GST - Grants, appropriations and property transactions - Full day

It's been sometime since we have hit the road with a GST series but with a LOT of recent activity in court cases, rulings and now new legislation there are a number of critical issues to discuss.

Grants

Since day dot of the GST grants have been a major issue for all government and non-profit entities involved in receiving and/or providing grants.  Confusion around the issue of "supply" has made it almost impossible to have any confidence in the GST treatment. 

After a number of attempts to clarify matters the Tax Office released a draft ruling in November last year. With the new ruling being finalised as we "speak" for its May release.  It is intended that this session should once and for all bring clarity to the GST treatment of grants!

What this session will cover:

• The ‘old’ rules
• The new grants ruling
• The ‘new’ rules and how they are different
• An analytical framework of the ‘new’ rules including:
  • What is a “supply”?
  • When is there a “supply for consideration”?
  • Supplies to identifiable recipients and why this is important.
  • Identifying the true recipient of the supply and why it’s important
  • Supplying rights as to supplying an ‘expectation’
  • Non-cash grants
• International comparisons and why they are important
• Practical examples to illustrate the principles.

Appropriations

Similar to grants, the GST treatment of appropriations have been utterly confused with several rulings attempting to clarify the situation. Unfortunately all have failed, including the recent ruling that was released last year.

This came to a head with an unintended consequence from the Court's decision in the TT-Line Case.  This decision effectively changed the way the original legislation was intended to operate and as a result the legislation has now been re-written.

What this session will cover:

• The Full Federal Court's decision in TT-Line Company Pty Ltd v FCT [2009] FCAFC 178 and its implications
• The Tax and Superannuation Laws Amendment (2012 Measures No 1) Bill 2012 and the proposed repeal of s 9-15(3)(c)
• The new s 9-17 and how it affects you
• What is meant by “non-commercial activities of government related entities”?
• What is meant by an “appropriation under an Australian law”?
• The new “non-commercial test” outlined in the proposed new law.
• The new “regulation making power” that is intended to provide flexibility to add other government payments to the list of “appropriations.
• Practical examples to illustrate the new rules.

Property transactions

Mistakes in GST on property are by nature very expensive and with the inherent complexity associated, all too common.  Government and non-profit entities simply can't afford to take their eye of this issue.

There has been considerable action in the courts recently around GST and property.  With numerous changes and a new ruling it is definitely time to re-evaluate how you treat all property sales, purchases and lease arrangements.

What this session will cover:

• Property transactions generally
  • Taxable supplies
  • GST-free supplies
  • Input taxed supplies
  • Out-of-scope supplies
• The new Draft Ruling GSTR 2012/D1
• “Residential premises” and “commercial residential premises” – how did we get to this point?
• The so-called “caravan park” election and how this can save you GST
• Property sales and the GST-free going concern provisions
  • Sales of partially completed developments
  • Sales of commercial residential premises subject to a lease
  • Sales of commercial premises subject to a lease
• The mysteries of the “margin scheme” explained

The wrap

In all, a day that should bring joy, clarity, a great lunch and little less stress around the numbers that go onto your BAS and into your bank account.

Specific to government and non-profit entities, it will also provide a great opportunity to engage with your counterparts from across the state.

CPD Points = 6 (hours)

Presenter

Tony van der Westhuysen BA; LLB; H Dip Tax Law; MBA TaxEd