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GST Fiasco


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 1. GST Fiasco

20/06/2002 

 

Australian breeders who are registered for GST recently received a flyer from the Australian Taxation Office in their mail entitled GST and Horse Exports and probably almost keeled over at some of the statements in the flyer. The requirements set out in the flyer are completely contrary to the procedures that have been agreed to between the industry and the ATO. Many of the requirements have been made retrospectively and breeders will have no chance of meeting them. In addition the procedures that were only agreed to in March 2002 have already been altered and the procedure for dealing with GST pre 25th March 2002 are entirely different to the procedures post 25th March.

 

One of the most amazing statements that is made is that horses that have been broken in prior to export are liable for GST . This statement is made although there is a draft ruling and a letter to the Australian Racing Board that breaking in is necessary as a pre export function prior to export to most Asian countries. As everyone knows most Asian countries will not take a horse until it has matured and is broken in.

 

The TBA and Aushorse have written to the ATO complaining in the strongest terms about the statements in the flyer, the retrospective nature of the requirements and the mishandling of the issue of GST and horse exports.

 

In addition the two associations will be seeking to meet urgently with the Treasurer and the Minister for Trade in Canberra in order to resolve this issue. It is totally frustrating for breeders and agents and can very easily be resolved by common sense. Any progress on the issue will be placed immediately on this website

 

 

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