ATO Interpretative Decision

ATO ID 2002/881

Goods and Services Tax

GST and GST returns where company ownership changes
FOI status: may be released

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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 company, required to submit a GST return under subsection 31-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when the ownership of the entity changes before the end of the tax period?

Decision

No, the entity is not required to submit a GST return under subsection 31-5(1) of the GST Act when the ownership of the entity changes before the end of the tax period. The entity is required to submit one GST return at the end of the tax period covering the whole of the tax period.

Facts

The entity is a company that is registered under the Corporations Act 2001. It is registered for goods and services tax (GST) and lodges its GST returns quarterly.

The ownership of the company changed part way through a tax period.

Reasons for Decision

Subsection 31-5(1) of the GST Act provides that an entity that is registered or required to be registered, must give to the Commissioner a GST return for each tax period.

For GST purposes, subsection 184-1(1) of the GST Act defines 'entity' to include a body corporate and other unincorporated association or body of persons.

Section 195-1 of the GST Act defines a company to mean a body corporate or any other unincorporated association or body of persons. The entity is a company that is registered under the Corporations Act 2001. Accordingly, the entity (the company) is an 'entity' for GST purposes.

Section 27-5 of the GST Act provides that the tax periods which apply are each period of 3 months ending on 31 March, 30 June, 30 September or 31 December in each year. As the entity lodges its GST returns quarterly, it must lodge one return for each of the above tax periods.

Although the ownership of the entity has changed, the entity remains an 'entity' for GST purposes. The entity does not submit a GST return part way through the tax period when ownership of the entity (the company) changes. Therefore, at the end of the tax period, the entity must submit a GST return under subsection 31-5(1) of the GST Act covering the whole of the tax period.

[Note: Under subsection 56(2) of the Taxation Administration Act 1953 (TAA), the public officer of a company is answerable for doing everything that is required to be done by the company under an indirect tax law.]

Date of decision: 20 March 2002

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   Section 27-5
   subsection 31-5(1)
   subsection 184-1
   Section 195

Taxation Administration Act 1953
subsection 56(2)

Corporations Act 2001
the Act

Keywords
Goods & services tax
GST returns, payments & refunds
GST returns
GST body corporates
GST tax periods

Business Line: GST

Date of publication: 28 August 2002

ISSN: 1445-2782

history

	Date:	Version:
You are here	20 March 2002	Original statement
	21 July 2006	Archived

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