GOLD INDUSTRY – AUSTRALIA

No justice for SMEs when the tax office smells blood

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Original article by Robert Gottliebsen
The Weekend Australian – Page: 31 : 21-Dec-19

The Administrative Appeals Tribunal’s landmark ruling in favour of the Australian Taxation Office against gold refiner EBS has significant implications for small and medium enterprises. The case – which centred on the tax treatment of bullion and scrap gold under the GST regime – had gone on for about six years, and the appeals process is likely to take another several years. The majority of SMEs simply cannot afford the cost of such lengthy legal proceedings. The small business appeals tribunal may provide some relief for SMEs, but government action is needed to make it easier for SMEs to conduct business in Australia.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL, EBS

Tax office wins fight over GST on scrap gold

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Original article by Nick Evans
The Australian – Page: 23 : 5-Jul-19

The Australian Taxation Office has secured an important legal victory in its ongoing battle to withhold tax credits that were allegedly wrongfully claimed under a GST gold swindle. Deputy commissioner Jeremy Geale says the significance of its latest win in the Administrative Appeals Tribunal is that it was against a gold refiner, whereas the previous wins have been against gold dealers or scrap merchants. It is claimed that the swindle has cost federal Treasury over $1 billion.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL, AUSTRALIA. DEPT OF THE TREASURY

Tax office in stunning U-turn on gold fraud

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Original article by Robert Gottliebsen
The Australian – Page: 19 : 12-Jan-17

Under the Howard government’s tax reforms, Australian gold refiners were required to pay GST on gold that is not of investment grade, although investment-grade gold in bars did not attract GST. Refiners warned the Australian Taxation Office that the system was subject to widespread fraud, which is estimated to have cost taxpayers around $A600m. The ATO targeted gold refiners, believing that they were involved in the massive tax fraud, and its actions threatened the nation’s entire refining industry. The ATO subsequently backed down in late 2016 and agreed to measures first proposed by gold refiners some three years earlier. They will now be permitted to buy high-purity gold that is not marked as being of investment grade without attracting GST.

CORPORATES
AUSTRALIAN TAXATION OFFICE, FOCUS MINERALS LIMITED – ASX FML, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIA. OFFICE OF THE INSPECTOR-GENERAL OF TAXATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY