Businesses claiming large GST input-tax credits on the sale of second-hand goods are being investigated by the Tax Office.
Tax Commissioner Michael Carmody says these arrangements appear to be designed to exploit the second-hand goods provisions of the GST law to obtain large input-tax credits even though GST has not been paid on the goods.
More details on the issue are contained in a
Taxpayer Alert issued this week. Further advice will follow once an examination of the issues raised is completed.