Private ruling: Leasing of land
Published: July 2013

Ruling: Q4: Does Division 129 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) operate to adjust any input tax credits which may be claimed by entity 1 relating to construction costs subject to this ruling application? The Commissioner ruled that: | A4: No, Division 129 of the GST Act doesn't apply in this case in relation to any input tax credits that relate to the construction costs.




Subject: Goods and Services Tax (leasing of land): The Commissioner of Taxation was asked to rule on the following questions. | Question 1: Does an entity (entity 1) make a taxable supply to another entity (the other entity) under the Agreement to Lease? | Question 2: Does entity 1 make a taxable supply to the other entity under the Agreement to Construct? | Question 3: Is entity 1 entitled to claim input tax credits on constructions costs relating to the Agreement to Construct? | Answer 1: No, entity 1 does not make a taxable supply to the other entity under the Deed of Agreement to Lease. | Answer 2: Yes, entity 1 does make a taxable supply to the other entity under the Agreement to Construct. | Answer 3: Yes, entity 1 is entitled to claim input tax credits on constructions costs relating to the taxable supply it makes under the Agreement to Construct.