Last Wednesday 12 September 2012, Jeremy Geale CTA (KPMG) and Tax Counsel Stephanie Caredes CTA attended a meeting of the NTLG GST Sub-Committee. At this meeting, participants discussed a number of issues including:
- When a contract is a “supply” – The Tax Institute raised a query concerning in what circumstances the Commissioner will treat a “contract” as a “supply” for GST purposes noting the divergence in the Commissioner’s position on this issue identified in recent case law;
- PSLA 2012/2 - Change of Trustee – The Tax Institute noted that there are some issues that should be considered in the context of PSLA 2012/2;
- Section 69-10 input tax credit limitations for luxury cars – Members considered the potential input tax credit limitations for cars valued between the “car limit” as defined for the purpose of the GST Act and the “luxury car tax threshold” as defined for the purposes of the A New Tax System (Luxury Car Tax) Act 1999 Cth;
- Treatment of meals as part of hospital accommodation – Members discussed the issues surrounding the circumstances when meals provided together with accommodation in certain circumstances (such as with accommodation in hospital while undergoing treatment) should form part of the supply (ie be regarded as incidental) or when the meals should be regarded as a separate supply;
- Clarification of characterisation of funding arrangements and when payments are considered to be made for a taxable supply – Members requested information from the ATO regarding when funding provided to a government agency or non-profit organisation will be regarded as consideration for a supply under the basic rules in the GST Act. Clarification was sought from the ATO in relation to this issue based on the range of differing guidance publicly available;
- Period of review: Section 155-45 Taxation Administration Act 1953 (Cth) – Members asked the ATO to clarify whether this provision will apply in the new self-assessment regime for GST for the purpose of allowing the Commissioner to make an amendment that would increase a taxpayer’s GST liability;
- ATO Acceptance of Specialist Adviser Authorisation (eg GST Adviser) – Following on from the meeting held on 13 June 2012, the ATO provided information to members about how a specialist tax adviser (eg a GST specialist adviser) could be appointed by a taxpayer to act on the taxpayer’s behalf with respect to dealing with the ATO on GST matters for the taxpayer (see link).
Members who seek further information in relation to the above are encouraged to contact us at Tax Policy.