A public ruling, when issued, is the published view of the Commissioner of State Revenue (the Commissioner) on the particular topic to which it relates. It therefore replaces and overrides any existing private rulings, memoranda, manuals and advice provided by the Commissioner in respect of the issue(s) it addresses.
Where a change in legislation or case law (the law) affects the content of a public ruling, the change in the law overrides the public ruling—that is, the Commissioner will determine the tax liability or eligibility for a concession, grant or exemption, as the case may be, in accordance with the law.
A contract for sale of a commercial office building owned by a property development company provides that the sale price is $2 million. No separate amount for GST is payable under the contract, even though the vendor will be liable for GST on the sale. If the parties are dealing with each other at arm’s length so that the consideration for the transaction is not less than the unencumbered value of the property, the dutiable value is $2 million.
A transfer of land from a father to his daughter as a gift is executed on 1 August with the land’s unencumbered value being $350,000. The dutiable value is $350,000.
Same as for Example 1 except that the contract price is stated at $2 million plus GST. The dutiable value is $2 million dollars plus the GST component.
On 1 August, the owner of an industrial shed contracts to sell the property. The agreement provides for $5.1 million plus an amount equal to GST. The parties have agreed to adopt the margin scheme. If the parties are dealing with each other at arm’s length so that the consideration may be taken to be not less than the unencumbered value of the property, the dutiable value is $5.1 million plus the GST amount on the margin. Evidence will be required from the parties as to the amount of the margin and the GST payable on the margin.
Commissioner of State Revenue
Date of issue: 24 February 2009
|Public Ruling||Issued||Dates of effect|
|DA011.1.1||24 February 2009||24 February 2009||Current|
|Supersedes Revenue Ruling DA 24.1||1 March 2002||1 March 2002||23 February 2009|