Australian Timeshare and Holiday Ownership Council
(ATHOC) Conference on Monday 12 September 2011.
Venue: Watermark Hotel, Surfers Paradise, Gold Coast, Queensland
Joanne Casburn, Assistant Commissioner Indirect Tax
Interpretative Assistance Phone: (07) 3213 5164
Laurie Robinson, Director Indirect Tax Interpretative
Assistance Phone: (07) 3213 5688
Questions and issues raised by ATHOC
members and the timeshare industry.
1. Recap on the history of the decision in ATO ID 2010/23
2. Why are annual maintenance fees/levies input taxed?
3. What status does an ATO ID have?
4. Timeshare letter
5. Penalties and interest
6. What has been published by the ATO that is relevant to the industry?
Recap on the history of the decision in ATO
- ATO ID 2001/385- GST and maintenance/operating levy imposed
by a timeshare resort management body
- ATO ID 2010/23 - GST and annual maintenance fees paid under a
time-sharing scheme, published on 5 February 2010
Why are annual maintenance fees/levies
– Interests in a timeshare are input taxed
– The annual fees/levies confer an interest to an
accommodation entitlement associated with the timeshare
– There is sufficient nexus between the supply of the
timeshare interest and the annual fees/levies
What status does an ATO ID have?
ATO Interpretative Decisions (ATO IDs) set out precedential ATO
views that tax officers must apply in resolving interpretative issues.
ATO IDs are not binding advice and are not public rulings.
Refer to PS LA 2001/8.
In consultation with ATHOC, after publishing
ATO ID 2010/23, there have been two options developed, moving
forward (Option A) and refund (Option B), which timeshare
operators have the choice of applying.
Discussion on Options A and B and the implications for the ATO
and the taxpayer.
Penalties and interest
Where an ATO ID on a GST and timeshare matter is reasonably
relied on in good faith by the taxpayer (for example, ATO ID
2010/23), protection from general interest charge (GIC) and/or
shortfall interest charge (SIC) is provided by subsection 361-5(1) of
However this level of protection for GIC charge is not provided for
GIC accruing more than 21 days after the Commissioner notifies the
taxpayer of the correct ATO position (refer subsection 361-5(2)).
ATO IDs also provide protection against shortfall penalties (s284-
224 of the TAA)
What has been published by the ATO that is
relevant to the industry?
Goods and Services Tax Industry Issues (Public ruling)
Property and Construction Industry Partnership
Supply of time share interest
– ATO ID 2010/18
– ATO ID 2010/19
– ATO ID 2010/20
– ATO ID 2010/23
The Tax Office encourages taxpayers and their
representatives to contact us if clarification is
required on any GST law issues.
E-mail to- GSTmail@ato.gov.au
Phone the Tax Office on 13 28 66.
•Questions and answers time