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This edited version has been archived due to the length of time since original publication.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.

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Edited version of your written advice

Authorisation Number: 1013090144641

Date of advice: 14 September 2016

Ruling

Subject: GST and extension of time to use margin scheme when supplier is no longer registered with ASIC

Question

Can the agreement for an extension of time to use the margin scheme be signed by you and the respective purchasers?

Answer

Yes. The agreement for an extension of time to use the margin scheme can be signed by you and the respective purchasers.

Relevant facts and circumstances

This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

The Commissioner has extended the period within which you and the purchasers of properties may make an agreement in writing for the margin scheme to apply to the sale.

You are the entity who made the supplies.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 subsection 75-5(1)

Reasons for decision

Subsection 75-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides that the margin scheme applies in working out the amount of GST on a taxable supply of real property that you make by:

if you and the recipient of the supply have agreed in writing that the margin scheme is to apply.

In this case you are the entity that made the supplies. Subsection 75-5(1) of the GST Act provides that the margin scheme applies in working out the amount of GST on a taxable supply of real property that a supplier makes. Therefore, as the supplies were made by you, the agreement for an extension of time to use the margin scheme can be signed by the respective purchasers and by you.

For further explanation see Goods and services tax: dealings in real property by bare trusts (GSTR 2008/3) which explains how the GST Act applies to supplies of real property involving bare trusts and similar trusts where the trustee has limited active duties and acts solely at the direction of the beneficiary or beneficiaries.

GSTR 2008/3 is available on the Tax Office website at www.ato.gov.au.

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