Sterling Guardian Pty Limited v Commissioner of Taxation

Federal Court of Australia|2005-08-24|Before: Stone J

The Applicant's contention has the result that although it makes a profit from its dealing in (ie value is added to) the units, it claims a refund: it "double dips" a reduction in the margin and its input tax credit claim: Sale proceeds 39,361,704 Land costs (4,000,000) Non-land costs (excl GST ) (29,928,325) Margin 5,433,379 GST on margin 493,944

Taxable supplies to trust 26,400,000 Input tax credits (2,400,000)

GST refund claimed (1,906,056)

Moreover, if the Applicant's contention were correct, the margin would be based on what was actually the consideration for the non-land supplies, not the notional ex-GST cost: Sale proceeds 39,361,704 Land costs (4,000,000) Non-land costs (incl GST) (32,328,325) Margin 3,033,379 GST on margin 275,762

Taxable supplies to trust 26,400,000 Input tax credits (2,400,000)

GST refund claimed (2,124,238)

Body Corporate and Community Management Act 1997(Qld)

Strata Schemes (Freehold Development) Act 1973(NSW)

Sterling Guardian Pty Limited v Commissioner of Taxation [2005] FCA 1166

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