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  • Tribunal rejects gold GST claims

    The Australian Taxation Office (ATO) can announce that the Administrative Appeals Tribunal (AAT) has rejected a taxpayer’s claim for GST refunds in relation to their claim to be operating a gold refinery. The decision is final, with the appeal period having now ended.

    Deputy Commissioner Jeremy Geale said the case forms an important part of the ATO’s ongoing compliance activities in the precious metals industry.

    “We welcome the decision of the AAT. We have been working hard to protect honest businesses in the precious metals industry by tackling the significant non-compliance of some participants who have been incorrectly claiming GST refunds.”

    In this case the taxpayer was arguing that they had purchased gold as a gold refiner. The AAT found that the taxpayer was not a refiner at the relevant time. It was also not satisfied that the taxpayer had in fact acquired scrap gold.

    It follows two other recent AAT decisions concerning GST that have affirmed the Commissioner’s decision to disallow input tax credits claimed by precious metal industry participants.

    “These are complex cases that require difficult and lengthy investigative work. This decision, along with the two earlier decisions, should provide the community reassurance that the ATO is doing the work that is needed in this industry to address significant non-compliance.

    “We will continue to work hard to ensure that the GST system is not being used inappropriately in any industry. Where widespread concerns are raised and significant risks are identified, we will commit resources and our broad range of investigative techniques to ensure a level-playing field for all participants.” Mr Geale said.

    The AAT decision can be read in full hereExternal Link.

    If you want to raise concerns about possible GST non-compliance you can phone our confidential hotline on 1800 060 062 or email reportataxscheme@ato.gov.au.

    Last modified: 05 Jul 2019QC 59555