Rights or rewards: GST and loyalty programs in Australia
Source: Taxation In Australia Journal Article
Published Date: 1 Oct 2011
Until the recent release of a draft GST ruling, the only public document from the Australian Taxation Office which considered the GST consequences arising from transactions under a loyalty reward program was a media release issued by the Commissioner in 2000. There have, however, been a number of private rulings issued on the subject to particular taxpayers. In addition, a number of VAT cases dealing with loyalty programs which have been handed down in the United Kingdom recently have highlighted the lack of guidance in Australia. The Commissioner's recent draft ruling, GSTR 2011/D3, released on 24 August 2011, now provides the Australian Taxation Office's public view of how transactions under loyalty reward programs should be treated for GST purposes.
This article analyses the draft ruling, the differences between this now public view of the Commissioner to prior private rulings, and examines the possible consequences of these differences for the loyalty program industry.
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Details
- Published By: Jadie Teoh CTA
- Published On:1 Oct 2011
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
Copyright Statement
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags
Share this page