AYB320 Lecture Notes - Lecture 11: Strata Title, Berlin Outer Ring, Financial Institution
Document Summary
Where certain conditions are satisfied, the sale of a business as a going concern to a registered or required- to-be registered acquirer will be gst free. The main advantage offered by the legislation is that the buyer does not need to finance the gst component of the transaction. Requirement is designed to stop the purchaser from claiming an itc when the vendor believes it is gst free. The agreement that the supply is of a going concern must be explicit and should be expressed in unequivocal terms. The commissioner takes the view that the agreement must be made on or before the date on which the supply is made. The requirement that the recipient must be registered or required to be registered must be satisfied on and from the date of the supply (gstr 2002/5). If the seller is not registered, the sale of the business will not be subject to gst in any event.
