19 Dec 2008
GLENHARROW HOLDINGS LTD V COMMISSIONER OF INLAND REVENUE SC 59/2007
- Citation
- GLENHARROW HOLDINGS LTD V COMMISSIONER OF INLAND REVENUE SC 59/2007
- Court
- Supreme Court
The Supreme Court held that s 76 could be invoked by the Commissioner where, objectively, an arrangement's structure and effect defeat the intent and application of the GST Act; here vendor finance to a near‑capitalless purchaser and the artificial character of the purported full payment produced an inflated input tax refund inconsistent with economic reality, entitling the Commissioner to treat the arrangement as void for GST purposes and to reconstruct refunds to reflect actual economic payments; the appeal was dismissed.