GH1 Pty Ltd, in Liquidation and Commissioner of Taxation (Taxation)

GH1 Pty Ltd, in Liquidation, sought to recover Goods and Services Tax (GST) input tax credits (ITCs) claimed for acquisitions it contended were creditable. The Commissioner of Taxation disallowed these claims, leading to the dispute being heard by the Administrative Appeals Tribunal.

The primary legal issue before the Tribunal was whether GH1 Pty Ltd was entitled to claim ITCs for acquisitions it alleged were creditable. This required determining whether the supplies made to GH1 Pty Ltd were taxable supplies, as defined by the GST Act, and whether GH1 Pty Ltd held valid tax invoices for these acquisitions. The Tribunal also considered the evidentiary weight of documents presented by GH1 Pty Ltd, particularly in light of the Commissioner's objections.

The Tribunal found that the existence of tax invoices alone was insufficient to establish that taxable supplies had been made. GH1 Pty Ltd relied on an additional bundle of documents (Exhibit 2) and purported tax invoices to support its claims. However, the Tribunal noted that no witness evidence was led to explain the underlying transactions or the authenticity of these documents. Applying the principles from *Jones v Dunkel*, the Tribunal concluded that GH1 Pty Ltd had failed to discharge its evidentiary burden. The Tribunal reasoned that book entries, such as those in Exhibit 2, do not prove the underlying taxable supply in the absence of evidence of the supply itself. Furthermore, the Tribunal observed that the development work to which the disputed invoices related had been completed significantly earlier than the dates of the invoices, and payments for these invoices were credited to an outstanding loan account rather than being made.

The Tribunal affirmed the Commissioner's objection decision, disallowing GH1 Pty Ltd's claim for ITCs in full.