Tax) Act 1999, where there has been a cessation of routine farming activities for a period of time as a consequence of a decision to sell the land?"
The draft Determination states, at para 1, as follows:
"Yes, a 'farming business' can be carried on for the purposes of paragraph 38-480(a) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act),1 where there has been an absence of routine farming activities by the supplier for a period of time in anticipation of a sale. Whether a farming business continues to be carried on is a question of fact and degree depending on the circumstances of each particular case."