Division 48 – GST groups
48.1 What this Division is about
Subdivision 48A – Formation and membership of GST groups
International cases
Copthorn Holdings Ltd v Revenue & Customs [2015] UKFTT 405 – VAT Group registration – Second challenge of a refusal on the part of HMRC to admit two group companies into the VAT group on a retrospective basis – problems created by errors made by companies in the Appellant group, particularly during a period where there had been numerous changes of personnel in the finance department – Appeal allowed
48.10 Membership requirements of a GST group
Adcon Resources Vic Pty Ltd and Commissioner of Taxation [2022] AATA 2629-goods and services tax – GST grouping –part of the same 90% owned group – whether the two companies proposing to form a GST group met the company ownership requirements – start date of GST group -– decisions under review affirmed
48.15 Relationship of companies and non-companies in a GST group
Subdivision 48B – Consequences of GST groups
Cases
Confidential and Commissioner of Taxation [2012] AATA 408 – at [21]-[33]: s 49-40 modifies the usual rules as to liability for GST – for transactions between members of a GST group there is “deemed” to be no taxable supply only for the purposes of calculating liability
International Cases
The Prudential Assurance Company Ltd v Revenue and Customs 2021] UKFTT 50 – Supply of investment management services within VAT group – supplier leaving the group – performance fees attributable to services provided while member of the VAT group – invoiced in years following cessation of group membership – whether liable to VAT
Virgin Media Limited v Revenue and Customs [2020] UKFTT 30 – whether payment handling charge imposed by one member of a VAT group with respect to a taxable supply made by another member of the VAT group were exempt supplies – whether the VAT grouping provisions had the effect of characterising a supply to a non-member of the group as if it were part of a single supply by the representative member – whether there is a separate supply of payment handling services – held a single taxable supply of services by the representative member and payment handling charge is part of the consideration paid – appeal dismissed
Lloyds Banking Group Plc v Revenue and Customs [2019] EWCA Civ 485 – whether claim for overpaid VAT can be made by the supplier who has left the GST Group or whether the claim must be made by the representative member – impact of the dissolution of the VAT group
Revenue and Customs v Taylor Clark Leisure Plc [2018] UKSC 35 – whether the representative member of the VAT Group is to be treated as having made claims for repayment of overpaid VAT where another company, which was formerly a member of the VAT group, made the relevant claims – where the representative member now a dormant company and the VAT group had been disbanded
Revenue and Customs v BMW (UK) Holdings Ltd [2016] UKFTT 434 – grouping – claim for overpaid tax where company leaves VAT group – correct entity to make claim – last representative member
Commissioners of Customs and Excise v Thorn Materials Supply Ltd [1998] UKHL 23 – VAT consequences of sale transactions between members of VAT Group
48.45 Who is entitled to input tax credits
International Cases
BAA Ltd v Revenue & Customs [2013] EWCA 122 – VAT – whether representative of VAT Group entitled to input tax credits for services received by member entity at the time when the member entity was not part of the group – whether member company carrying on an economic activity at the time it acquired the services – whether there was a “direct and immediate” link between the acquisition of services and the outward taxable supplies by the VAT Group – case analysis
Svenska International Plc v Commissioners of Customs and Excise [1999] UKHL 23; [1999] 2 All ER 906; [1999] 1 WLR 769 – VAT group, input tax credits, time of supply
Commissioners of Customs and Excise v Thorn Materials Supply Ltd and Thorn Resources Ltd [1998] UKHL 23; [1998] 3 All ER 342 – treatment of transactions between members of VAT Group on entry into contract but not grouped on completion, time of supply
48.51 Consequences of being a member of a GST group for part of a tax period
48.52 Consequences for a representative member of membership change during a tax period
48.53 Consequences of changing a representative member during a tax period
