AFR: ATO loses landmark gold case creating a budget hole

Discussion in 'General Precious Metals Discussion' started by koolooka, Nov 8, 2020.

  1. koolooka

    koolooka Member Silver Stacker

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    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.”
     
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  2. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Amazing outcome
     
  3. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    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?
     
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  4. Bit Baron

    Bit Baron Member

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    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.
     
  5. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Hope for South Gippsland Bullion?

    Maybe we won't see them back in business but some compensation would be nice.
     
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  6. bubblebobble2

    bubblebobble2 Well-Known Member Silver Stacker

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    ^^^
    Perth Bullion too?!
     
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  7. jultorsk

    jultorsk Well-Known Member Silver Stacker

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    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
     
    Last edited: Nov 10, 2020
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