On 19 August 2012 the Full Federal Court handed down its decision in Unit Trend Services Pty Ltd v Commissioner of Taxation [2012] FCAFC 112.  This was an appeal by the taxpayer from the decision of the Tribunal in The Taxpayer and Commissioner of Taxation [2010] AATA 497. In a majority decision (2:1), the Full Court allowed the taxpayer’s appeal and found that Division 165 did not apply because the GST benefit was “attributable” to a choice, election, application or agreement that is expressly provided for in the GST law.  The taxpayer did not appeal the finding of the Tribunal that obtaining the GST benefit was the dominant purpose (and principal effect) of entering into the scheme.

My analysis of this decision can be found here.