Explanatory memoranda series#
The term enterprise is defined widely to include an activity or series of activities done in the form of a business etc.45 The general approach in relation to a company structure suggests that, although natural persons carry on the activity, it is the incorporated body that is undertaking the business or the ‘you’ that is carrying on the enterprise. In order to have a taxable supply, it is also necessary that the supply be made in the course or furtherance of an enterprise that you carry on.44 Again the issue arises as to what is meant by the term ‘you’ in relation to carrying on the enterprise. This has the effect of treating the transaction as two separate supplies – one from the principal to the agent and a second from the agent to the third party.42 This is not the usual case, however, and the fact that it apparently requires an agreement in writing43 would suggest that it is not generally applicable in the insolvency situation. This is possible because of Subdivision 153B. It is possible for the principal and agent to agree that the general rule above will not apply. Your agent is not liable for the GST and is not entitled to the input tax credits. You are entitled to the input tax credits on creditable acquisitions and importations you make through your agent. You are liable for the GST on taxable supplies and importations made through your agent. That is, a thing done by your agent as agent for you is a thing done by you. Explanatory Memorandum to A New Tax System ( Goods and Services Tax) Bill 1999 at para 6.277.If you make supplies through agents the general law of agency applies.
0 kommentar(er)
