Australia Tax Agency Issues GST Ruling on Creditable Purpose in Business Transaction Accounts

The Australian Taxation Office Sept. 25 issued GST Ruling No. GSTR 2020/1, determining when acquisitions are made with a credible purpose in relation to business transaction accounts provided by deposit-taking institutions. The agency explained: 1) that an objective assessment must be used to determine the relevant connection of the acquisition to the making of input taxed supplies; 2) that a factual inquiry must be made to determine the credible purpose of the acquisition; and 3) the treatment of transaction accounts that do and don’t involve taxable supplies of interchange services. The ruling comes into effect Oct. 1. [Australia, Australian Taxation ...