Abi Mahendranathan
Articles by this Author
Federal Court provides certainty regarding the GST treatment of residential property
- By Abi Mahendranathan
- Published 13/12/2010
- Moore Property News
- Unrated
Federal Court provides certainty regarding the GST treatment of residential property
The Full Federal Court has handed down its decision in Sunchen Pty Ltd v Commissioner of Taxation [2010] FCAFC 138. In essence, the issue before the Court was whether land purchased by the taxpayer, Sunchen Pty Ltd, was a residential premises to be used predominantly for residential accommodation. The Court held that the answer to this question was to be determined by reference to the objective characteristics of the property, and not by reference to the subjective intentions of the taxpayer when purchasing the property. This is a positive result for property developers, as it means that the correct GST treatment can be determined by examining the physical attributes of a property rather than having to determine the subjective intention of the purchaser. It also confirms the correctness of long standing industry practice and the ATO view expressed in GSTR 2000/20.
The Full Federal Court has handed down its decision in Sunchen Pty Ltd v Commissioner of Taxation [2010] FCAFC 138. In essence, the issue before the Court was whether land purchased by the taxpayer, Sunchen Pty Ltd, was a residential premises to be used predominantly for residential accommodation. The Court held that the answer to this question was to be determined by reference to the objective characteristics of the property, and not by reference to the subjective intentions of the taxpayer when purchasing the property. This is a positive result for property developers, as it means that the correct GST treatment can be determined by examining the physical attributes of a property rather than having to determine the subjective intention of the purchaser. It also confirms the correctness of long standing industry practice and the ATO view expressed in GSTR 2000/20.
Brady King's Case
- By Abi Mahendranathan
- Published 1/02/2008
- Moore Property News
- Unrated
Application of margin scheme to sale of strata units rejected.