Goods and Services Tax Ruling

GSTR 2012/2A2 - Addendum

Goods and services tax: financial assistance payments

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Addendum

This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Goods and Services Tax Ruling GSTR 2012/2 to take account of the Full Federal Court decision in AP Group Limited v. Commissioner of Taxation [2013] FCAFC 105, which considered the GST treatment of payments made by motor vehicle manufacturers or distributors to the taxpayer (motor vehicle dealerships).

The Addendum also amends GSTR2012/2 to update the case references section.

GSTR 2012/2 is amended as follows:

1. Paragraph 15

After the paragraph; insert:

15A. Further, in identifying the character of the connection, the word 'for' ensures that not every connection between supply and consideration meets the requirements for a taxable supply. That is, merely having any form of connection of any character between a supply and payment of consideration is insufficient to constitute a taxable supply.^[10A]

2. Paragraph 121

After the paragraph; insert:

121A. Further, in identifying the character of the connection, the word 'for' ensures that not every connection between supply and consideration meets the requirements for a taxable supply. That is, merely having any form of connection of any character between a supply and payment of consideration is insufficient to constitute a taxable supply.^[64A]

3. Case References

Insert:

-

AP Group Limited v. Commissioner of Taxation [2013] FCAFC 105; 2013 ATC 20-417; (2013) 214 FCR 301

This Addendum amends GSTR 2012/2 to explain the Commissioner's view of the law as it applies both before and after the date of issue.

Commissioner of Taxation
3 September 2014

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References

ATO references:
NO 1-5LEFC64