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18 Nov 13 Decision Impact Statement - AP Group Ltd

The ATO has published an interim Decision Impact Statement in relation to the decision of the Full Court of the Federal Court in AP Group Ltd v FCT [2013] FCAFC 105; 2013 ATC 20-417.

The decision concerned the GST treatment of four incentive payments made by motor vehicle manufacturers to a motor vehicle dealer. Specifically, the issue in dispute was whether the four incentive payments were consideration for taxable supplies under s 9-5(a) of the GST Act. The Full Court concluded that none of the payments constituted consideration for supplies made by the dealer to the manufacturer, as none of the acts done by the taxpayer represented supplies made to the manufacturers.

The Commissioner is giving further consideration to what impact the decision has on his existing public views on 'supply' and 'consideration'. The Commissioner's preliminary views are that:

The Commissioner's existing views on nexus to the effect that there must be a "sufficient" connection are not inconsistent with the Court's observations on the term "for" in the phrase "supply for consideration".
Caution is required when determining whether the one set of actions gives rise to more than one supply, but that does not necessarily require a significant change to GSTR 2006/9.

The Decision Impact Statement sets out the administrative treatment the ATO is adopting as a result of the decision.

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