Goods and Services Tax Ruling

GSTR 2005/4W

Goods and services tax: arrangements of the kind described in Taxpayer Alerts TA 2004/6 and TA 2004/7: use of the Grouping or Margin Scheme provisions of the GST Act to avoid or reduce the Goods and Services Tax on the sale of new residential premises

Please note that the PDF version is the authorised version of this withdrawal notice.

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Notice of Withdrawal

Goods and Services Tax Ruling GSTR 2005/4 is withdrawn with effect from today.

1. This Ruling provides the Commissioner's view in relation to arrangements referred to in Taxpayer Alert TA 2004/6: Use of the Grouping provisions of the GST Act to avoid Goods and Services Tax (GST) on the sale of new residential premises and Taxpayer Alert TA 2004/7: Use of the Grouping provisions and the Margin Scheme to avoid or reduce the Goods and Services Tax (GST) on the sale of new residential premises.

2. Subsections 75-11(1) and (2) were inserted into the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) in 2005 to address the arrangements covered by this Ruling. Goods and Services Tax Ruling GSTR 2006/8 Goods and services tax: the margin scheme for supplies of real property acquired on or after 1 July 2000 provides the Commissioner's view on the application of subsections 75-11(1) and (2) of the GST Act.

3. The decision of the High Court in Commissioner of Taxation v. Unit Trend Services Pty Ltd [2013] HCA 16 confirmed that Division 165 of the GST Act operated to negate the GST benefit obtained by a scheme similar to the arrangements covered by this Ruling.

4. Accordingly, GSTR 2005/4 is no longer current and is therefore withdrawn.

Commissioner of Taxation
29 March 2017

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

previously issued in draft form as GSTR 2004/D5

References

ATO references:
NO 1-AVJWI48

ISSN: 2205-6157

Related Rulings/Determinations:

TR 2006/10
GSTR 2005/5
GSTD 2008/1

Subject References:
GST anti-avoidance
GST groups
GST input tax credits and creditable acquisitions
GST margin scheme
GST new residential premises
GST property and construction
GST sale of residential premises

Case References:
Chaudhri v. FC of T
[2001] FCA 554
2001 ATC 4214
(2001) 47 ATR 126

CIC Insurance Ltd v. Bankstown Football Club
(1997) 187 CLR 384

Commissioner of Taxation v. Hart and Anor
[2004] HCA 26
2004 ATC 4599
55 ATR 712

Commissioner of Taxation v. Spotless Services Ltd
(1996) 186 CLR 404
96 ATC 5201
34 ATR 183

Federal Commissioner of Taxation v. Consolidated Press Holdings Ltd (No. 1)
(1999) FCA 1199
99 ATC 4945
42 ATR 575

Isherwood v. Butler Pollnow Pty Ltd
(1986) 6 NSWLR 363

Marana Holdings Pty Ltd v. Federal Commissioner of Taxation
[2004] FCA 233
2004 ATC 4256
55 ATR 161

Marana Holdings Pty and Anor v. FC of T
[2004] FCAFC 307
2004 ATC 5068
57 ATR 521

Network Ten Pty Limited v. TCN Channel Nine Pty Ltd
[2004] HCA 14

Other References:
Taxpayer Alert TA 2004/6: Use of the Grouping provisions of the GST Act to avoid Goods and Services Tax (GST) on the sale of new residential premises
Taxpayer Alert TA 2004/7: Use of the Grouping provisions and the Margin Scheme to avoid or reduce the Goods and Services Tax (GST) on the sale of new residential premises
Explanatory Memorandum to the A New Tax System (Goods and Services Tax) Bill 1998
Explanatory Memorandum to the Indirect Tax Legislation Amendment Bill 2000

GSTR 2005/4W history

	Date:	Version:	Change:
	14 September 2005	Original ruling
	4 August 2010	Consolidated ruling	Addendum
	31 October 2012	Consolidated ruling	Addendum
You are here	29 March 2017	Withdrawn

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Goods and Services Tax Ruling

GSTR 2005/4W

Goods and services tax: arrangements of the kind described in Taxpayer Alerts TA 2004/6 and TA 2004/7: use of the Grouping or Margin Scheme provisions of the GST Act to avoid or reduce the Goods and Services Tax on the sale of new residential premises

Notice of Withdrawal

References

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