EFTA00263534

We formed our view of the facts by relying on this information: 
it Activity statements lodged for the tax periods 1 January 2011 — 31 March 2012 "Jr' 
Our decision: 
Issue 
Are you entitled to be registered for GST? 
NO. 
Issue 2 
CLAir-,\NrJC.., Et-3-7F)e)t-k
r*--kEl`n CocSr 
Are you entitled to the GST credits claimed on Business Activity Statement/s lodged for the tax 
period/s 1 January 2011 — 31 March 2012 
NO. 
Why we have made this decision: 
Issue 
Section 25 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides that 
the Commissioner must cancel your GST registration if he is satisfied that you are not carrying on 
an enterprise. 
Section 9-20 of the GST Act provides that an enterprise is an activity, or a series of activities, done: 
(a) in the form of a business; or 
(b) in the form of an adventure or concern in the nature of trade; or 
(c) on a regular or continuous basis, In the form of a lease, licence or other grant of an 
interest in property. 
-74 However, an enterprise does not include an activity, or series of activities, done as a private, 
recreational pursuit or hobby. 
In conjunction with section 9-20 of the GST act amongst some of the indicators that tell us a 
business enterprise being conducted are an intention of making a profit and a reasonable prospect 
• of profitability, existence of a business plan, keeping of detailed business records, commercial 
sales of product &for skills, exercise of knowledge of skill (Taxation Ruling TR 97/11). 
You have not supplied any of the requested information, such as a business plan, business 
registration, details of your client base or advertising intentions that demonstrates that you are, in 
fact, running an enterprise. 
Furthermore, you have not shown a profit since you first commenced this business nor have you 
provided any evidence showing any expectation of profit from this business. 
Therefore your GST registration will be cancelled effective 31 December 2010. 
IC As our decision is that your activity does not constitute an enterprise, you are not required to be 
registered for GST or report GST on your sales. 
Subsection 105.65f1) of Schedule I to the Taxation Administration Act 1953 (TAA) provides that 
where goods and services tax (GST) is incorrectly included in the price of a non taxable supply, the 
ATO is not obliged to refund or credit the overpaid amount to the supplier when one of the 
following conditions are met: 
Page 4 of 6 
EFTA00263574

Your right to object 
You may object to: 
ori the assessment of the revised amounts 
— a decision to cancel your GST registration. 
Time limits of 60 days or four years apply when lodging an objection. 
If you decide to object to the assessment of the GST net amount, you must do so within the later 
of: 
a four years after the end of the tax period to which the decision relates; or 
a 60 days of service of the notice of penalty assessment. 
How to lodge your objection 
Your objection must: 
ea be in writing using the appropriate forms: 
o Taxpayers lodging their own objections — NAT 13471 
o Tax Professionals and any representative of the taxpayer - NAT 13044 
▪ be signed and dated 
is state fully and in detail the grounds you are relying on, and 
a be sent via: 
o the tax agent or business portals 
o fax to 1300 139 031, or 
o mail to: 
Australian Taxation Office 
PO Box 3524 
Albury NSW 2640 
Objection forms and information about how to lodge an objection, including advice on time limits, 
agent declarations and documents to send in with your objection form, are available from our 
website at www.ato.gov.au by searching for 'how to lodge an objection' or by phoning 13 28 66 
between 8.00am and 6.00pm, Monday to Friday. 
Record Keeping 
You need to keep your business records for at least five years after completing the transactions 
they relate to. This includes all records examined on this occasion. Please note that completion of 
this audit does not prevent us from initiating further action if warranted. 
For more information 
If you have any questions, please phone 13 28 69 between 8.00am and 5.00pm, Monday to 
Friday, and ask for Roy Pullen on extension 10601. 
Thank you again for your time and cooperation during the course of this audit. 
Yours sincerely 
James O'Halloran 
Deputy Commissioner of Taxation 
MON6Clotc c_ccsORE IN 3.013 DOE: -TG EictRcME 
ERPNOWL -Gi\n- AcTIV(Ty - R.K.ACD tea-rs c_129323-r-eD 
Tetkoocti On cl rvs Eci-cotA`ii i\)(4 co mics-riNCi
Krice_c_c--c-FORG pRopeKry -re-to-, 
IN\ i o(.3 or 
THE icieDicn- eosiN)Es5 ponN I (\)r) 1115 it
Page 2 of 6 
EFTA00263575