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Edited version of private advice
Authorisation Number: 1052118205642
Date of advice: 12 May 2023
Ruling
Subject: GST - supply of land
Question 1
Will the sale of the land be a taxable supply under section 9-5 of the A New Tax System (Goods and Service Tax) Act 1999 (GST Act) by Entity A and Entity B (Entities A&B), acting in their own capacity?
Answer
No, Entities A&B are not making a taxable supply of the land.
Question 2
Where Entities A&B issue notices under section 14-255 of Schedule 1 of the Tax Administration Act 1953 (TAA 1953) as agent for the supplier of the land and within the scope of their authority, and those notices state that GST withholding does not apply, would Entities A&B be liable for an administrative penalty under subsection 284-75(4) of Schedule 1 of the TAA 1953?
Answer
No, Entities A&B would not be liable for an administrative penalty under subsection 284-75(4) of Schedule 1 of the TAA 1953 if they have made statements that are false or misleading as an authorised representative or agent for the supplier and they have acted within the scope of their authority
This ruling applies for the following period:
XX XXX 20XX to XX XXX 20XX
Relevant facts and circumstances
Entity A is registered for GST.
Entity B is not registered for GST.
Relevant legislative provisions
A New Tax System (Goods and Service Tax) Act 1999 section 9-5
A New Tax System (Goods and Service Tax) Act 1999 section 9-40
Taxation Administration Act 1953 section 14-255
Taxation Administration Act 1953 section 284-25
Taxation Administration Act 1953 section 284-75
Reasons for decision
Question 1
You are liable for GST on any taxable supplies that you make. You make a taxable supply under section 9-5 of the GST Act 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.
Based on the information provided, Entities A&B have not made a taxable supply under section 9-5 of the GST Act.
Question 2
Subsection 284-75(4) of Schedule 1 of the TAA 1953 provides that you are liable to an administrative penalty if:
(a) you make a statement to an entity other than:
(i) the Commissioner; and
(ii) an entity exercising powers or performing functions under a *taxation law (other than the *Excise Acts); and
(b) the statement is, or purports to be one that:
(i) is required or permitted by a taxation law (other than the Excise Acts); or
...
(iii) ...; and
(c) the statement is false or misleading in a material particular, whether because of things in it or omitted from it.
Where the statement is made by an authorised representative or agent on behalf of the entity responsible for making the statement, the statement is treated as having been made by that entity.
Based on the information provided, Entities A&B would not be liable for a penalty under subsection 284-75(4) of Schedule 1 of the TAA 1953 if a false or misleading statement has been made when issuing GST withholding notices as an authorised representative or agent and they are acting within the scope of their authority.
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