Mastering GST Clauses: Key Drafting Essentials
GST clauses are sometimes seen as a simple and standard item which can be replicated from transaction to transaction. This session explores the complexities that can arise in specific circumstances including:
- Common mistakes with GST clauses
- Risks with poorly drafted GST clause
- Consequences when a GST clause is missing
- GST withholding clauses for real property contracts
- Issues when contracting with government agencies which are notional taxpayers
- Drafting for foreign exchange issues
- Lessons from case law
The Margin Scheme: Complexities in Practice
The margin scheme is central to the property development industry. This session reviews the key concepts in understanding how the margin scheme framework operates, including:
- The role of tax invoices
- Understanding the requirement for an agreement in writing
- Record keeping:
- calculating the margin
- calculating the consideration for the acquisition of subdivided land or stratum title units
- Dealing with amalgamated land
- Effect of the margin scheme – no input tax credits available to purchaser
- Valuation issues – is the valuation provided on a GST inclusive basis?
- Getting GST advice early – what questions should the adviser ask?
- Lessons from recent case law
Sale of a Going Concern - Risk Management Checklist
The sale of a going concern still raises compliance issues. The transaction has to be considered from the supplier’s perspective. This session covers an essential compliance checklist for gaining the GST exemption, including:
- Have the parties agreed the sale will be of a sale of a going concern?
- What if seller has different entities owning different parts of the business?
- Recovery of GST where going concern exemption does not apply
- Purchaser and vendor warranting they remain registered until time of completion
- Transfer of employees on transfer of going concern
- Dealing with partly tenanted or vacant buildings
- Can a tenant of commercial property purchase that property as going concern?
- Can a corporate trustee of a fund satisfy the going concern exemption?
- Property has a commercial and residential lease – is whole property a going concern?
- Case update
Long-term Leases and Development Agreements: The GST Challenges
The grant of long-term leases over government land can give rise to interesting GST challenges. This is especially the case where the government imposes requirements for works to be done as a precondition of granting the long-term lease. This session considers:
- The characteristics of development lease arrangements
- Understanding GSTR 2015/2:
- what is non-monetary consideration?
- determining the value of non-monetary consideration
- accounting for GST
- Taxpayer Alert 2018/3 – what types of arrangements are the ATO cautioning against?
- Understanding the different rules for not-for-profits and commercial developers
- Lessons from Barton Partners and Belconnen Lakeview class actions
ATO Compliance Regime – Understanding the Regulator from a GST Perspective
This session examines the ATO compliance approach and the best way to manage the client ATO relationship when dealing with GST compliance for property transactions. It includes:
- The ATO GST compliance approach – an overview
- Understanding the types of data the ATO uses in assessing compliance
- GST record keeping and reporting of transactions
- Practical case studies