TABL5551 - PowerPoint slides - Week 11 - GST.ppt

Held supply was qantas best endeavours to carry the

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Held : supply was Qantas’ best endeavours to carry the passengers – no guarantee of particular flight ( Heydon J dissented : argued the supply = travel) MBI [ATL 1581]: lease generally involves 2 supplies: (1) creation of contractual right on entry; (2) ongoing provision of quiet enjoyment TABL5551 - RHW adapted - Week 11 - GST 9
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2. Consideration Broad definition in s9-15 : includes * any form of payment, including barter * any voluntary or involuntary payment, act or forbearance by the recipient or third parties in connection with the supply The supply must be “for” the consideration (i.e. there must be a link) The amount of consideration is the money paid, or the GST-inclusive market value of goods or services TABL5551 - RHW adapted - Week 11 - GST 10
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Special provisions in s9-15(3) Supply of option is taxed when the option is supplied – the subsequent exercise o the option is only subject to GST if there is additional consideration: * Example [ATL1584]: Li [pays Jo $200 for an option to purchase a stereo: GST is payable. On exercising the option, Li does not pay any additional amount. No GST on the actual exercise of the option. If instead, Li paid Jo $50 for the grant of the option, and a further $150 on actually exercising the option, Li would pay GST (on $50) on the grant of the option and additional GST (on $150) on the actual exercise of the option. TABL5551 - RHW adapted - Week 11 - GST 11
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Gifts to non profit bodies = not consideration Payments by one government body to another = not consideration where covered by an appropriation under Australian law TABL5551 - RHW adapted - Week 11 - GST 12
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3. Enterprise Very broad definition GST Act ( s9-20(1)(a)-(g) ): An activity or series of activities done * in the form of a business/profession/trade … * an adventure or concern in the nature of trade * on a regular or continuous basis via lease, license or other grant of interest in property * by trustees of funds to which tax deductible gifts can be made, or of complying superannuation funds * by a charitable or religious institution * by the Commonwealth, a State, or by a body corporate or corporation solely for public ppose TABL5551 - RHW adapted - Week 11 - GST 13
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Exclusions from definition of ‘enterprise’ ( s9-20(2)(a)-(d) ): Activities: * done as an employee … * done as private recreational pursuits or hobbies * done by individuals or partnerships … without reasonable expectation of profit or gain * done as a member of certain local governing bodies in that capacity TABL5551 - RHW adapted - Week 11 - GST 14
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Carrying On/out an enterprise Defined broadly in GST Act Div 195: Includes anything done in course of commencement or termination of enterprise Attempt to deal with pre-commencement and post cessation cases?
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  • One '15
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  • Taxation in the United States

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