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Edited version of private advice
Authorisation Number: 5010065314807
Date of advice: 8 January 2020
Ruling
Subject: GST and supply of rent roll as a going concern
Question 1
Will the supply of a portion of the rent roll of a Real Estate business be a supply of a going concern under section 38-325 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when sold to an unrelated party?
Question 2
Will the seller have provided all necessary documents for the continued operation under section 38-325 of the A New Tax System GST Act 1999?
Question 1&2
Answer
Yes
This ruling applies for the following period:
1 July 2019 - 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
The Trustee (You) carry on an enterprise of providing real estate services at a leased premise.
The rent roll relates to this existing business that you are conducting.
Currently, approximately 99% of the rental monies are deposited into your Trust account and you expect that the new owner will continue with this practice.
You are registered for the goods and services tax (GST).
You are considering selling a portion of the rent roll of your real estate business as a going concern to an unrelated buyer.
There is currently no contract or sale in place as you are awaiting the outcome of the GST private ruling application.
On settlement, you will provide the buyer with all the necessary files such as:
· landlord details,
· computer records and
· all other necessary documentation in relation to the properties
Upon the sale of the business, you envisage that one of the staff members will be transferred to the new owner.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Section 38-325