10 Nov 2005
THE COMMISSIONER OF INLAND REVENUE V LUNDY FAMILY TRUST AND ANOR CA CA115/04
- Citation
- openlaw-f54c7717_9008_40bb_a438_2492c6cabd81.pdf
- Court
- Court of Appeal
s 21(1) adjustments are to be based on the acquisition cost (or lower market value) of the property including land and buildings; depreciation is a principled method to apportion that acquisition cost across GST periods; periodic adjustments are permissible; s 21(5) allows recovery on return to taxable use regardless of whether the earlier adjustment was periodic or one-off; ongoing service costs are conceptually separate and require apportionment (Court suggested a 75/25 taxable:exempt split as a starting point and sought further submissions).