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You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1051271010775

Date of advice: 30 November 2017

Ruling

Subject: GST and Enterprise

Question 1

Whether the services you supply as part of your position on a board/committee are subject to GST?

Answer

Yes.

Relevant facts and circumstances

    ● You were an employee.

    ● You were asked to hold a position on a board that is located in the indirect tax zone.

    ● This position on the board was not connected to your employment.

    ● You did not receive remuneration for sitting fees because of your employment.

    ● Your role and responsibilities for the position on the board is at a high level and done in a recurrent or regular nature. They are also systematic and organised and carried out in a professional and business-like manner.

    ● When you left your employment, you became entitled to receive remuneration for your position on the board.

    ● These payments are not subject to any PAYG withholding.

    ● After you became entitled to receive remuneration, you commenced a different enterprise as a sole trader and registered for GST.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) 1999 Section 9-5

Reasons for decision

GST is payable on any taxable supplies that you make. Section 9-5 provides you make a taxable supply if:

    (a) you make the supply for consideration; and

    (b) the supply is made in the course or furtherance of an enterprise that you carry on; and

    (c) the supply is connected with the indirect tax zone; and

    (d) you are registered, or required to be registered for GST.

However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.

When you became registered for GST, the services you supplied in your position on the board satisfies the conditions for a taxable supply:

    ● the services were made for consideration or remuneration;

    ● the services were made in the course of an enterprise you carry on;

    ● the supply was made or connected with the “indirect tax zone”; and

    ● the services are not GST-free or input taxed supplies.

As a sole trader, it did not matter that you registered for GST for another enterprise you carried on. When the conditions for section 9-5 are satisfied for any supply you make, the supply will be taxable and is subject to GST.