GST and Dodgy Property Arrangements: Tax Office Spells Out Views

Entities sometimes enter into dodgy arrangements that use their associates in an attempt to secure input tax credits on the construction of residential premises for lease and then defer the corresponding GST liability, in some cases indefinitely. The Tax Office has issued a ruling which sets out the Commissioner of Taxation's views on how the general anti-avoidance rules in the GST law would apply to these arrangements.