48.55 GST groups treated as single entities for certain purposes
48.57 Tax invoices that are required to identify recipients
Subdivision 48C – Administrative matters
48.70 Changing the membership etc of GST groups
48.71 Approval of early day of effect of forming, changing etc GST Groups
48.73 Tax periods of GST groups with incapacitated members
48.75 Effect of representative member becoming an incapacitated entity
Subdivision 48D – Ceasing to be a member of a GST Group
48.110 Adjustments after you cease to be a member of a GST group
48.115 Changes in extent of creditable purpose after you cease to be a member of a GST group
Division 49 – GST religious groups
49.1 What this Division is about
Subdivision 49A – Approval of GST religious groups
49.5 Approval of GST religious groups
49.10 Membership requirements of a GST religious group
Subdivision 49B – Consequences of approval of GST religious groups
49.30 Supplies between members of GST religious groups
49.35 Acquisitions between members of GST religious groups
49.45 Changes in the extent of creditable purpose
49-50 GST religious groups treated as single entity for certain purposes
Subdivision 49C – Administrative matters
49-70 Changing the membership etc of GST religious groups
49.75 Revoking the approval of GST religious groups
49.80 Notification by principal members
49.85 Date of effect of approvals and revocations
49.90 Notification by the Commissioner
Division 50 – GST treatment of religious practitioners
50.1 What this Division is about
50.5 GST treatment of religious practitioners
Division 51 – GST joint ventures
51.1 What this Division is about
Rulings and Determinations
GSTR 2004/2 – Austlii – Goods and services tax: What is a joint venture for GST purposes?
GSTD 2004/2 – Austlii – Goods and services tax: Are all supplies made by the entity nominated as the joint venture operator to entities that are participants in the GST joint venture to be treated as if they are not taxable supplies?
Subdivision 51-A – Formation of and participation in GST joint ventures
51.5 Formation of GST joint venture
GST Regulations
51.5.01 Specified purposes for GST joint ventures
51.7 Participants in GST joint ventures
51.10 Participation requirements of a GST joint venture
Subdivision 51B – Consequence of GST joint ventures
51.35 Who is entitled to input tax credits
International cases
D-Win Computer Systems Inc v The Queen 2013 TCC 187 – claim by joint venture partner for input tax credits in respect of money spent by joint venture partner for acquisitions made by joint venture operator – effect of joint venture rules and deeming provisions
51.45 Additional net amounts relating to GST joint venture
51.50 GST returns relating to GST joint ventures
51.52 Consolidation of GST returns relating to GST joint ventures
51.55 Payments of GST relating to GST joint ventures
51.60 Refunds relating to GST joint ventures
Subdivision 51C – Administrative matters
51.70 Changing the participants etc of GST joint ventures
51.75 Approval of early day of effect of forming, changing etc GST joint ventures
Subdivision 51D – Ceasing to be a participant in, or an operator of, a GST joint venture
51.110 Adjustments after you cease to be a participant in a GST joint venture
51.115 Changes in extent of creditable purpose after you cease to be a member of a GST joint venture
Division 54 – GST branches
54.1 What this Division is about
Subdivision 54A – Registration of GST branches
54.5 Registration of GST branches
54.10 The date of effect of registration of a GST branch
54.15 GST branch registration number
Subdivision 54B – Consequences of registration of GST branches
54.40 Additional net amounts relating to GST branches
54.45 Net amounts of parent entities
54.50 Tax invoices and adjustment notes
54.55 GST returns relating to GST branches
54.60 Payments of GST relating to GST branches
54.65 Refunds relating to GST branches
Subdivision 54C – Cancellation of registration of GST branches
54.70 When an entity must apply for cancellation of registration of a GST branch
54.75 When the Commissioner must cancel registration of a GST branch
54.80 The date of effect of cancellation of registration of a GST branch
54.85 Application of Subdivision 25-B
54.90 Effect on GST branches of cancelling the entity’s registration
Division 57 – Resident agents acting for non-residents
57.1 What this Division is about
