NTLG GST Sub-group

View meeting updates below:

  • Inaugural GST Advisory Group Meeting

    The inaugural meeting of the GST Advisory Group was held at ATO National Office on 10 October 2013, with the Institute represented by Michael Croker (Head of Tax Policy). This group is one of eight Stewardship Committees in the new ATO Consultation framework, and is chaired by Deputy Commissioner James O’Halloran.

    Stewardship Committees focus on matters of national interest issues to do with the health or effective operation of the tax system (as distinct from technical issues encountered in practice, which generally should be raised through the ATO’s consultation hub).

    The first GST Advisory Group meeting discussed various issues, including:

    • The new consultation framework and its operation in practice, including identifying potential topics which could be addressed at future meetings
    • GST issues arising out of an ATO study of the Health of the System Assessment (HOTSA)
    • ATO GST ‘tax gap’ analysis (broadly, the tax gap is the difference between the theoretical GST liability, based on external consumption data adjusted for various features of the tax law, and actual GST revenue collected by the ATO)

    For more details on the above issues or other topics discussed, please refer to the 10 October 2013 agenda for the meeting. The ATO has provided a record of key messages arising from this meeting.

    The next meeting of the GST Advisory Group meeting is expected to be held in February 2014.

  • NTLG GST Sub-group meeting on 14 March 2013

    On 14 March 2013, Norman Kang of the Institute and John Haig (John Haig Pty Ltd) represented the Institute at the National Tax Liaison Group (NTLG) GST Sub-group meeting in Melbourne. Key issues discussed at the meeting included:

    • Appointment of Australian resident Public Officer for overseas entities
    • Division 81 – Class ruling CR 2013/1 and ATO ID 2012/87
    • GST treatment of transactions under the carbon pricing mechanism
    • Subsection 9-17(3)(c) of the GST Act – implications of the phrase ‘does not exceed the supplier’s anticipated or actual costs of making those supplies
    • Call options and nominations in relation to acquisitions of real property
    • FCT vs Qantas Airways Limited [2012] HCA 41 – are there further implications of this decision impact statement?
    • Alternative Dispute Resolution  Facilitation Pilot re Indirect Tax Objections

    For more details on the above issues or other topics discussed, please refer to the 14 March 2013 agenda for the meeting, which includes the ATO's responses prior to the meeting.

    The updated ATO responses will be available once the draft minutes of the meetings are approved. They will be published on the ATO website and a link provided in the Tax Bulletin.

    The next meeting will be on 4 June 2013. If members have any issues they would like to raise, please email them to Tax Group.

  • NTLG GST Sub-group meeting on 5 December 2012

    On 5 December 2012, Donna Bagnall of the Institute and Michael Evans (Taxsifu) represented the Institute at the National Tax Liaison Group (NTLG) GST Sub-group meeting in Sydney. Key issues discussed at the meeting included:

    • Creditable purpose – entity costs – GSTR 2008/1
    • Can a ‘representative of an incapacitated entity’ elect to register for GST purposes where the representative is ‘not required to be registered’?
    • ATO audit activity focus and issues/mistakes identified
    • Private rulings registry – GST private rulings
    • Treatment of acquisition of capital items under paragraph 38-250(2)(b) – ATO ID 2012/78
    • GST contra transactions: accounting treatment and BAS label reporting
    • Review into the ATO’s use of early and alternative dispute resolution
    • Addendum to Miscellaneous Taxation Ruling MT 2009/1.

    For more details on the above issues or other topics discussed, please refer to the 5 December 2012 agenda for the meeting, which includes the ATO's responses prior to the meeting.

    The updated ATO responses will be available once the draft minutes of the meetings are approved. They will be published on the ATO website and a link provided in the Tax Bulletin.

    The next meeting will be on 12 March 2013. If members have any issues they would like to raise, please email them to Tax Group.

  • NTLG GST Sub-group meeting on 12 September 2012

    On 12 September 2012, Norman Kang of the Institute and Michael Evans (Taxsifu) represented the Institute at the NTLG GST Sub-group meeting in Melbourne. Key issues discussed at the meeting included:

    • Section 69-10 input tax credits limitations for luxury cars
    • Hospital treatment – meals as part of accommodation
    • Clarification of characterisation of funding arrangement and when payments are consideration for a taxable supply – examples in ATO published guide for government to government payments
    • In what circumstances does the Commissioner contend that a ‘contract’ will be a supply?
    • Issues of PS LA 2012/2 – Change of Trustee
    • Period of review – s 155-45 of Schedule 1 of Tax Administration Act 1953
    • Update on the recently published indirect tax sharing agreement reasonable allocation guidelines

    For more details on the above issues or other topics discussed, please refer to the 12 September 2012 agenda for the meeting, which includes the ATO's responses prior to the meeting.

