INPUT TAX DEDUCTIBILITY AND NEUTRALITY

1. INPUT TAX DEDUCTIBILITY AND NEUTRALITY Professor Rebecca Millar Sydney Law School How different is the Australian GST really?

2. A New Tax System (Goods and Services Tax)Act 1999 s.11-15(1): You acquire a thing for a creditable purpose to the extent that you acquire it in *carrying on your *enterprise. • See also s.15-10(1) and s.129-50(1) Rompelman [T]he deduction system is meant to relieve the trader entirely of the burden of the VAT payable or paid in the course of all his economic activities.

3. HP Mercantile Pty Limited v FCT [2005] FCAFC 126 Deemed input taxed acquisition-supply time Taxed Postage, Copying, etc Taxed Debt Collection Services Taxed Due Diligence Services Input taxed Acquisition of Debts

4. FCT v Department of Transport (Victoria) [2010] FCAFC 84 Taxi Driver Provision of Taxi transport 50% each of price DOTV Disabled Person

5. Nexus between inputs and outputsSveda Public (>1 recipient) Free access (out-of-scope supply for no consideration) Taxable goods & services Taxpayer Construction of Baltic mythology path Building contractors

6. Nexus between inputs and outputs Sveda Public (>1 recipient) Free access (out-of-scope supply for no consideration) Taxable goods & services Taxpayer Construction of Baltic mythology path Building contractors

7. Nexus between inputs and outputs Sveda Public (>1 recipient) Free access (out-of-scope supply for no consideration) Taxable goods & services Taxpayer Construction of Baltic mythology path Building contractors

8. Nexus between inputs and outputs Rio Tinto Employees & contractors Customers in Australia/Overseas Input taxed residential premises Taxable/GST-free minerals Taxpayer Repairs, maintenance, cleaning, etc of residential premises Contractors

9. Nexus between inputs and outputs Rio Tinto Employees & contractors Customers in Australia/Overseas Input taxed residential premises Taxable/GST-free minerals Taxpayer Repairs, maintenance, cleaning, etc of residential premises Contractors

10. Nexus between inputs and outputsRio Tinto Employees & contractors Customers in Australia/Overseas Input taxed residential premises Taxable/GST-free minerals Taxpayer Repairs, maintenance, cleaning, etc of residential premises Contractors

11. PolskiTrawertyn 22 DecTwo ‘partners’ acquire (enter into an agreement to acquire?) a stone quarry ☞ Receive invoice issued in their names 27 April Partnership ‘founded’ ☞ Notary invoices for drawing up partnership agreement ☞ Stone quarry contributed as an in-kind contribution 5 June Partnership registered on the companies register How would Australian GST apply to these transactions?

12. Publications Rebecca Millar “Limitations on the right to credit input tax Rio Tinto Services Limited v Commissioner of Taxation [2015] FCAFC 117” (2016) 5 World Journal of VAT/GST Law 42-47: Rio Tinto, Svedahttp://ssrn.com/abstract=2772375 Rebecca Millar “Grappling with basic VAT concepts in the Australian GST: the meaning of ‘supply for consideration’” (2014) 3 World Journal of VAT/GST Law 1-31: TT Line, Department of Transport (Victoria) http://ssrn.com/abstract=2591231 Rebecca Millar “Taxable Amount: Fiscal Neutrality in Action” in Lang et al ECJ - Recent Developments in Value Added Tax: The Evolution of European VAT Jurisprudence and its Role in the EU Common VAT System (2014, Linde Verlag, Vienna), pp. 223-245: American Express Wholesale Currency Services Rebecca Millar “What’s VAT got to do with it?” (2012) 12 Australian GST Journal, 99-124: Rompelman, INZO, Ghent Coal, HP Mercantile