ARTICLE · 03 AUGUST 2009

Liquidators´ Liability For GST – Draft Legislation Released

Norton Rose Fulbright Australia

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Exposure draft legislation has been released which proposes amendments to the GST legislation to make it clear that liquidators and other representatives of incapacitated entities are liable for GST on transactions within the scope of their appointment.

AustraliaTax

Peter Norman

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Exposure draft legislation has been released which proposes amendments to the GST legislation to make it clear that liquidators and other representatives of incapacitated entities are liable for GST on transactions within the scope of their appointment.

Date of effect

It is proposed that the main operative provisions of the legislation have effect retrospectively from the commencement of the GST Act on 1 July 2000.

Background

The release of the draft legislation is a direct response to the December 2008 Federal Court decision in Deputy Commissioner of Taxation v PM Developments Ltd [2008] FCA 1886 ( click here to see our legal update concerning this case). In that case Logan J found that a liquidator has no personal liability for GST in circumstances where the assets of the company have not been vested in the liquidator.

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