ATO ID 2006/176: GST and GST returns where company ownership changes from 1 July 2006
Date of decision: 5 July 2006
Business line: Indirect Tax

Issue
Is the entity, a company, required to submit a GST return under subsection 31-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when the ownership of the entity changes before the end of the tax period?

Decision
No, the entity is not required to submit a GST return under subsection 31-5(1) of the GST Act when the ownership of the entity changes before the end of the tax period. The entity is required to submit one GST return at the end of the tax period covering the whole of the tax period.

Facts
The entity is a company that is registered under the Corporations Act 2001 . It is registered for goods and services tax (GST) and lodges its GST returns quarterly. The ownership of the company changed part way through a tax period.

Reasons for decision
Summary: Subsection 31-5(1) of the GST Act provides that an entity that is registered or required to be registered, must give to the Commissioner a GST return for each tax period. For GST purposes, subsection 184-1(1) of the GST Act defines 'entity' to include a body corporate and other unincorporated association or body of persons. Section 195-1 of the GST Act defines a company to mean a body corporate or any other unincorporated association or body of persons. The entity is a company that is registered under the Corporations Act. Accordingly, the entity (the company) is an 'entity' for GST purposes. Section 27-5 of the GST Act provides that the tax periods which apply are each period of three months ending on 31 March, 30 June, 30 September or 31 December in each year. As the entity lodges its GST returns quarterly, it must lodge one return for each of the above tax periods. Although the ownership of the entity has changed, the entity remains an 'entity' for GST purposes. The entity does not submit a GST return part way through the tax period when ownership of the entity (the company) changes. Therefore, at the end of the tax period, the entity must submit a GST return under subsection 31-5(1) of the GST Act covering the whole of the tax period.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 27-5 subsection 31-5(1) subsection 184-1 section 195-1
Subject references: Goods & services tax GST returns, payments & refunds GST returns GST body corporates GST tax periods