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Edited version of private advice
Authorisation Number: 1012655962997
Ruling
Subject: GST and outstanding business activity statements
Question 1
Is M1 required to lodge Business Activity Statements (BAS') for the relevant tax periods?
Answer
No.
Relevant facts and circumstances
You consider that M1 is not required to lodge BAS' for the tax periods. This is on the basis that the only supplies made by M1 in these tax periods were made through a 'resident agent'.
You confirm that the only supplies made during the relevant tax periods that were connected with Australia were supplies where M2 is acting as 'resident agent' for M1 in respect of these supplies and has advised M1 that it has accounted for GST on the supplies of advertising in its own BAS' for the relevant tax periods.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 57-40
A New Tax System (Goods and Services Tax) Act 1999 section 31-5
Reasons for decision
Summary
M1 has satisfied its BAS lodgement responsibilities as its resident agent lodged the BAS' for the relevant periods.
Detailed reasoning
Section 31-5 of the GST Act requires GST registered entities to lodge BAS'. However, section 31-5 is subject to the special rule in paragraph 57-40(1) of the GST Act; a law that deals with non-residents' BAS'.
Essentially, a non-resident is not required to lodge a BAS for a particular tax period if either:
• the non-resident's net amount for that period is zero; or
• the only taxable supplies and taxable importations made by the non-resident that are attributable to that period were made through a resident agent.
In the case of the later, the supplies and importations are reported in the non-resident's agent's BAS for that period. We accept that for the relevant tax periods M1's supplies were reported in its resident agent's BAS' and therefore M1 is not required to lodge BAS' for the same periods.