Shaw v Director of Housing and Tas (No 2)

[2001] TASSC 2

Supreme Court of Tasmania

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Interrogate

Catchwords

1. Taxes and Duties
2. › Goods and Services Tax
3. › Taxable supply
4. › Meaning of 'supply'
5. › Whether payment of judgment sum results in supply by judgment creditor
6. › Whether release of obligation to pay judgment debt is a 'supply'
7. › A New Tax System (Goods and Services Tax) Act 1999 (Cth), ss 7-1, 9-5, 9-10, 9-15
1. Taxes and Duties
2. › Goods and Services Tax
3. › Taxable supply
4. › Requirement that supply be 'made'
5. › Whether legislative intention requires voluntary act by supplier
6. › Distinction between voluntary supply and extinguishment by operation of law
7. › A New Tax System (Goods and Services Tax) Act 1999 (Cth), ss 9-5, 9-10

Quick Take

Payment of a judgment sum by a judgment debtor does not result in the judgment creditor making a 'supply' within the meaning of the GST Act, s 9-10, because the extinguishment of the judgment debt occurs by the act of payment itself without any voluntary act by the judgment creditor. The word 'make' in s 9-5 requires a voluntary supply. Accordingly, judgment creditors do not incur GST liability on receipt of judgment sums.