| Disclaimer This edited version has been archived due to the length of time since original publication.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 private ruling
Authorisation Number: 1011732356809
This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.
Ruling
Subject: Revoking annual election
Question
Can you revoke their annual BAS reporting and report their BAS on a monthly basis as from 26 November 2010?
Answer
Yes, you can revoke their GST annual reporting and report their BAS on a monthly basis as from 26 November 2010 under paragraph 151-25(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
You advised us of the following facts:
You are registered for goods and services tax (GST).
You registered for GST with effect from 26 November 2010 and elected to report GST annually.
You have not previously been registered for GST.
You advise that you have registered to report on an annual basis in error. You now request to revoke your annual election and report on a monthly basis effective 26 November 2010.
You advise that your expected GST annual turnover will be $2.5 million which is well in excess of the GST registration threshold of $75,000.
You are not part of a GST group.
Why we have made this decision:
In accordance with Division 151 of the GST Act, you made an election to pay GST on an annual basis.
The duration of an annual tax period election is addressed in section 151-25 of the GST Act. Under subsection 151-25(1) of the GST Act your annual election ceases to have effect if:
a) you revoke it by notifying the Commissioner in the approved form; or
b) the Commissioner disallows it under subsection (3); or
c) on 31 July in a financial year, you are required to be registered; or
d) in a case where you are the representative member of a GST group - the membership of the GST group changes.
In your case, you were required to be registered for GST when you registered at 26 November 2010, as your expected GST annual turnover did meet the GST registration turnover threshold at that date. Consequently, your election for annual reporting will cease under paragraph 151-25(3) of the GST Act as you were required to be registered for GST at 26 November 2010.
Subsection 151-25(5) of the GST Act provides that if paragraph 151-25(1)(c) applies, then your GST annual election is taken to have ceased from the commencement of the financial year referred in that paragraph.
Therefore, you will cease your GST annual election and report your GST monthly from 26 November 2010.