    The updated ATO responses will be available once the draft minutes of the meetings are approved. They will be published on the ATO website and a link provided in the Tax Bulletin.

    The next meeting will be on 5 December 2012. If members have any issues they would like to raise, please email them to Tax Group.

  • NTLG GST Sub-group meeting on 13 June 2012

    On 13 June 2012, Donna Bagnall of the Institute and Michael Evans (Taxsifu) represented the Institute at the NTLG GST Sub-group meeting in Canberra.  Key issues discussed at the meeting included:

    • Tax invoices – the Institute reiterated our concerns that the proposed approach to tax invoices is not an acceptable solution, with a key issue being that the law ‘cures’ only the input tax credit entitlement, but this still leaves the supplier in the position where they have issued an invalid (misleading) tax invoice. The Institute believes that an alternative interpretation of, or an amendment to, subsection 29-70(1B) of the GST Act is required
    • Division 81 – the Institute noted our views about the difficulties and ambiguities that are associated with using the technical word 'imposed'  to connote the time at which a tax, fee or charge is payable
    • Implementation of trustee services amendments to the GST Regulations – members of the NTLG GST sub-committee raised considerable concerns about the time frame in which these amendments had to be implemented, and the lack of ATO guidance that exists to be relied upon as the basis of the implementation, so that they can proceed with confidence and certainty that further costly changes will not be required in the future
    • Specialist advisor authorisation to represent taxpayers – the ATO confirmed that there is an accepted ATO process for a specialist registered tax agent or BAS agent to represent a taxpayer in dealings with the ATO, without the need to be registered on the portal, provided they have a letter of authorisation from the client (and pass proof of identity tests)
    • Treatment of obligations to undertake construction works or other improvements on land, e.g. development leases and infrastructure contracts – the Institute sought clarification on this issue to remove the uncertainty that has been created since the ATO’s withdrawal of GSTR 2008/2 and Bill No 9 (Gloxinia amendments)
    • GST implications of clean energy measures – the Institute requested the ATO to provide more detailed guidance on the GST treatment of all of the various supplies and other dealings in relation to carbon units, permits, and credits, given that we expect many anomalies and unintended outcomes to arise based on the GST law as it stands (such as those we raised in our submission to Treasury). The Institute agreed to prepare and submit a matrix to the ATO to commence the process of identifying any problem areas as early as possible.

    The top three issues identified as ‘significant’ at this meeting to be reported to the main NTLG forum were tax invoices, Division 81 and implementation of trustee services amendments to the GST Regulations.

    For more details on the above issues or other topics discussed, please refer to the 13 June 2012 agenda for the meeting, which includes the ATO's responses prior to the meeting.

    The updated ATO responses will be available once the draft minutes of the meetings are approved.  They will be published on the ATO website and a link provided in the Tax Bulletin.

    The next meeting will be on 12 September 2012. If members have any issues they would like to raise, please email them to Tax Group.

  • NTLG GST Sub-group meeting on 21 March 2012

    On 21 March 2012, Donna Bagnall of the Institute and Michael Evans (Taxsifu) represented the Institute at the NTLG GST Sub-group meeting in Sydney. Key issues discussed at the meeting included:

    • MT 2010/1 and s 105-65 of the Tax Administration Act 1953
    • Decision impact statements v public rulings
    • Cancellation of GST registration
    • Australian Business Register and ASIC company registrations
    • Escalating an audit /review issue prior to assessment
    • Quality assurance in ATO audit/BAS review/ refund integrity in SME sector
    • GST-free going concerns

    For more details on the above issues or other topics discussed, please refer to the 21 March 2012 agenda for the meeting, which includes the ATO's responses prior to the meeting.

    The updated ATO responses will be available once the draft minutes of the meetings are approved. They will be published on the ATO website and a link provided in the Tax Bulletin.

    The next meeting will be on 13 June 2012. If members have any issues they would like to raise, please email them to Tax Group.

