Full Federal Court decision in AP Group appeal – case analysis now available

As noted in my post last night, the Full Federal Court has handed down its decision in AP Group v Commissioner of Taxation [2013] FCAFC 105. The decision is still not available on Austlii, but my analysis of this important decision can be accessed here.

While the Court dismissed both appeals on the basis that no error of law of the Tribunal was identified, the judgment provides a detailed analysis of the construction of the phrase “supply for consideration” in s 9-5(a) of the GST Act and the interaction between sections 9-5, 9-10 and 9-15 of the GST Act. As noted in my earlier post, the Court considered that s 9-5(a) requires two elements to be satisfied, namely that:

  • the consideration must be “in connection with” the supply; and
  • the supply must be “for” the consideration.

The Court rejected the Commissioner’s contention that only first element needed to be satisfied. Accordingly, the Court appeared to support a narrower view of the requisite “nexus” between supply and consideration, so as to found a taxable supply.

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