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This edited version has been archived due to the length of time since original publication.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

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Ruling

Subject: GST instalments

Question:

Will the Commissioner exercise his discretion under subsection 162-25(3) of the A New tax System (Goods and Services Tax) Act 1999 (GST Act) to allow you to make a late election to pay goods and services tax (GST) by instalments?

Answer: No

Relevant facts:

You are registered for GST.

You report GST quarterly.

You were not provided with the GST instalment option in your September quarterly activity statement.

You are a small business entity for the current financial year as your aggregated turnover for the previous year was less than $2 million.

You are not in a net refund position.

Our records show you have activity statements which are outstanding and overdue.

Reasons for decision:

Under subsection 162-15(1) of the GST Act an entity may make an election by notifying the Commissioner in the approved form to pay GST by instalments if it satisfies the eligibility requirements set out in subsection 162-5(1) of the GST Act.

Under subsection 162-5(1) of the GST Act an entity is eligible to elect to pay GST by instalments if the entity

    · is a small business entity with an annual turnover (including the turnover of any related entities) of less than $2 million, or, be an enterprise (other than a business) with a GST turnover of $2 million or less

    · does not report and pay GST monthly

    · has a current GST lodgement record of at least four months

    · has complied with all its obligations to give GST returns to the Commissioner, and

    · not be in a net refund position

In your case, you have not complied with your tax obligations. You have activity statements which are outstanding and overdue. You do not satisfy the eligibility requirements set out in subsection 162-5(1) of the GST Act to use the GST instalment option. Therefore, you cannot make an election to pay GST by instalments under subsection 162-15(1) of the GST Act.

You must choose to report your quarterly GST using option1 for full reporting or option 2 for a simplified reporting. You may find more information in the 'Quarterly GST options' fact sheet (NAT 4149-07.2010).


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