Qantas tax scam?

[The Rok]

A quick review of the material does not answer the question, over what period is the $34 Million been collected, given it represents $340 Million of fares where refunds were not given????

It says it was collected over the first 8 years after the introduction of GST!

 

[oz_mark]

I don't get it. If the GST has already been paid to the government, then who is exactly chasing after who for what amount of money?

Qantas wanted the ATO to give the money back.

 

[mulubinba]

If I buy a ticket to a show from ticketek it will include gst. If I fail to show up I don't think I can expect a refund and i wouldn't expect ticketek would have any grounds to withhold the gst from the ato. On the other hand if I bought a myer gift card for say $100 then I suspect myer would not pay gst to the ato until I actually spent the card on goods. What happens if I never use it? No gst gets paid - myer keeps the full $100?
Now what happens if I buy a non-cancellable qantas ticket - price includes gst - if I no-show I think it is similar to the first example. What if I cancel and convert the fare to a voucher and never use the voucher. Is the voucher similar to the myer gift card or is it itself a goods or service which attracts gst? Was qantas trying to argue that an unused plane ticket is equivalent to a gift voucher?

 

[MEL_Traveller]

Is the voucher similar to the myer gift card or is it itself a goods or service which attracts gst? Was qantas trying to argue that an unused plane ticket is equivalent to a gift voucher?

Qantas were trying to argue the 'all or nothing' approach - the 'all or nothing' in this case being the flight itself. If you don't take the flight then there has been no service supplied, therefore no GST is due. That sounds logical and the Federal Court agreed.

The high Court (with one dissent) court disagreed with the Federal court and set aside the earlier judgement. They said (paraphrased) when a passenger makes a booking, qantas is supplying a best-endeavours undertaking for travel, subject to operational ability (that is, qantas will do their best to carry you when they say they will provided there are no operational hiccups). Because they are 'supplying' this undertaking they are supplying a service, therefore GST attracts.