ATO outlines position on GST after High Court’s Qantas ruling
22 November 2012
The Australian Taxation Office (ATO) says the goods and services tax (GST) treatment of a transaction will not necessarily be affected if goods or services contemplated by a contract are never actually supplied, following the High Court’s recent ruling in the Qantas Airways case.
In its decision impact statement, the ATO said it
still considers earlier cases concerning how to characterise
supplies, such as Travelex Ltd v Commissioner of
Taxation and Saga Holidays Ltd v Commissioner of
Taxation, to be relevant where such
characterisation is necessary to apply the statute in any
"There is nothing in the Qantas decision that would
suggest that supplies need to be dissected into their component
parts, or that the focus of GST should be on contractual rights
and obligations instead of performance," the ATO statement
commissioner considers that the mere failure of a
ticketholder to utilise their rights to transport or of entry
to an event would not have the effect of cancelling a supply
that is made on sale of the ticket."
The case concerned what constituted a supply...
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