Haven’t posted for a long while but saw this and thought it’s an interesting read. https://www.afr.com/policy/tax-and-...d-case-creating-a-budget-hole-20201108-p56cjw The Australian Taxation Office is facing a budget black hole of more than $1.15 billion and the spectre of a class action after it lost one of the country’s most important and controversial tax cases on Friday. “.....unanimously overturned a decision made in the Administrative Appeals Tribunal in relation to GST assessments issued to an entity in the precious metals industry. It also had a costs order of $1 million.” “....With the case over it is expected to open the floodgates to damages claims by some industry operators that collapsed or suffered financially after being subjected to raids, garnishee notices, drawn-out litigation and a public smear campaign of the industry.”
Thanks for posting that. Do you get the feeling the Govt will be PO'ed with that ruling and loss of revenue and decide to hit the industry with GST on all bullion (9999 bars and coins) sold via retail?
It will be interesting to see how former directors will response that were forced out of business due to the ATO's aggressive and erroneous behaviour.
Hope for South Gippsland Bullion? Maybe we won't see them back in business but some compensation would be nice.
Pure speculation on my behalf, but since they seem to be emulating UK law it might mean VAT (GST) on silver, platinum and palladium. I'd wager no GST on gold bullion as it would again be a too big discrepancy compared to most other countries (a.k.a. drain on gold). What they could also do is determine coins on EU's investment gold coin list GST-free (irrespective of purity; e.g., sovereigns). https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:JOC_2018_412_R_0007&from=EN edit. For anyone interested, adding the link to relevant piece of UK legislation. https://www.gov.uk/guidance/investm...4Tbg_Li2QzcPPRN876tmhkyvejS8nXOndUzFrgN5QqpKA
They can stick the compensation up their ass. The artwork for the first round of the second series of dissent was done years ago just before they started the audit and we are seriously thinking of starting up again. Difference this time round is the wife and myself are working full time in another business so it would be a hobby business just doing SGB stuff nothing else. One thing I would say if we do make a comeback we gonna be nastier than ever with our rounds. As a side note, I see Perth Bullion is back and I know a few people got burned and others have reluctance dealing with them. What people must understand its not Perth Bullions fault for the outcomes delivered, you want someone to blame - look to the government, blame the tax office. What these people put you through you will never understand until they come for you - it really is fucking hell. Anyway onwards and upwards, merry xmas to all, have a good one. Ice.
Just a side note - our accountant recommended AuditShield tax audit insurance. We took it just in case, against such wanton abuse of power as @iceblue describes above. If anyone has experiences re. this insurance irl, would be great to hear more. https://www.accountancyinsurance.com.au/products-services/audit-shield/
