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Edited version of your private ruling
Authorisation Number: 1012478427477
Ruling
Subject: Leasing of land
Subject: Goods and Services Tax (leasing of land)
The Commissioner of Taxation was asked to rule on the following questions.
Question 1
Does an entity (entity 1) make a taxable supply to another entity (the other entity) under the Agreement to Lease?
Question 2
Does entity 1 make a taxable supply to the other entity under the Agreement to Construct?
Question 3
Is entity 1 entitled to claim input tax credits on constructions costs relating to the Agreement to Construct?
Question 4
Does Division 129 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) operate to adjust any input tax credits which may be claimed by entity 1 relating to construction costs subject to this ruling application?
The Commissioner ruled that:
Answer 1
No, entity 1 does not make a taxable supply to the other entity under the Deed of Agreement to Lease.
Answer 2
Yes, entity 1 does make a taxable supply to the other entity under the Agreement to Construct.
Answer 3
Yes, entity 1 is entitled to claim input tax credits on constructions costs relating to the taxable supply it makes under the Agreement to Construct.
Answer 4
No, Division 129 of the GST Act doesn't apply in this case in relation to any input tax credits that relate to the construction costs.
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