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  • 2.10 A subcontractor who is in breach of a construction contract pays liquidated damages to the head contractor. Is the payment of liquidated damages by the subcontractor consideration for a taxable supply?

    Non-Interpretative - straight application of the law

    ATO position

    No. For an explanation of the reasons for the answer, see paragraphs 110 to 114 of. GSTR 2001/4 Goods and services tax: GST consequences of court orders and out-of-court settlements.

      Last modified: 12 Jun 2012QC 16479