23 Jan 12 Decision Impact Statement - Aurora Developments
The ATO has published a Decision Impact Statement in relation to the Federal Court's decisions in Aurora Developments Pty Ltd v FCT  FCA 232; 2011 ATC 20-250 (GST issue) and Aurora Developments Pty Ltd v FCT (No. 2)  FCA 1090; 2011 ATC 20-280 (penalty issue).
The cases concerned whether a residential development site is supplied GST-free as a going concern; whether there was a failure to take reasonable care; and the validity of a penalty assessment if the penalty was subsequently reduced.
The Decision Impact Statement states that the ATO's view in GSTR 2002/5 accords with the Court's decision in relation to the going concern issue.
The Decision Impact Statement also states ATO's administrative practice concerning the reduction of penalty imposed under Division 284, Schedule 1 of the Taxation Administration Act 1953, to give effect to an objection decision, is also in accordance with the Court's decision.