WEEK 8 – GST Part 3 Importations Adjustments GST Free Supplies Readings PDF

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LAWS5053 TAXATION WEEK 8 – GST Part 3 Importations Adjustments GST Free Supplies Readings Readings Sadiq 2021 Chapter 20 [20.00] to [25.130] Chapter 25 [25.148] and [25.150], [25.160] to [25.230], [25.240], [25.250] to [25.297], [25.300] to [25.25.310], [25.320] Reading List All references to legislation are to A New Tax System (Goods and Services Tax) Act 1999 unless otherwise stated. Textbook paragraphs (some duplication with issues raised in lecture 7): 20.00 to 25.130 25.148 and 25.150 25.160 to 25.230 25.240 25.250 to 25.297 25.300 to 25.25.310 25.320 ss9-30(1)(a), and 9-30(1)(b)) and 9-30(3) s9-80 Div 38 specifies what are GST free supplies ss 38-185 and 38-190 (exports) invoice defined in s195. This generally is the definition section of the GST Act. 38-325 going concerns. Div 135 read with Commissioner of Taxation v MBI Properties Pty Ltd [2014] HCA 49 ss 40-35 up to and including 40-75 Div 87 long term accommodation s75-5 (subsection1 up to and including 3(a))(Margin scheme) s75-10 s75-14 ss75-20, 30 and 35 Regulation 40 of A New Tax System (Goods and Services Tax) Regulations 2019 (Regs 40.5.01 to 40.5 13) plus Schedule 2 Examples of financial supply and Schedule 3 Examples of supply that is not financial supply Commissioner of Taxation v Luxottica Retail Australia Pty Ltd [2011] FCAFC 20 Fiduciary Ltd and Ors v Morningstar Research Pty Ltd and Ors [2004] NSWSC 381 Travelex Ltd v Commissioner of Taxation [2010] HCA 33 GSTR 2002/5 GSTR 2002/2 GSTR 2012/5

Aurora Developments Pty Ltd v Commissioner of Taxation [2011] FCA 244 Midford and Deputy Commissioner of Taxation [2005] AATA 623 HP Mercantile Pty Limited v Commissioner of Taxation [2005] FCAFC 126 at [13] to [17]. Rio Tinto Services Limited v Commissioner of Taxation [2015] FCAFC 117 Paul J Castan & Son Pty Ltd Atf Castan Investments Unit Trust v FC of T 2016 ATC ¶10-423, Meridien Marinas Horizon Shores Pty Ltd v FC of T [2009] FCA 1594 Chapter 20 [20.00] to [25.130] Chapter 25 [25.148] and [25.150], [25.160] to [25.230], [25.240], [25.250] to [25.297], [25.300] to [25.25.310], [25.320] CH20: TRUSTS AND BENEFICIARIES KEY POINTS

INTRODUCTION • A trust is not a separate legal entity, it refers to a relationship between a trustee and beneficiaries, under which the trustee is obliged to manage the trust assets and activities for the benefit of the beneficiaries

WHAT IS A TRUST?

FIXED TRUSTS • The entitlements of beneficiaries to income and corpus (capital) are predetermined, or fixed, by the terms of the trust deed

DISCRETIONARY TRUSTS • The trustee has an absolute discretion in allocating trust income or capital to a beneficiary each year

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As the beneficiaries of a discretionary trust have no entitlement to trust property until the trustee determines otherwise, the trust provides asset protection in the case of beneficiaries becoming bankrupt

TESTAMENTARY TRUSTS

TAXATION OF TRUSTS • Depends on among other things, who is entitled to the trust income and whether or not they are under a legal disability • Calculate the net income or loss of a trust  losses cannot be distributed, subject to anti-loss trafficking provisions, they may be carried forward in the trust to offset against future income derived by the trust • Net income trusts require it to be determined who the taxpayers are

BENEFICIARY PRESENTLY ENTITLED AND NOT UNDER A LEGAL DISABILITY

INCOME OF THE TRUST ESTATE v NET INCOME

Proportionate and Quantum Views: • Interpretation of the word “share”  proportionate or quantum

Interim Measures in Response to Bamford Case:

Presently Entitled:

• • • • • • •

Statutory Present Entitlement Character of Income Preserved Beneficiary Presently Entitled but Under a Legal Disability No Beneficiary is Presently Entitled Minor Beneficiaries Non-Resident Beneficiaries CGT Events for Trusts

CH21: COMPANIES AND SHAREHOLDERS KEY POINTS...