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Location:
Sydney
Registered:
June 2002
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 GST or not
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Tue, 08 April 2003 10:45
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guys i need financial advice... immediately
back in 1998 my father leased out a car with a car dealership. the contracts were written and signed.
60 monthly installments and at the end of 60 months a resiual value has to be paid so the car can be signed over from them (the dealership) to us.
during 2000 (i think) GST was introduced.
our monthly installments were not effected by it, the contract does not mention anything about GST.
now 60 months have passed and the residual value is due (tomorrow) and they want 10% GST on top of that.
can anyone help me with this problem?
i dont know who's right but hopefully the contract will prevail against the dealerships word.
thanks for your help
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Location:
Brisbane, QLD, Australia
Registered:
May 2002
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Re: GST or not
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Tue, 08 April 2003 11:41
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Take the contract to a lawyer. Or phone up the tax department.
I can't tell you otherwise, as I havn't looked at the contract you signed with the dealer.
But I think that if there is a written amount for the final payment, then if they want to break contract and charge you a services tax, you can tell them that you'll pay the service tax, (GST), if they suck your balls. 
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Location:
Sydney
Registered:
June 2002
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Re: GST or not
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Tue, 08 April 2003 14:26
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AhAHhahAhhaha!
thanx heaps Apollo, i'll heed your advice
i can imagine it now
i'll be stuck in court
"mr. van, how do you plead?"
"dad, tell him to suck your balls"
<achem> "Suck my balls, your honour"
ahahahahahahahha!!!!!!!!
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Toymods Board Member
Location:
Sydney
Registered:
May 2002
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Re: GST or not
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Wed, 09 April 2003 00:30
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you may find gst is a legal requirement regardless of what contract you have
the tax dept would have the laws re: the changeover
check out their site http://www.ato.gov.au
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Location:
Sydney
Registered:
June 2002
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Re: GST or not
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Wed, 09 April 2003 12:00
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man that link is too much to handle!
so far i've only found luxury car tax but nothing on GST on car purchases. i think it is compulsory...
thanks for the link danny
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Location:
Sydney NSW
Registered:
December 2002
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Re: GST or not
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Thu, 10 April 2003 01:46
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i thought GST was meant to bring the prices of cars down  tell em u want a refund
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Registered:
May 2002
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Re: GST or not
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Tue, 15 April 2003 03:55
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| Apollo wrote on Tue, 08 April 2003 21:41 |
Take the contract to a lawyer. Or phone up the tax department.
I can't tell you otherwise, as I havn't looked at the contract you signed with the dealer.
But I think that if there is a written amount for the final payment, then if they want to break contract and charge you a services tax, you can tell them that you'll pay the service tax, (GST), if they suck your balls.
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yeh try that dude.. they will probably bite your balls off..
let me check the legislation & rulings... get back to ya dood.
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Registered:
May 2002
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Re: GST or not
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Tue, 15 April 2003 04:32
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It's interesting that they could ask for a (GST-inclusive) residual (or "balloon") payment, when the contract was drawn up pre-GST.
Apart from consulting the ATO and your accountant, you may also wish to "carefully" peruse the wording of the contract, esp. as relates to the balloon payment...If it doesn't mention a "service" fee, you *may* have a leg to stand on. Again, however, check with the ATO, as it (the GST) may be applied retrospectively...
PS. The usual disclaimers apply re: advice and all that...
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Location:
Melbourne
Registered:
April 2003
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Re: GST or not
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Tue, 15 April 2003 13:15
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What lease company ?
Nearly all of them had there contracts including a GST clause a long while before it was introduced.
Good luck.
E
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Location:
Sydney
Registered:
June 2002
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Re: GST or not
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Tue, 15 April 2003 14:36
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hey guys thanx for all your replies.
well i spoke it over with the dealership, and an accountant and a manager of a cracker factory and the conclusion is... YES i do have to pay for GST. its because after 60 months there are 2 options. pay the risidual value off and own the car or forfeit the car. paying residual value is the same as purchasing the car so GST will be included. well thats how it went down. we lost and the tax dept went home smiling. i could of used the money for sumthin more important too...
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Location:
Sydney
Registered:
May 2002
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Re: GST or not
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Mon, 21 April 2003 09:09
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I guess you know the answer but the residual on the pre-GST leases that had a residual payment are GST-able only. Stupid rule they put down to keep the ATO happy with the introduction of the GST.
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Location:
Sydney
Registered:
June 2002
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Re: GST or not
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Mon, 21 April 2003 12:53
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yeah, thats what i wanted to ask before. i dont reckon its fair that they can invalidate signed contracts
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