You may recall that we issued a bulletin on July 27th, 2006 in relation to the tax office ruling GSTR2005/6 and its effect on DDU / DDP transactions. (Please click here to view http://www.afif.asn.au/pdf/news/Jul06_GST0506.htm)

As advised in that bulletin, the industry bodies AFIF, CBFCA and CAPEC commissioned PricewaterhouseCoopers (PWC) to prepare a submission to the assistant Treasurer, in which we addressed the key implications of the ruling with a view to seeking legislative and administrative solutions for our members.

Following many detailed meetings, the submission was prepared and lodged with Treasury in September. The submission also included proposals in relation to how export transport related charges were dealt with.

On October 4th, we were invited to meet with Treasury and the ATO in Canberra to work through the detail of the submission. Following the meeting, Treasury advised that they would consider the proposals and respond to industry in regard to any law changes that would be considered for recommedndation to Government. We received a good hearing and we further believe that the ATO and Treasury have a much greater understanding of the international transport industry and how this ruling could have serious impact on the industry.

Whilst we are bound by signed confidentiality documents as to the discussions that took place in that meeting of October 4th, we have been advised that we can release the PWC submission that was lodged with Treasury. However it should be dealt with in a prudent manner and is not for general publication. Therefore, we are attaching a copy of this document and sending it only to the CEO or senior contact person in each of our member companies and respectfully request that any distribution be carefully managed.

Click here to view link

We will send you more detailed information as and when we hear back from Treasury and / or the ATO but we have been asked to be patient as this could take some time and outcomes and subsequent decisions are unlikely this year!  In the meantime we would be grateful for advice on any audit activity you may have been subject to, in relation to the ATO GST Ruling GSTR 2005/6.