A draft determination has been issued on the question of whether a ‘farming business’ is carried on where there has been a cessation of farming activities as a consequence of a decision to sell the land. The answer could determine whether the sale of the land is GST-free.
In answering the question, the Commissioner has correctly pointed to the extension of the term “carrying on” to include cessation and termination.
Happily, it is possible to terminate the active conduct of a farming business and sell the land in the course of terminating the business so that GST-free status can be preserved – at least that’s the way the draft looks at it.
The draft states that “Whether a farming business continues to be carried on is a question of fact and degree depending on the circumstances of each particular case.”
I have a number of foibles! One of which is the use of the phrase a question of fact and degree … I wonder if it is right in this case?
Comments on the draft are able to be made until 9 September 2011.