• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 10/4/2013

Australia - GST for supplies, incentive payments 

October 4: The KPMG member firm in Australia prepared reports on the following developments (read the 2013 reports by clicking on the hyperlinks provided below):
  • Requirements for retaining an input tax credit (ITC) - Australia’s Commissioner issued a practice statement law administration (PSLA 2013/3) establishing the requirements for a taxpayer to retain an ITC for a supply initially treated incorrectly as taxable by the supplier.

    Read a September 2013 report

  • Federal courts address goods and services tax (GST) implication of incentive payments made by distributors to dealers - A federal court addressed whether incentive payments made by automotive distributors to motor vehicle dealers were consideration for a “supply” that was subject to GST. Conclusions to be drawn from this case include: (1) receipt of consideration does not automatically result in GST becoming payable; (2) consideration received from multiple parties—the receipt of two mutually exclusive negotiated contractual amounts—may contribute to the GST liability for a single supply; and (3) consideration provided to third parties in the supply chain requires careful analysis.

    The case is AP Group Limited v. Commissioner of Taxation [2013] FCAFC 105. Read an October 2013 report

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