Are you paying too much GST on properties? |
Deloitte has obtained a number of large refunds for our property clients in relation to GST. In total, these are well in excess of $20 million in the last 18 months. That’s a massive amount of money saved, especially in these volatile times where cash is king.
Suffice it to say, our clients have been very impressed with this initiative. A number of CFOs have contacted us to express their delight with the unexpected cash injection into their business.
How was this achieved? We identified an opportunity in relation to a property developer client a few years ago. We challenged the ATO’s view on the GST treatment that was being followed and this was ultimately accepted. As a result, other property developers engaged us to see if we could help them with this issue. One opportunity led to another and the result was over $20 million for the property industry to date.
These refunds have been centred around residential land developments and ensuring that the margin scheme has been correctly calculated in accordance with the ATO’s views.
It has been our experience that in many instances, mistakes have been made and too much GST has been paid.
Should you be involved in this area we would strongly suggest that you have your current calculations reviewed by a Deloitte Indirect Tax specialist.
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