Today the High Court partly heard the Commissioner’s appeal of the Full Federal Court’s decision in Commissioner of Taxation v MBI Properties Pty Ltd [2013] FCAFC 112. The appeal was adjourned to a date to be fixed part way through submissions by the respondent taxpayer.

The principal issue in the appeal is whether the purchaser of a reversionary estate in land (which is leased) makes a “supply” to the lessee within the meaning in s 9-10 of the GST Act. In the appeal, the Commissioner’s essential submission was that by submitting to and being bound to the covenants in the lease, in particular providing exclusive possession and quiet enjoyment of the premises, the purchaser made a supply.

The transcript of the hearing can be accessed here.

The documents filed by the parties are as follows:

• Commissioner’s submissions – my post discussing the submissions can be accessed here
• Commissioner’s chronology
• Taxpayer’s submissions – my post discussing the submissions can be accessed here
• Commissioner’s reply