Public Message from South Gippsland Bullion.

Are you saying the ATO quoted something you said here to you?

 

Uncertainty is the key word here.
We asked - does a logo constitute a picture and therefore change the characteristic of the bullion? The answer was -if the bullion is then collected for the logo then yes GST would be applicable.
You guys must understand why we are closing down yeah?

Once the smoke clears and we have solid legislation we may return, but until then its just a head turtle.

 

On more than one occasion, exact word for word with dates included.

 

with print screen pages ? wow

 

What's said for the purpose of attracting bullion customers away from other bullion dealers doesn't change the fact that they are bullion customers. At the end of the day it's spot plus margin with the margin varying for many valid reasons. Christ, people try to pump and dump frickin $10 notes. Are these going to be subject to GST as well?

 

Do stamps attract GST?

 

This is such an important issue facing all members on here, I think it needs it needs to be split into it's own thread like "IMPORTANT: Potential ATO changes on Bullion GST"
As many people might not have bother to read about SGB.

 

Who is going to be left/able to afford to pay any tax once all the large businesses have been closed due to being unable to compete (wouldnt want to go against the vibe of a fair trade agreement, would we?) and the majority of small businesses sunk with increasing government red tape and business/utilities costs ?

 

So what happens if you have bought physical coins/bars in an allocated program and you want to sell them back to the holder?
And that's a two part question:
1) Pertaining to physical metal already owned which didn't attract GST
and
2) New metal sold by allocated companies. i.e. Would you pay 10% GST to buy the allocated metal (which as an individual you can't claim back), and then you lose that 10% selling back to them the dealer who will surely only buy at spot, and because the individual is not registered for GST they don't have the charge it. If so, surely the entire allocated market becomes useless for the individual? as who's going to buy allocated when they know it will instantly lose 10% in value?

 

We're all in this sinking boat together.

 

Dont worry, this is much bigger than SGB. While we maybe small fry in the industry, our friends, acquaintance, business associates and suppliers have been informed all the way up to the Perth mint.
We cant afford the fight but we damn sure help where we can with the industry.

 

This also means that private sales via ebay etc will explode, as unless you earn a certain amount as a business, you are not obligated to register for GST.
And no one is liable if you sell your metal to an overseas dealer.

 

My thought is that allocated schemes should be perfectly ok because you are not buying something that has "the character of a manufactured article". You are investing in something that has the character of the metal, not the character of something made from metal (this wording is from the GST ruling on precious metals).

 

It was my understanding that you could buy allocated in any form including coins, but unallocated had no character?

 

Sorry guys, I dont have the answers to many of your questions simply because they are questions I have also.
Let the big boys sort this out, all hangs on what they do.
If they want to pay our legal bill and any arising costs from it then we will fight the ruling.
As I mentioned in the op this has the potential to effect the industry let it take its course.
I would expect in the near future GP makes some type of official statement, until then we stick together as one, all differences aside and help keep this industry alive, because as it stands theres lots to be lost.

 

If the allocated dealer is audited and cops a big fine, they may get in financial trouble and then how safe is your allocated.[/quote]
I was thinking of it from the perspective of a GST liability rather than safety of the actual silver.

 

I'm sure we are all very thankful that you raised this publicly. I can imagine some people would be too intimidated to speak up after such an experience. Thanks again for keeping us informed!

 

7 months of torture, am so tired and worn out from this Iam glad we are calling it quits for a while.
The least I can do is keep you all informed. The first thing we done was informed the large players in the industry.
Take a look at your 'world leader' round, it says on the sides 'screw the tax payer'.

 

If the allocated dealer is audited and cops a big fine, they may get in financial trouble and then how safe is your allocated.[/quote]

Allocated is safe. No problems there, once a sale is complete your order is put in a box and kept until delivery is called for. The stock is already removed from stock to customer.
Un allocated I dont know about.