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Australian breeders are heading for another confrontation with the Federal Government over taxation.

Breeders have received notification from the Australian Taxation Office advising that vendors of exported horses will have to pay GST if the horse has been broken in prior to leaving Australia.

Thorougbbred Breeders Australia claims the ruling contradicts advice to the Australian Racing Board and previous arrangements with the industry.

TBA contends that most Asian countries will not accept horses until they have matured and have been broken as their racing industries do not have the facilities or expertise to undertake breaking in.

A TBA release also states that the ATO previously acknowledged that it is extremely dangerous to fly unbroken yearlings and older horses.

The ATO is also seeking documents from the overseas purchasers of horses that have been exported up to 9 months ago. If this documentation is not provided the vendor will be required to pay GST.

TBA says these procedures contradict agreements with the ATO prior to the Australian Easter Sale in April.

TBA directors and representatives of Aushorse are seeking urgent talks with the Treasurer and the Minister of Trade to resolve the matter.

The TAB and Aushorse are recommending that genuine exports which can be independently verified in Australia and in the importing country and which leave Australia within 365 days of sale should be treated as GST free. 

This would apply to all horses sold prior to the 2002 Sydney Easter Yearling Sale. 

It is recommended, that after this date, the current procedure where no sale is GST free but where overseas buyers can have the GST refunded is continued. 

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