Sticking to the facts: Creditable purpose after Rio Tinto
Source: Taxation In Australia Journal Article
Published Date: 1 Nov 2015
The Full Court of the Federal Court in Rio Tinto v FCT, a goods and services tax case, held that the taxpayer was not entitled to claim input tax credits on acquisitions made to provide leased accommodation to its workforce in its Pilbara iron ore mining operations. This was on the basis that the acquisitions related wholly to the input taxed supply of leased accommodation and so were excluded under s 11-15(2)(a) of the A New Tax System (Goods and Services Tax) Act 1999.
In this article, the author argues that the judgment raises significant issues on the interpretation of s 11-15(2)(a) and changes the way in which that interpretation has previously been understood in certain respects. The article examines the judgment and the key principles for the application of s 11-15(2)(a). The article applies these principles in the context of a number of practical examples.
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Details
- Published By: Matt Strauch CTA
- Published On:1 Nov 2015
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