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ATO Interpretative Decision

ATO ID 2002/988 (Withdrawn)

Goods and Services Tax

GST and registration of a partner in a partnership
FOI status: may be released
  • This ATO ID is a straight application of the law and does not contain an interpretative decision.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is the entity, a partner in a partnership, required to be registered under section 23-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when the only activity of that entity is being a partner in a partnership that is registered for goods and services tax (GST)?

Decision

No, the entity is not required to be registered under section 23-5 of the GST Act when the only activity of that entity is being a partner in a partnership that is registered for GST.

Facts

The entity is a partner in a partnership. The only activity of the entity is being a partner in a partnership. It does not do any other activity that constitutes the carrying on of an enterprise. The partnership is registered for GST.

Reasons for Decision

Under section 23-5 of the GST Act, one of the requirements for an entity to be registered is that an entity must be carrying on an enterprise. In this case, the entity's activities as a partner in a partnership do not amount to carrying on an enterprise in its own right. Under section 184-5, anything done by a partner by way of supply, acquisition or importation in his capacity as partner of the partnership is taken to be by done by the partnership and not by the partner. It is the partnership that is carrying on the enterprise, not the partner.

As an individual, the entity is not doing any other activity that constitutes the carrying on of an enterprise.

Therefore, the entity is not carrying on an enterprise. As such, the entity is not required to be registered under section 23-5 of the GST Act when the only activity of that entity is being a partner in a partnership that is registered for GST.

Date of decision:  25 March 2002

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 23-5
   section 184-5

Related ATO Interpretative Decisions
ATO ID 2002/11
ATO ID 2001/680

Keywords
Goods and services tax
GST registration
Required to be registered

Business Line:  GST

Date of publication:  30 October 2002

ISSN: 1445-2782

history
  Date: Version:
  25 March 2002 Original statement
You are here 9 December 2005 Archived

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