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GST and apportionment in complex transactions
Published on 01 Aug 17 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
For the purposes of the goods and services tax, a transaction which would be regarded, in a practical business sense, as a single supply of goods or services may be comprised of several components, some of which are taxable and some not. ollowing a commercial approach, Australian courts have resolved the questions of identification and characterisation of supply by examining a transaction/supply from a business and commonsense perspective, paying due deference to the legal realities. Where the supply has “separately identifiable parts” and none are integral, ancillary or incidental, an apportionment exercise will be necessary between the taxable and non-taxable parts of the supply. As with Luxottica, an apportionment will be necessary where there is a single supply but one or more parts are taxable, while others are non-taxable. It is likely that the appropriate method of apportionment will be one that is reasonable and supportable in the particular circumstances, having regard to the commercial and legal context in which the transaction occurs.
Author profiles
Rashelle Seiden
As a revenue law specialist, Rashelle focuses on tax litigation, including tax appeals, administrative review, recovery proceedings and tax-related criminal proceedings. In addition, she advises and represents clients in matters concerning administrative law, trusts, corporate and commercial law, bankruptcy and insolvency. Rashelle has appeared in many high-profile cases in the High Court of Australia, the Federal Court of Australia and the NSW Court of Appeal. In 2013, she was appointed Senior Counsel for the State of NSW. Rashelle was listed in the Doyle’s Guide 2016 as a Recommended Taxation Senior Counsel, and a Leading Taxation Senior Counsel in 2017. Rashelle is also a Principal Member, and member of the Appeal Panel, of the NSW Civil and Administrative Tribunal. - Current at 09 February 2018
Nayiri Apkarian,
The Tax Institute is Australia's leading professional association and educator in tax providing the best resources, professional development and networks.