  • NTLG GST Sub-group meeting on 6 December 2011

    On 6 December 2011, Donna Bagnall of the Institute and Michael Evans (Taxsifu) represented the Institute at the NTLG GST Sub-group meeting in Melbourne. Key issues discussed at the meeting included:

    • Administrative practice in relation to the verification of GST refunds (Multiflex decision update) 
    • Tax invoices – proposed changes in ATO approach to the ruling on tax invoices 
    • Indirect tax sharing agreement guidelines – reasonable allocation 
    • Application of penalties and interest to government agencies 
    • GST-free going concerns 
    • Preserving the status quo – MT 2010/7 and PSLA 2002/12 
    • GST treatment of earnout rights 
    • Withdrawal of Commissioner’s appeal in Commissioner of Taxation v Tricare Group Pty Ltd – Implications for GSTR 2011/1

    For more details on the above issues or other topics discussed, please refer to the 6 December 2011 agenda for the meeting, which includes the ATO's responses prior to the meeting.

    The updated ATO responses will be available once the draft minutes of the meetings are approved. They will be published on the ATO website and a link provided in the Tax Bulletin.

    The next meeting will be on 21 March 2012. If members have any issues they would like to raise, please email them to Tax Group.

  • NTLG GST Sub-group meeting on 14 September 2011

    On 14 September 2011, Michael Evans (Taxsifu) represented the Institute at the NTLG GST Sub-group meeting in Canberra. Key issues discussed at the meeting included: 

    • Role of NTLG GST Sub-committee in raising examples of apparent inconsistencies in administration 
    • GST-free going concerns 
    • References to reliance on rulings provisions in appropriation rulings 
    • GST implications of Spriggs’ case 
    • GST Treatment of earnout rights 
    • Employee accommodation – ATO’s progress and current practice in its examination of the GST treatment of the provision of employee accommodation

    For more details on the above issues or other topics discussed, please refer to the 14 September 2011 agenda for the meeting, which includes the ATO's responses prior to the meeting.

    The updated ATO responses will be available once the draft minutes of the meetings are approved. They will be published on the ATO website and a link provided in the Tax Bulletin.

    The next meeting will be on 6 December 2011. If members have any issues they would like to raise, please email them to Tax Group.

  • NTLG GST Sub-group on 15 June 2011

    On 15 June 2011, Donna Bagnall of the Institute and Michael Evans (Taxsifu) represented the Institute at the NTLG GST Sub-group meeting in Sydney. Key issues discussed at the meeting included: 

    • Employee accommodation – ATO’s progress and current practice in its examination of the GST treatment of the provision of employee accommodation 
    • 'Preserving the status quo' policy – PSLA 2002/12 and MT 2009/D1 
    • GSTR 2011/1 Development, lease and disposal of a retirement village tenanted under a 'loan lease' arrangements following the decision in The Retirement Village Company and Commissioner of Taxation 
    • Meaning of facilitation and arrangement – whether there can be more than one facilitator 
    • GST implications of the High Court decision in the Spriggs case for ‘offices’ held in the course of an enterprise

    For more details on the above issues or other topics discussed, please refer to the 15 June 2011 agenda for the meeting, which includes the ATO's responses prior to the meeting.

    The updated ATO responses will be available once the draft minutes of the meetings are approved. They will be published on the ATO website and a link provided in the Tax Bulletin.

    The next meeting will be on 14 September 2011. If members have any issues they would like to raise, please email them to Tax Group.

  • NTLG GST Sub group meeting on 29 March 2011

    On 29 March 2011, Donna Bagnall of the Institute and Michael Evans (Taxsifu) represented the Institute at the NTLG GST Sub-group meeting in Canberra. Key issues discussed at the meeting included:

    • Alignment of indirect taxes to the income tax rulings regime update
    • Specification of the part or whole of supply or supplies that are agreed to be 'of a going concern' for the purposes of paragraph 38-325(1)(c)
    • Credit card payment fees and consideration for supplies
    • Payments to a responsible entity in connection with a managed investment scheme
    • GST on real property transactions post Sunchen’s case

    For more details on the above issues or other topics discussed, please refer to the 29 March 2011 agenda for the meeting, which includes the ATO's responses prior to the meeting.

    The updated ATO responses will be available once the draft minutes of the meetings are approved. They will be published on the ATO website and a link provided in the Tax Bulletin.

    The next meeting will be on 15 June 2011. If members have any issues they would like to raise, please email them to Tax Group.