Proceedings brought under s 14ZZ of the Taxation Administration Act 1953 (Cth) which were related appeals by the applicants challenging goods and services tax (GST) assessments. The applicants were the owners and operators of casinos in Melbourne and Perth and make “gambling supplies”, as the expression is defined in s 126‑35(1)(b) of A New Tax System (Goods and Services Tax) Act 1999 (Cth) (GST Act). The GST on those “gambling supplies” was determined in accordance with the special rules contained in Div 126 of Pt 4-4, Ch 4 of the GST Act, under which GST is payable on the “global GST amount” for each of the applicants for a tax period: s 126-10 of the GST Act. These proceedings concerned the GST treatment of commissions and rebates in junket program agreements between the applicants and junket tour operators. At issue was whether the commissions and rebates were to be taken into account in calculating the applicants’ respective global GST amounts (as contended by the applicants), or whether, properly characterised, the commissions and rebates are the consideration for the supply by junket tour operators to the applicants of the services of marketing, promoting and arranging junkets to the casinos, to which the basic rules for the GST contained in Ch 2 of the GST Act apply (as contended by the Commissioner).
Mark Robertson QC (with B Jones) appeared for the Applicants, instructed by MinterEllison.
The judgment is published here.
Media coverage from Lawyerly of the judgment is published here.