Call for end to stamp duty on GST in commercial property transactions
The Real Estate Institute of Victoria (REIV) has called on both the State and Federal Governments to remove what it says is “the tax on tax rort of stamp duty being levied on GST in commercial real estate transactions”. The Institute said that when GST was introduced in 2000, it created an anomaly in which ...more
GST and property transactions: get it right, says ATO
The ATO has warned taxpayers to make sure they correctly report property transactions (including transfers, sales and purchases) on income tax returns and BASs. In the financial year ended 30 June 2010, the ATO said it conducted 3,250 GST reviews and audits that directly related to property transactions, and subsequently raised net GST liabilities of ...more
Raze GST margin scheme, says ICAA
Property developers could face increasing scrutiny from the Tax Office if the GST margin scheme is not simplified or replaced, according to the Institute of Chartered Accountants in Australia (the Institute). “The GST margin scheme is overly complex and heavily reliant on approved valuations, resulting in compliance difficulties for taxpayers, and a risk of ‘tax ...more
Input tax credit denied on property
The AAT has denied a taxpayer an input tax credit for the acquisition of ‘a single storey house with a carport’. The taxpayer purchased the property at which time it was leased to a tenant. In addition, the property was purchased with a development application to construct 10 units. In its BAS for the September 2006 quarter, the taxpayer claimed the credit in respect of the property, which the Commissioner disallowed under section 40-65 of the GST Act and issued an assessment to that effect.
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