Tax Commissioner Michael D’Ascenzo today issued two taxpayer alerts warning the community that the Tax Office is closely examining uncommercial property arrangements that try to obtain unintended GST benefits.
The alerts cover arrangements where a land owner and its associate delay invoicing and payment for construction services in an attempt to claim input tax credits and/or avoid GST.
Using an associate in this way is often a feature of aggressive tax planning arrangements. People who enter into these arrangements run the risk that their tax benefit may be cancelled in which case substantial penalties will apply.
Taxpayer alerts 2009/4 and 2009/5 are available from the Tax Office website http://www.ato.gov.au/atp/
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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