The Trustee for the Naidu Family Trust and Commissioner of Taxation
Document type: Decision Impact Statement
Venue: Administrative Appeals Tribunal (2011/0421)
Judgment date: 19 December 2011
Date published: 16 February 2012

Summary of decision:
Outlines the ATO response to this case, which concerned whether the taxpayer was liable to GST on a supply of property as mortgagee in possession.

Overview of facts:

Issues decided:

ATO view of decision:
The Tribunal's decision that the taxpayer is liable to pay GST on the supply of property is in accordance with the Commissioner's view of the operation of section 105-5 of the A New Tax System (Goods and Services Tax) Act 1999 (Cth). | The Tribunal finding that the supply of property took place at settlement, that is, at the time the transfer was executed, is consistent with the Commissioner's submissions to the Tribunal. | The ATO also accepts that it was open to the Tribunal to remit the matter to the Commissioner to reassess the net amount based on the revised calculation.

Administrative treatment:
Implications for ATO precedential documents (Public Rulings & Determinations etc) | Implications for Law Administration Practice Statements

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 (Cth) 105-1 105-5
Case references: Federal Commissioner of Taxation v Reliance Carpet Co Pty Ltd (2008) 236 CLR 342 68 ATR 158 2008 ATC 20-028 Re Keenhilt Pty Ltd (as trustee for the CHC Services Trust) v Federal Commissioner of Taxation [2007] AATA 2095 67 ATR 988 2007 ATC 2794 Central Equity Ltd v Commissioner of Taxation [2011] FCA 908 2011 ATC 20-274 Brady King Pty Ltd v Commissioner of Taxation [2008] FCAFC 118 (2008) 168 FCR 558 2008 ATC 20-034 69 ATR 670 Stevenson v Federal Commissioner of Taxation (1991) 29 FCR 282 91 ATC 4476 22 ATR 56
Subject references: GST liability on supply of a property Timing of supply of property Mortgagee in possession