| 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: 1051762795963
Date of advice: 20 November 2020
Ruling
Subject: GST and going concern
Question
Is the supply of a 'Farmout Interest' in the mining permit and associated assets by you to the Recipient pursuant to the Farmout Agreement, a GST-free going concern pursuant to section 38-325 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes, the supply of the 'Farmout Interest' in the mining permit and associated assets by you to the Recipient pursuant to the Farmout Agreement is a GST-free going concern pursuant to section 38-325 of the GST Act.
Relevant facts and circumstances
You and the Recipient entered into an Farmout Agreement under which you as the 'Farmor' wishes to transfer and convey, and the Recipient as the 'Farmee' wishes to acquire, the Farmout Interest on the terms and conditions set forth in the Farmout Agreement.
In your circumstances, the Commissioner considers that your supply of the 'Farmout Interest' in the mining permit and associated assets to the Recipient pursuant to the Farmout Agreement is a GST-free going concern pursuant to section 38-325 of the GST Act.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 - section 38-325