Date posted: 02/02/2024

Submission on When is a subdivision project a taxable activity for GST purposes?

CA ANZ’s feedback on the draft question we’ve been asked (QWBA) PUB 00427

The draft QWBA examines when:

  • a subdivision project is a ‘taxable activity’ for GST purposes because it is carried on ‘continuously or regularly', and 
  • the sale of subdivided land is a supply made in the course or furtherance of a taxable activity. 

According to CA ANZ, the draft QWBA is well written and contains examples to illustrate the concepts, albeit such examples are at different ends of the spectrum as opposed to some facts that are less certain in terms of conclusion. The draft QWBA correctly emphasises each case will depend on its specific facts, nevertheless it will be an important resource in helping taxpayers establish the GST consequences of subdividing land.

CA ANZ makes some suggestions to improve clarity and enhance value.

 

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