7 (Goods and Services Tax)[1]

Residential premises to be used predominantly for

Info icon This preview shows pages 33–40. Sign up to view the full content.

“residential premises to be used predominantly for  residential accommodation” Sales and long-term leases are not input taxed to the  extent that the residential premises are: “Commercial residential premises” “New residential premises” other than those used  for residential accommodation before 2 December  1998
Image of page 33

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Foundations of Taxation Law [¶7.18](a) © CCH Australia Limited Margin scheme Margin scheme Entities can agree to use margin scheme to calculate  the GST payable on a taxable supply of certain real  property instead of general rules      GST = 1/11 x “margin” for the supply General rule Generally the amount by which the consideration for the supply exceeds the supplier’s consideration for acquiring the property Property acquired before 1 July 2000 Generally the amount by which the consideration for the supply exceeds an approved valuation of the property as at 1 July 2000, or at the date the supplier became registered for GST if not registered on 1 July 2000
Image of page 34
Foundations of Taxation Law [¶7.18](b) © CCH Australia Limited Implications of the margin scheme Implications of the margin scheme Implications: Acquirer is not entitled to any input tax credits Supplier is not required to issue a tax invoice Overall cost of the real property is reduced Margin scheme commonly used when developers sell  residential land to unregistered purchasers
Image of page 35

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Foundations of Taxation Law [¶7.19] © CCH Australia Limited Special entities Special entities Special GST rules apply to the following entities: Agents Associates Groupings Joint ventures Branches Government departments Dealers in second hand goods Gambling suppliers
Image of page 36
Foundations of Taxation Law [¶7.20](a) © CCH Australia Limited Reverse charge rules (Div 83) Reverse charge rules (Div 83) Parties may agree that the recipient (not the supplier)  is liable for GST where: A non-resident makes a taxable supply otherwise  than through an enterprise it carries on in  Australia, and  The recipient is registered (or required to be  registered) 
Image of page 37

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Foundations of Taxation Law [¶7.20](b) © CCH Australia Limited Reverse charge rules (Div 84) Reverse charge rules (Div 84) A supply of something other than goods or real  property that is not connected with Australia is treated  as a taxable supply if: The recipient of the supply acquires the thing  supplied for the purpose of an enterprise that it  carries on in Australia The supply is for consideration, and  The recipient is registered (or required to be  registered) The recipient is liable for GST (rather than the  supplier)
Image of page 38
Foundations of Taxation Law [¶7.21](a) © CCH Australia Limited GST general anti-avoidance rules GST general anti-avoidance rules Anti-avoidance rules may apply where: An entity (“avoider”) gets a  GST benefit  from a  scheme The GST benefit is not  attributable to a 
Image of page 39

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 40
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '09
  • Law, Taxation in the United States, CCH Australia Limited

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern