Q: A client is purchasing a commercial property with tenant on a going concern basis so it is GST-free. The client plans to subdivide the land off the back of this block and build three residential townhouses. On what basis does our client calculate the GST purposes margin when selling the properties? (the owner phased the property pre-June 2000 and it has been commercial in the future.)

Q: Section 38-480 refers to the land in question being land on which a farming business has been carried on at least five years preceding the supply. What is the situation if the farming business is not being carried on supply even though the property has been a farm for a longer period than five years? It is a large-scale farming property in the northern Territory that has been subdivided into smaller parcel. The patriarch of the family was the driver for the farming business and the subdivision proposal. He died unexpectedly about 18 months ago and after that, the primary introduction business has not been actively pursued since shortly before the patriarch’s death.

Q: Please advise on how to calculate GST using the margin scheme and the treatment in profit and loss account for tax purposes.

Q: A commercial property is owned as tenants in equal shares by two unrelated parties – A and B. Neither A or B are registered or required to be registered for GST individually. They are registered for GST jointly to this property. If A sells its interest in the property to an unrelated third party (not related to A or B), is it a non-taxable supply by a person who is neither registered nor required to be registered?

Q: A Client completed a contract for the sale of the company (he owns all the shares). The contract contains several requirements for the consideration to be paid, including the sale of the goodwill and other adjustment factors. It also contains a clause that stock will be transferred to the purchaser based on a two-monthly report on the usage of the stock. The total for the stock sold cannot exceed $600,000. The amount excluding GST. Is this stock sale subject to GST or is it part of the sale of a going concern and GST- free?

Q: A client purchased a farm GST-free as it is a farming business on which there was also a residential dwelling. The client then sold the dwelling, which will be moved roughly 30km away. Does the sale of the dwelling attract GST?

Q: The client is a sole trader. They wish to claim GST credits on some business lunches. As they are not an employee, the fringe benefits tax (FBT) regime for entertainment does not apply. Assuming the lunches were business-related, can they claim the GST credits? The client wants to claim GST on motor vehicle expenses, is it permissible (using the cents per kilometer method for tax purposes)?

Q: A client has an unincorporated joint venture (JV) in place between his development company and SMSF that owns land. The SMSF owns the land unencumbered and the development entity is paying for the total cost to real property. The developer is entitled to a “fee” of 1.5% over and above the cost of development. The costs and the fee will only be payable to the developer once the project is complete and the sale proceeds of the project. The landowner (SMSF) will be the legal and beneficial owner. There is a clause in the agreement that the sale proceeds payment will be allocated to any lenders, any other third parties, the developer for costs and fees and the landowner in an order. The question is that is the correct process for the SMSF to bank all sale proceeds and remit the relevant GST and developer to issue a tax invoice to the landowner for their proceeds share?