Commentary

V7.390 Option to tax—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.390 Option to tax—planning points to consider

Part V7 Tax planning | Commentary

V7.390 Option to tax—planning points to consider

The following planning points should be given consideration.

  1.  

    •     Remember that once an option to tax election on land or a building has been made, it cannot usually be revoked for 20 years. It is therefore important to take all relevant factors into account before making the option (and a long-term view as to the likely use and potential sale of the property).

  2.  

    •     The main reason for making an option to tax election is to enhance input tax recovery by making a supply taxable rather than exempt. However, this enhanced input tax recovery needs to be balanced against the possibility that potential tenants

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