| Disclaimer 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 advice
Authorisation Number: 1051731525639
Date of advice: 06 August 2020
Ruling
Subject: Sale of a going concern
Question
Was the sale of your enterprise, a GST-free sale of a going concern under section 38-325 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes.
Relevant facts and circumstances
· You sold your enterprise on XX XX XXXX
· You and the purchaser agreed in writing that the sale was of a going concern.
· Included in the contract of sale was, an on-going lease of the business premise, trading stock and all equipment.
· The purchaser of the business was registered.
· The business was carried on up to and including the date of settlement.
Relevant legislative provisions
Subsection 38-325(1) of A New Tax System (Goods and Services Tax) 1999
Subsection 38-325(2) of A New Tax System (Goods and Services Tax) 1999
Reasons for decision
As all the conditions under subsections 38-325 (1) and (2) were met, this sale was a GST-free sale of a going concern.