ATO’s practical guidance on GST for customer owned banking institutions
The Australian Taxation Office (ATO) has released a Practical Compliance Guideline, PCG 2017/15, dealing with the application of the goods and services tax (GST) for customer owned banking institutions. The Guideline is intended to remove complexity and minimise compliance costs for customer owned banking institutions in relation to apportionment of their partly creditable acquisitions. Specifically, the Guideline explains when the Commissioner of Taxation will accept, as a matter of practical administration, a rate of no more than 18 per cent as the extent of creditable purpose for certain acquisitions in relation to tax periods starting on and from 1 July 2017.
Supply of a going concern
The Administrative Appeals Tribunal (AAT) in MSAUS Pty Ltd as the Trustee for the Melissa Trust v Commissioner of Taxation  AATA 1408 has held that, based on analysis of the contract of sale for an apartment which was subject to a lease, the transaction was not a ‘supply of a going concern’. Accordingly, Division 135 of the A New Tax System (Goods and Services Tax) Act 1999 did not operate to impose an increasing adjustment on the purchaser, and instead as agreed by the parties to the contract, the margin scheme applied to the sale of the apartment