57.7 Agreement to apply this Division to all supplies through a resident agent
57.10 Who is entitled to input tax credits
57.20 Resident agents are required to be registered
57.25 Cancellation of registration of a resident agent
57.30 Notice of cessation of agency
57.35 Tax periods of resident agents
57.40 GST returns for non-residents
57.45 Resident agents giving GST returns
57.50 Non-residents that belong to GST groups
Division 58 – Representatives of incapacitated entities
58.1 What this Division is about
58.5 General principle for the relationship between incapacitated entities and their representatives
58.10 Circumstances in which representatives have GST-related liabilities and entitlements
Cases
Cooper Builders Pty Ltd as trustee for the Cooper & Oxley Builders Unit Trust (in Administration) and Commissioner of Taxation [2020] AATA 4325 – input tax credits – representatives of incapacitated entities – whether administrators entitled to input tax credits – where acquisitions made by an incapacitated entity but consideration provided by administrators – held administrators not entitled to input tax credits – decision affirmed
Rosebridge Nominees Pty Ltd (in liq) and Commissioner of Taxation [2019] AATA 426 – GST – time limits on entitlement to claim input tax credits and GST refunds – whether special rules relating to representatives of incapacitated entities provide exemption from time limits – whether reviewable GST decision – objection decision affirmed
Deputy Commissioner of Taxation v PM Developments Pty Ltd [2008] FCA 1886 – whether liquidator personally liable for GST on supply by company (under Division 147 which was subsequently repealed and replaced by Division 58).
Overseas cases
Stiassny and others v Commissioner of Inland Revenue [2012] NZSC 106 – receivers of partners not personally liable for GST of the partnership – whether entitled to recover GST paid because of mistake of law – case analysis – decision of Court of Appeal – Commissioner of Inland Revenue v Stiassny [2012] NZCA 93 – whether receivers of partners personally liable to pay GST on sale by partnership, whether right to refund on the basis that GST paid because of a mistake of law – case analysis – decision of High Court – Stiassney v Commissioner of Inland Revenue [2010] NZHC 1935
Simpson v Commissioner of Inland Revenue [2012] NZCA 126 – whether receivers of mortgagee selling real property personally liable for GST – case analysis – decision of High Court – Simpson v Commissioner of Inland Revenue [2011] NZHC 490
58.15 Adjustments for bad debts
58.20 Representatives are required to be registered
58.25 Cancellation of registration of a representative
58.30 Notice of cessation of representation
58.35 Tax periods of representatives
58.40 Effect on attribution rules of not accounting on a cash basis
58.45 GST returns for representatives of incapacitated entities
58.50 Representatives to give GST returns for incapacitated entities
58.55 Incapacitated entities not required to give GST returns in some cases
58.60 Representatives to notify Commissioner of certain liabilities
58-65 Money available to meet representatives liabilities
58.70 Protection for actions of representatives
Division 60 – Pre-establishment costs
60.1 What this Division is about
60.5 Input tax credit for acquisitions and importations before establishment
60.10 Registration etc not needed for input tax credits
60.15 Pre-establishment acquisitions and importations
60.25 Attributing the input tax credit for pre-establishment acquisitions
60.30 Attributing the input tax credit for pre-establishment importations
60.35 Application of Division 129
Division 63 – Non-profit sub-entities
63.1 What this Division is about
63.5 Entities that may choose to apply this Division
63.10 Period for which a choice has effect
63.15 Consequences of choosing to apply this Division
63.20 Non-profit sub-entities may register
63.25 Registration turnover threshold for non-profit sub-entities
63.27 Application of particular provisions relating to charities etc
63.30 When non-profit sub-entities must apply for cancellation of registration
63.35 When the Commissioner must cancel registration of non-profit sub-entities
63.40 Effect on adjustments of becoming a non-profit sub-entity
63.45 Effect on adjustments of ceasing to be a non-profit sub-entity
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