12.1 Is a supply of shares in a share management fishery a financial supply?
Non-interpretative – straight application of the law
A supply of shares in a share management fishery is not a financial supply.
Item 10 of subregulation 40-5.09(3) of the GST Regulations provides that the provision, acquisition or disposal of securities is a financial supply. The definition of securities includes shares in a body. A share management fishery falls within the definition of a body.
A share in a company is defined in the GST Act as ‘a share in the capital of the company, and includes stock’. A share in the capital of the company represents a shareholder’s interest in, or right to, the capital of the company. The capital of the company represents an accumulated wealth of the company and shareholders’ ownership in the company. Although shareholders in the share management fishery have an interest in the fishery, their interest is not in the capital of the fishery. The shareholders’ interest is in the quota which is allocated to them in proportion to their shareholding.