On Friday, the ATO published ATO ID 2013/9 “GST and registration of a representative of an incapacitated entity when the incapacitated entity is neither registered nor required to be registered”.

The ID takes the view that a representative of an incapacitated entity cannot register for GST under s 23-10 of the GST Act in that capacity if the incapacitated entity is neither registered nor required to be registered.

Section 58-20 of the GST Act provides that a representative of an incapacitated entity is required to be registered in that capacity if the incapacitated entity is registered or required to be registered. Further, s 58-25(1) provides that the Commissioner must cancel the registration of a representative of an incapacitated entity if the Commissioner is satisfied that the representative is not required to be registered in that capacity. The intent of these provisions appears to be to ensure that the representative entity “stands in the shoes” of the incapacitated entity, so that the representative entity’s obligation to register for GST mirrors those of the incapacitated entity – the representative entity has no independent entitlement to register for GST.