New Cafe Shop Pty Limited (NCS) is an Italian restaurant business. The company has done exceptionally well in the last few years and have commenced acquiring other similar type Italian restaurant businesses and successfully converting them.

NCS and decides to acquire Poor Business Pty Limited (PB) but unlike the other businesses which it has acquired, PB's owners are adamant that the company brand must be preserved, and all key employees and suppliers must be retained. NCS decides to go ahead with this proposal.

(a) Advise whether the Going Concern GST rule will apply in the above scenario. What specific factors are contributing to your conclusion?

After operating PB for some time, NCS decides to cease operating PB as an Italian restaurant business and operate a residential rent business. 

(b) Advise what the GST consequences are with the new proposed business, specifically in terms of GST which must be charged and can be claimed. 

Answer rating: 100% (QA)

a Going Concern GST Rule The Going Concern GST rule is likely to apply in the scenario where New Caf... View the full answer