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A SMSF has a bare trust that is borrowing to buy a commerical building that charges GST. Does the SMSF or the Bare Trust register for GST ?
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Hi Robert
The bare trust is ignored for income tax and GST purposes as the SMSF is considered the owner of the property.
That is the SMSF is the entity that is GST registered (if required by turnover or if the Fund elects to GST register).
To support this also refer section 235.820(2) of ITAA 1997 that states:
"An act done in relation to an * instalment trust asset of an * instalment trust by the trustee of the trust is treated as if the act had been done by the investor (instead of by the trustee).
Example: A trustee disposes of the asset. Any capital gain or loss is made by the investor, not by the trustee."
Thanks
SMSF AAA