The Administrative Review Tribunal (‘ART’) recently held that a taxpayer had carried on an enterprise of dog breeding for GST purposes.

He had lodged activity statements for the quarters ended 30 September 2018 to 31 December 2021 inclusive, claiming input tax credits (‘ITCs’) for the dog breeding activities he carried on from his home (among other activities).

The ATO disallowed the taxpayer’s claims for the above periods, arguing that enterprises were not carried on, and that there was a lack of appropriate substantiation (among other reasons).

The ART however held that the taxpayer’s dog breeding operation was an enterprise for GST purposes, noting that his activities had “the necessary commercial character.”  Therefore, the taxpayer was entitled to ITCs for that enterprise.

However, the ART affirmed the ATO’s decision to reduce the taxpayer’s other ITC claims, such as in relation to stamp duty on the acquisition of a property and for café and grocery expenses.

The ART also admonished the taxpayer for apparently using artificial intelligence in the presentation of his case, as he appeared to rely on cases and principles that did not exist.