Your shopping cart is empty
Sticking to the facts: Creditable purpose after Rio Tinto
Published on 01 Nov 15 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The Full Court of the Federal Court in Rio Tinto v FCT, a goods and services tax case, held that the taxpayer was not entitled to claim input tax credits on acquisitions made to provide leased accommodation to its workforce in its Pilbara iron ore mining operations. This was on the basis that the acquisitions related wholly to the input taxed supply of leased accommodation and so were excluded under s 11-15(2)(a) of the A New Tax System (Goods and Services Tax) Act 1999.
In this article, the author argues that the judgment raises significant issues on the interpretation of s 11-15(2)(a) and changes the way in which that interpretation has previously been understood in certain respects. The article examines the judgment and the key principles for the application of s 11-15(2)(a). The article applies these principles in the context of a number of practical examples.
Author profile
Matthew Strauch CTA
Matthew Strauch, CTA, is a Tax Partner at PwC and leads its National Indirect Taxes practice, with over 20 years’ experience in advising on indirect taxes in both Australia and the UK. Matt advises in all areas of Australian GST with a specific focus on the financial services and advising on M&A and transactions. He also regularly advises clients on GST governance, technology and operations and has significant experience in assisting clients in relation to ATO reviews and audits and in controversy matters. - Current at 27 July 2023
The Tax Institute is Australia's leading professional association and educator in tax providing the best resources, professional development and networks.