Compliance program 2011-12

Property transactions and GST

We are concerned about incorrect reporting of property transactions and whether GST is being reported correctly in relation to the construction and sale of retirement villages. We will be conducting approximately 10 risk reviews of large companies engaging in major property transactions.

As part of our overall property audit program we will seek to identify and take action on taxpayers who:

• obtain non-complying margin scheme valuations that reduce GST payable on property sales.
• are outside the property sector who occasionally undertake property transactions. We encourage taxpayers to adopt robust governance approaches to correctly classify, capture and report these transactions.
• attempt to carve out or separate particular supplies in an uncommercial manner in relation to retirement village operators that may result in an additional GST benefit as outlined in Taxpayer Alert 2010/7.

Sections within Large businesses

• Good tax corporate governance
• Working together
• Obtaining certainty
• Cooperative compliance
• Corporate restructures mergers and acquisitions
• Foreign residents
• Inappropriate outcomes involving consolidation
• Profit shifting
• Private equity - exiting Australia
• GST and international and cross-border transactions
• Non-resident withholding tax
• Stapled group financing
• Taxation of financial arrangements (TOFA)
• Financial supplies and GST
• Foreign partnerships
• Black-hole expenditure
• Exploration expenditure
• Tax and capital losses
• Research and development claims
• Property transactions and GST
• Superannuation funds
• Alternative fuels