GST minutes, March 2009

6. Post implementation reviews - GST rulings on development leases and bare trusts

Issues 1.56, 1.57 - raised by Tax Office 19 March 2009

Tax Office request for comment

Under the post implementation review (PIR) process, we consider the success of public rulings in mitigating compliance risks as well as to capture key learnings. As a guide, the information and feedback on rulings we collect could include:

• feedback collected in the Compendium of comments for the draft ruling
• internal feedback from relevant Tax Office areas
• feedback on the ruling collected via the Tax Office website survey
• feedback from consultative committees such as NTLG Sub-committees
• media reports, and
• any other sources appropriate to the particular ruling or rulings.

Member's feedback and comments are sought on the effectiveness of the following two Rulings relating to elements of the GST and Real Property risk:

• GSTR 2008/2 Goods and services tax: development lease arrangements with government agencies
• GSTR 2008/3 Goods and services tax: dealings in real property by bare trusts.

Relevant questions members may wish to comment on include:

• Has the Ruling made the law clearer?
• Has the Ruling answered the question it sets out to answer?
• Were you satisfied with the relevance of the Ruling?
• Were you satisfied with the timeliness of the issuing of the Ruling?
• Were you satisfied with the clarity of the Ruling?
• Were you satisfied with the logic of the Ruling?
• Were you satisfied with the technical accuracy of the Ruling?
• How effective was the Ruling in providing guidance on the issue addressed?

Meeting discussion

Tony Long briefly spoke to this item. He noted that post implementation reviews provided an opportunity for members to make comments on the usability of the rulings being reviewed and said he is happy to receive feedback from members.

TIA queried whether the development leases ruling is subject to litigation and Tony confirmed that it was, and LCA suggested that the ruling on bare trusts should have been broader in scope. It was agreed that members could provide comments out-of-session.

Action item

2009.03.8 Members to provide comments out-of-session regarding the Goods and Services Tax Rulings GSTR 2008/2 (development leases) and GSTR 2008/3 (bare trusts).

Sections within Agenda items

• 1. Introductory matters
• 2. Removal of matters from current issues list
• 3. GST impacts of current economic climate
• 4. Tax Office Compliance Program 2009-10
• 5. Property issues
• 6. Post implementation reviews - GST rulings on development leases and bare trusts
• 7. Hornsby Shire Council Decision
• 8. Resident loans and consideration for the sale of a retirement village
• 9. High Court decision in FCT v Reliance Carpet Co
• 10. GST refunds discussion paper
• 11. GST refund time limit notifications - section 105-55 TAA (1953)
• 12. Refunds and lodgment demand notices
• 13. Recovery of partial input tax credits
• 14. Net interest revenue apportionment method
• 15. Retrospective GST registration cancellation
• 16. GST alternative dispute resolution pilot
• 17. Food classification tools
• 18. Meeting close