Legal submissions have finished and the High Court has reserved its decision in a case which could have widespread ramifications for the Goods and Services Tax (GST).
The Tax Commissioner is appealing against a ruling made by the Federal Court in the Reliance Carpet case.
The court found GST could not be charged on a deposit which had been surrendered in an aborted property deal.
This afternoon the counsel for the respondent, Jennifer Batrouney SC, examined the purpose of a deposit.
She argued that a deposit is paid wholly for the vendor's benefit, and not for the rights and obligations of a contract.
The case has been closely followed by analysts who say millions of dollars of tax revenue is in play and the Tax Office could be liable to pay widespread refunds.
-abc.net.au
