Lance and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered the appeal of Mr Lance against a decision by the Commissioner of Taxation to affirm an assessment for Goods and Services Tax (GST) on the sale of a property known as Sutton Farm. Mr Lance contended that the sale of Sutton Farm was not a taxable supply because it was not made in the course or furtherance of an enterprise.

The primary legal issue before the Tribunal was whether the sale of Sutton Farm constituted a taxable supply under section 9-5 of the *A New Tax System (Goods and Services Tax) Act 1999* (Cth). This required the Tribunal to determine if the supply was made for consideration, in the course or furtherance of an enterprise carried on by Mr Lance, and if it was not an input taxed supply. Mr Lance conceded that the property was not residential premises, thus not an input taxed supply.

The Tribunal found that Mr Lance was not a reliable witness and rejected his evidence regarding his intentions for Sutton Farm, particularly his claims that it was to be subdivided solely for family living arrangements. The Tribunal relied on documentary evidence, including media reports and correspondence, which indicated Mr Lance had contemplated the commercialisation of Sutton Farm. While acknowledging Mr Lance intended to reside in the heritage homestead, the Tribunal found he also intended to subdivide and sell lots to fund refurbishment and repay loans. The Tribunal concluded that the sale of Sutton Farm was made in the course or furtherance of an enterprise, satisfying all elements of section 9-5 of the GST Act.

Consequently, the Tribunal affirmed the Commissioner's objection decision, finding that Mr Lance had failed to discharge the burden of proof that the GST assessment was excessive. The supply of Sutton Farm was therefore determined to be a taxable supply, and Mr Lance was liable to pay GST.