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The AAT has held that the taxpayer, a private tutor, was carrying on an enterprise for GST purposes and ordered that the cancellation of his GST registration be set aside.

The Commissioner relied upon the small scale of the taxpayer's activities and the fact that the taxpayer's BAS returns always resulted in a refund to the taxpayer. In relation to the former, the AAT held that the tutoring activities were recurrent, regular, systematic and organised, and engaged in for a commercial purpose. In relation to the latter fact, the AAT held that the Commissioner was distracted by the financial results as reported by the taxpayer in his BAS. Those results indicated that the activities were not profitable, and that they were unlikely ever to be so. But the figures that the taxpayer reported were not a true reflection of the debits and credits that the activities were generating, as many claims for input tax credits were not referable to his tutoring activities, or were input taxed. The AAT said that it is only by reference to the true debits and credits that the existence of a possible profit outcome should be assessed.

The Private Tutor and FCT [2013] AATA 136 (AAT, Frost DP, 14 March 2013).


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