ATO & Tax Lawyers › GST & BAS Disputes
GST & BAS Dispute Lawyers — Challenge the Assessment. Recover the Credit.
ATO GST audits frequently result in significant amended assessments — disallowing input tax credits, reclassifying transactions as taxable supplies, and raising unreported GST liabilities with penalties and general interest charge. A tax lawyer challenges ATO GST decisions through the Part IVC objection and appeal process, manages GST audits from the first information request, and recovers disallowed input tax credits.
⚠ GST objections must generally be lodged within 60 days of the amended assessment. The ATO can amend GST assessments up to 4 years after the relevant tax period. Missing BAS lodgement deadlines triggers failure-to-lodge penalties and audit risk. Get advice now.
GST & BAS Matters We Handle
From BAS lodgement issues to contested GST assessments.
Input Tax Credit (ITC) Disputes
ATO GST audits frequently target input tax credit (ITC) claims — disallowing credits on the grounds that the acquisition was not for a creditable purpose, the tax invoice was defective, or the supplier was not registered for GST. A lawyer challenges ITC disallowances through the objection process, prepares alternative evidence where invoices are defective, and recovers credits that should have been allowed.
Taxable Supply Classification Disputes
Whether a supply is taxable (subject to GST), GST-free (including food, medical services, exports), or input-taxed (financial supplies, residential rent) has a significant impact on both GST liability and ITC entitlements. ATO disputes about supply classification — particularly in the property, healthcare, and financial services sectors — can result in substantial amended assessments. A lawyer prepares detailed classification submissions and challenges ATO reclassifications.
GST Audit Defence
A lawyer manages GST audits from the first ATO information request — controlling the scope of information provided, preparing compliant responses to s353-10 information notices, asserting legal professional privilege where appropriate, and negotiating with the ATO case officer to minimise the amended assessment before it is issued.
BAS Lodgement & Outstanding Returns
Where a business has failed to lodge BAS returns — or has lodged inaccurate returns — the ATO can issue default assessments based on the ATO's own estimate of liability. A lawyer manages the lodgement of outstanding BAS returns, challenges default assessments, and negotiates with the ATO to replace estimated assessments with assessed amounts based on actual trading figures.
Property Transaction GST Disputes
GST on property transactions is a common area of dispute — particularly the application of the margin scheme, GST on new residential premises, the going concern exemption on business sales, and GST on commercial property. A lawyer advises on the GST treatment of property transactions before they settle and challenges ATO assessments arising from disputed property GST positions.
GST Fraud Allegations
ATO allegations of GST fraud — including false ITC claims, phoenix activity, and involvement in GST fraud schemes — carry severe penalties (up to 75% of the shortfall plus prosecution) and unlimited amendment periods. A lawyer responds urgently to GST fraud allegations, manages voluntary disclosure to minimise penalties, and defends criminal and civil penalty proceedings.
The Legal Framework
GST law in Australia — the A New Tax System (Goods and Services Tax) Act 1999.
The GST Act — taxable, GST-free, and input-taxed supplies
The GST Act 1999 divides supplies into three categories: taxable supplies (subject to GST at 10%); GST-free supplies (no GST, but ITC entitlements on acquisitions for making those supplies are preserved); and input-taxed supplies (no GST, and ITC entitlements on acquisitions for making those supplies are not available). Common GST-free supplies include basic food, medical and health services, educational services, and exports. Common input-taxed supplies include financial supplies (loans, insurance) and residential rent. Classification disputes arise where the ATO disagrees with the taxpayer's characterisation of a supply.
Input tax credits — Division 11 GST Act
Under Division 11 of the GST Act, a GST-registered entity is entitled to an ITC for the GST component of acquisitions made for a creditable purpose — broadly, for use in making taxable or GST-free supplies. The ITC claim requires a valid tax invoice (for acquisitions over $82.50 including GST). Common ITC disputes include: claims on acquisitions for private use; claims on mixed-use acquisitions (only the business-use proportion is creditable); and claims where the supplier was not registered for GST. A lawyer identifies all available ITC claims and prepares evidence to support recovery.
The margin scheme — Division 75 GST Act
The margin scheme under Division 75 of the GST Act allows a vendor of real property to calculate GST on the margin (the difference between the sale price and the acquisition price) rather than on the full sale price — significantly reducing the GST payable. The margin scheme is only available if: the property was originally acquired without a full ITC entitlement; the vendor has a written agreement with the purchaser to apply the margin scheme before or at settlement; and the acquisition was not from a party who was using the margin scheme. Failure to correctly apply the margin scheme can result in significant GST assessments on the full sale price.
Going concern exemption — s38-325 GST Act
Under s38-325 of the GST Act, the sale of a business as a going concern is GST-free where: the supply is of a going concern; the parties agree in writing that the supply is of a going concern; and both parties are registered for GST. If the going concern exemption applies, no GST is payable on the sale price — making it a significant planning opportunity for business sales. However, the ATO scrutinises going concern claims closely — particularly where only part of a business is sold or where the business is not operating at the time of sale. A lawyer advises on whether the exemption is available and prepares the necessary documentation.
GST groups and joint ventures
Related corporate groups can form a GST group — which treats the entire group as a single entity for GST purposes, eliminating GST on intra-group supplies and simplifying BAS lodgement. Joint ventures can also elect to be treated as GST joint ventures, with the operator lodging a single BAS for the venture's activities. Errors in GST group or joint venture structure — including failure to meet the eligibility requirements or improper transfers of assets between group members — can result in significant GST assessments. A lawyer advises on GST group formation and compliance, and challenges ATO assessments arising from group or joint venture disputes.
BAS agent obligations and liability
BAS agents registered with the Tax Practitioners Board (TPB) have professional obligations in relation to the accuracy of BAS lodgements they prepare. Where a BAS agent lodges an inaccurate BAS — whether due to error or fraud — the taxpayer remains primarily liable for the GST owing. However, a taxpayer who relies on a BAS agent's advice in good faith may have grounds to seek penalty remission and, in some cases, to pursue the BAS agent for compensation. A lawyer advises on the allocation of liability between taxpayer and BAS agent and manages any resulting disputes.
How It Works
One request. Free GST dispute advice.
Tell us the nature of your GST dispute — audit, ITC disallowance, amended assessment, BAS issues — and any deadlines. A tax lawyer will contact you promptly.
Submit Your RequestDescribe the GST dispute
Tell us the type of GST issue (ITC disallowance, supply classification, property transaction, BAS lodgement, audit), the amount in dispute, and any deadlines that apply.
Matched to a GST dispute lawyer
Your request is matched to a tax lawyer experienced in ATO GST disputes — who understands the GST Act, ITC rules, property GST, and the objection and appeal process.
Free consultation
A tax lawyer contacts you for a free consultation — reviewing the GST dispute, assessing the merits of a challenge, and providing a clear strategy and cost estimate for resolution.