Transactions Involving NominationsNominee transactions ordinarily involve a purchaser nominating another person (a nominee) to receive goods and services and/or settle the transaction. The new rules are intended to provide greater certainty for transactions involving nominees by adopting an “economic substance” approach. These rules are not intended to apply to transactions that involve other structures, such as assignments, novations, or agency arrangements. Key FeaturesNew section 60B clarifies the GST treatment of transactions involving nominations—when a contractual purchaser nominates another person (a nominee) to receive the goods or services from the contractual vendor. In these circumstances, the GST treatment will depend on which party provides payment for the supply of goods or services. In respect of transactions involving land, however, the supply will always be treated as being made by the supplier to the nominee. Application DateThe new rules will apply to supplies made on or after 1 April 2011. |
