Input tax credits and GST avoidance

Media Release - Nat 04/031

Businesses claiming large GST input tax credits on the sale of second-hand goods are being investigated by the Tax Office.

Tax Commissioner Michael Carmody said these arrangements appear to be designed to exploit the second-hand goods provisions of the GST law to obtain large input tax credits even though GST has not been paid on the goods.

More details are contained in a Taxpayer Alert issued today and on the Tax Office website, www.ato.gov.au/atp

Further advice will follow once the examination of issues raised by these arrangements is completed.

CANBERRA
13 May 2004

Last Modified: Thursday, 13 May 2004