Recorded Webinar: GST Supply of a Going Concern - A Case Study Intensive

The sale of a going concern gives rise to a GST exemption which can deliver major transfer duty savings and cash flow benefits to the purchaser, making it a particularly attractive proposition where real property is involved. However, the simplicity of the legislative provisions can mask the complexities in practice. This session analyses Subdivision 38-J of the GST Act through the following case studies:

• Sale of a business name, client list and P E - is that enough to constitute the supply of a “going concern”?

• Sale of an office complex - can there be a going concern if the premises are not fully or are only partly tenanted?

• GSTR 2002/5 re: multiple vendors and/or multiple purchasers:

  • sale of business and real property by a single vendor, where the purchaser wants to acquire the real property in one entity and the business assets in a separate entity (“one to two”) - can the going concern exemption be used?

  • sale of business by two vendors, where the first vendor owns the business assets while the second vendor owns the real property, to a single purchaser (“two to one”) - structuring to satisfy the ATO’s requirements

  • two vendors and two purchasers (“two to two”) - can the supply be done on a GST-free basis?

• Sale of office premises where vendor becomes purchaser’s tenant