ATO Interpretative Decision
ATO ID 2001/279 (Withdrawn)
Goods and Services Tax
GST and Representatives of incapacitated entitiesFOI status: may be released
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This ATO ID is withdrawn as the issue is dealt with in the Representatives of Incapacitated Entities Industry Register and in any event involves a simple application of the legislation and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 entity A, a receiver, required to register for goods and services tax (GST) under section 147-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it is appointed to control some of the assets of entity B and entity B continues to trade in its own right?
Decision
Yes, entity A is required to register for GST under section 147-5 of the GST Act when it is appointed to control some of entity B's assets and entity B continues to trade in its own right.
Facts
Entity A is a receiver. Entity A is appointed as a receiver to control some of the assets of entity B.
Entity B continues to trade in its own right. Entity B is registered for GST.
Reasons for Decision
Under subsection 147-5(1) of the GST Act, a representative of an incapacitated entity is required to be registered for GST in that capacity if the incapacitated entity is registered or required to be registered for GST.
As such, the issue is whether entity A is a representative of an incapacitated entity. In determining this, it is first necessary to establish whether entity A is a representative. The term 'representative' is defined in section 195-1 of the GST Act. The definition of a representative includes a receiver.
Therefore, as entity A is a receiver, it is a representative.
Next, it is necessary to determine whether entity B is an incapacitated entity. The term 'incapacitated entity' is defined in section 195-1 of the GST Act. An incapacitated entity includes 'an entity that has a representative'.
It has already been established that entity A is a representative. Therefore, since a representative, entity A, has been appointed to control some of the assets of entity B, entity B is an incapacitated entity.
Accordingly, entity A is a representative of an incapacitated entity, entity B.
In this case, as entity B is registered for GST, entity A is also required to register for GST in its capacity as a representative of entity B.
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 147-5
subsection 147-5(1)
section 195-1
Keywords
Goods & services tax
ISSN: 1445-2782
| Date: | Version: | |
| 8 June 2001 | Original statement | |
| You are here | 29 June 2007 | Archived |