The Government has just issued a consulation paper headed “GST treatment of property in possession of a mortgagee”.
It is asking for views on whether “there an alternative way to better achieve the Government’s policy objective of a representative of an incapacitated entity being liable for GST for supplies of property in their possession or control belonging to a corporation”.
The Government claims that amendments made to GST legislation in December 2009 had “unintended consequences” for the business mortgage lending sector. It announced in May 2011 that it would amend the GST law “to ensure that the provisions dealing with the GST treatment of property in possession or control of a mortgagee operate as intended and reduce compliance costs, particularly for entities in the mortgage lending sector”.
Closing date for submissions: 6 July 2011.
For a copy of the paper CLICK HERE.
|Mail:||The General Manager, Indirect Tax Division, The Treasury, Langton Crescent, PARKES ACT 2600|
|Enquiries:||Enquiries can be initially directed to Ms Joanne Kennedy|
|Phone:||02 6263 2079|
If the proposed amendment goes ahead, it will take effect from 1 July 2012. However, the amendment has, in reality, been made already, as a result of the ATO Interpretive Decision (ATO ID 2010/224) issued in December 2010.