Published on 13 Mar 01
by THE TAX INSTITUTE
The draft Ruling explains that, in the ATO's preliminary view, the GST consequences of a court order or out-of-court settlement will depend on whether the payment resulting from the order or settlement is characterised as consideration for a supply.
GSTR 2000/D23 then explains that a supply will only be a taxable supply if it is made for consideration. It then states that this requires that there be a sufficient nexus between the supply and a payment, act or forbearance.
INSTITUTE OF CHARTERED ACCOUNTANTS IN AUSTRALIA
NATIONAL INSTITUTE OF ACCOUNTANTS
TAX POLICY & RESEARCH DIVISION