1) Explain the GST consequences arising from the sale of the business. (2) What steps could be taken by the parties to reduce the GST consequences? In sec 38-325 you need to supply everything necessary to carry on a business, in first question you have to explain it's a GST FREE supply please mention all the condition of that section and how it has meet those criteria there are 5 conditions not just two, and HOW GST consequences can be different in question 2
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Mary and Tony have owned a bookshop in Ryde for many years and their business has been very
successful. In January 2020, they were approached by a major competitor to buy the business. Mary and
Tony carry on the bookshop business as partners and also own adjacent premises that are used mainly
as a warehouse for their trading stock. The potential purchaser is only willing to buy the bookshop, and
not the adjacent premises because it already has adequate storage space.
Mary and Tony are quite excited about the offer as this will allow them to have a bit of a break after
working long hours running the business. They are unsure whether there will be any GST consequences
from selling the business.
(1) Explain the GST consequences arising from the sale of the business.
(2) What steps could be taken by the parties to reduce the GST consequences?
In sec 38-325 you need to supply everything necessary to carry on a business, in first question you have to explain it's a GST FREE supply please mention all the condition of that section and how it has meet those criteria there are 5 conditions not just two, and HOW GST consequences can be different in question 2
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