Posted
8/10/2008
There is a restriction on secondhand goods claims where a taxpayer purchases goods from an unregistered associated person. No GST input tax may be claimed if the associated person did not pay GST when buying the goods, for example, if the associated person bought the goods before 1 October 1986 or from another unregistered person. This means an entity (eg company, partnership, soletrader, trust) can't claim GST on assets introduced by the shareholders/owners unless they paid GST when buying the asset.
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