Commissioner of Taxation v Reliance Carpet Co Pty Limited

Taxes and duties – Goods and services tax - Taxable supply - A New Tax System (Goods and Services Tax) Act 1999 (Cth) ("the Act"), s 9-10 - Contract for sale of land - Whether there is a taxable supply when a deposit held as security for the performance of a purchaser's obligations is forfeited for failure by the purchaser to perform its obligations.

Vendor and purchaser – Deposit - Characteristics of deposit - Whether payment of deposit was "in connection with a supply" by vendor taxpayer for the purpose of s 9-15(1) of the Act - Whether forfeited deposit treated as consideration for a supply under s 99-5 of the Act.

Words and phrases – "consideration for a supply", "deposit", "grant, assignment or surrender of real property", "in connection with a supply", "real property", "supply", "taxable supply".

A New Tax System (Goods and Services Tax) Act 1999 (Cth) – ss 9-5, 9-10, 9-15, 99-1, 99-5, 99-10.

Property Law Act 1958 (Vic) – s 49(2).

Sale of Land Act 1962 (Vic) – s 26(1)(a).

Statute of Frauds 1677 – s 17.