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Stacey Grose

The application of the going concern concession is understandably attractive to vendors and purchasers as it removes GST from a transaction, therefore reducing the amount of stamp duty to be paid. However, the recent Federal Court decision in MBI Properties Pty Ltd v Commissioner of Taxation [2013] FCA 56 illustrates that the application of this concession is not without risk for either the vendor or the purchaser. If you are unsure whether the going concern concession applies to your transaction please contact our Business Law Team for further information.