Court Decisions
Look through not permitted by GSTA
05.12.2008
The chief operating company of a GST group was a life insurance company (NMLA) which invested in units of unit trusts associated with (but not part of) the group and whose investments overseas were accepted as being GST-free. The issue for decision was the extent input tax credits were allowable in respect of general management expenses incurred by NMLA. Lindgren J held that NMLA made a financial supply because it acquired the units for consideration and it was not possible to adopt a “look through” approach and treat NMLA as having made the overseas investments (AXA Asia Pacific Holdings Ltd v FCT [2008] FCA 1834).
