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  • 2.15 Where a manager (not being an employee of a principal contractor) is appointed to supervise the work of subcontractors and is entitled to receive a percentage (for example 10%) of the total value of the construction contract, will the manager now be entitled to claim 10% of the GST-inclusive value of the construction or will the manager's entitlement remain 10% of the GST-exclusive value of the construction contract?

    Non-Interpretative - straight application of the law

    ATO position

    The question as to whether a manager is entitled to a given percentage of the GST-inclusive or GST-exclusive value of a contract is not a question that may be determined by reference to the Goods and Services Tax legislation. It is a question that may only be resolved by reference to the contract entered into between the manager and the party who appointed or engaged the manager for a given project. Accordingly, the Commissioner of Taxation is unable to provide any advice in relation to this contractual matter.

      Last modified: 12 Jun 2012QC 16479