Client Number: 008259.1

Client Name: GeoTechnical Pty Ltd

Client Meeting: 12th April 2021

GeoTechnical Pty Ltd is a small engineering advisory firm operating out of Sydney, which began operating in January of the current tax year. Sinclair, the director of the firm, has sought your services for the following issues.

AUSTRALIAN LAW AND TAXATION CASES

Sinclair registered the business for GST when the business began operating; however, believes that he should not have because of a rumour he heard regarding the requisite threshold being $150,000. GeoTechnicals turnover (which are taxable supplies) so far is only $25,000 (excluding GST). The reason he is wanting to be registered is to ensure he can claim the input tax credits from the following outgoings purchased solely for the business (all items supplied to the business are taxable supplies):

• Furniture amounting to $3,300 (including GST).
• Computers and printing equipment amounting to $8,800 (including GST).
• Commercial rent of $22,000 (including GST).

Required: Advise Sinclair of the appropriateness of GST registration for his business and the ability to claim the input tax credits from the above outlined expenditure by answering the following question set. Ensure you make reference to appropriate legislative references.

1. Explain the appropriateness of claiming input taxes for the itemised outgoings. (4 marks)