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Edited version of private advice
Authorisation Number: 1012623416877
Ruling
Subject: Entitlement to input tax credit in relation to purchase of property - subsections 9-30(2) and (4) of the GST Act
The Commissioner has ruled on the following issues:
Question 1
Is T Ltd as Trustee for the R Unit Trust entitled to claim an input tax credit in respect of the acquisition of the Property from X Ltd pursuant to a Contract of Sale of Real Estate (Contract)?
Answer 1
No, T Ltd is not entitled to claim an input tax credit in respect of the acquisition of the Property from X Ltd pursuant to the Contract.
Question 2
If T Ltd is entitled to claim an input tax credit, will the Commissioner of Taxation (Commissioner) exercise the discretion pursuant to subsection 29-70(1B) of the GST Act to treat a particular document as a valid tax invoice?
Answer 2
As T Ltd is not entitled to claim an input tax credit in respect of the acquisition of the Property, the question of whether the Commissioner will exercise the discretion pursuant to subsection 29-70(1B) of the GST Act to treat a particular document as a valid tax invoice does not arise.
Question 3
If the answer to Question 1 is 'no', is T Ltd entitled to use the margin scheme?
Answer 3
Yes, T Ltd is entitled to use the margin scheme.