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Edited version of private advice
Authorisation Number: 1051622716482
Date of advice: 20 December 2019
Ruling
Subject: Sale of a going concern
Question
Is your sale of the business and business assets to the business purchaser, pursuant to the provisions of the proposed agreements, a GST-free supply or supplies of a going concern under Subdivision 38-J of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes. Where you sell the business and business assets pursuant to the provisions of the proposed agreements, the sales will qualify as a GST-free supply or supplies of a going concern under Subdivision 38-J of the GST Act.
This ruling applies for the following periods:
From the tax period commencing 1 July 2018 and following.
Relevant facts and circumstances
You operate a large business and you wish to sell it in smaller units as separate enterprises.
Each sale will be conducted on basis that a simultaneous supply of property, assets and a business will occur for each discrete sale.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999
Section 9-20
Section 38-325
Reasons for decision
The enterprises will be supplied such that they operate until settlement and all things necessary will be supplied to the recipient to conduct a business.