Disclaimer
This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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: 1012669007830

Ruling

Subject: GST and the supply of real property by a liquidator

Question

Is the sale of the property a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999?

Answer

Yes, the sale of the property is a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999.

Relevant facts and circumstances

The relevant facts include all documents and materials provided in the private ruling application.

The company was involved in the purchase, development and sale of real property.

You were appointed liquidator of the company.

At the time of your appointment, the company owned a vacant block located of land. You intend to sell the property using a standard sale of land contract.

The company is registered for GST.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 section 9-5.

A New Tax System (Goods and Services Tax) Act 1999 section 58-10.

Reasons for decision

The sale of real property is subject to GST if it is a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). That is, if:

The sale of the vacant block of land will be for consideration (ie payment), it is connected with Australia, the company is registered for GST and the sale of the property is neither GST-free nor input taxed under any provision in the GST Act. Therefore, the sale will be subject to GST if it is made 'in the course or furtherance of an enterprise'. The company was involved in the development and sale of real property. Therefore, the sale of a vacant block of land is 'in the course of' that enterprise. There is nothing to suggest that the property has been used for capital purposes. Even if it was a capital asset of the company, the sale would still be subject to GST.

Consequently, the sale of the property is a taxable supply under section 9-5 of the GST Act.

Pursuant to section 58-10 of the GST Act it is the representative of an incapacitated entity who is liable to pay the GST on a taxable supply made during the course of the appointment. Therefore, you, as liquidator of the company will be liable to pay the GST on the sale of the property.

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).