No more Gosford Musuem

[Sorted]

Link here https://www.dailytelegraph.com.au/ne...1aaede11e1756d

[roKWiz]

Link won't open for me but damn I haven't had a chance to get up to Gosford lately to look.

[fordomatic]

can someone copy and paste the story into here, need subscription to view

[DJR-351]

Try this from the Museum itself......

https://gosfordclassiccars.com.au/closed/

The Gosford Classic Car Museum has closed with the loss of 40 jobs after a two-year battle with the Australian Taxation Office.
Opening in 2016, the $70 million museum boasted the largest privately-owned car collection in the Southern Hemisphere and quickly became the Central Coast’s hottest new tourism attraction with 10,000 visitors through the gates a month.

However after nearly three years owner Tony Denny has pulled the pin, citing irreconcilable differences with the tax office which meant the museum was “left with no alternative but to close its doors”.

“I’m just so incredibly saddened and deeply disappointed the ATO couldn’t see reason,” Mr Denny said.

The site of the museum, the former Bunnings building at West Gosford, has been listed for sale while the cars will be liquidated in a fire sale organised by Lloyds Auction House on April 6-7.

All cars will be auctioned at no reserve.

The decision also torpedoes plans for a seven-storey, eco-friendly tower at the site featuring 6500sq m of retail floor space, world class auction house, display suits, gym and call centre.

Central Coast Council approved the Development Application in March last year, which would have created 200 new jobs and included a solar panel system that would generate enough electricity to power both it and the museum independent of the grid.

Auto Invest Pty Ltd was established in January 2015 as a car dealership with the intention of trading under the name Gosford Classic Cars and using its showroom as a unique way to market the vehicles, while at the same time giving the public access to such a vast collection and the Coast a much needed tourism drawcard.

Workshop manager Jason Fischer — who is among 40 staff to be let go — said the company sought advice from PricewaterhouseCoopers, law firms and the Motor Traders Association to ensure its business structure complied with relevant tax laws and industry regulations before opening its showroom.

He said it also approached the ATO in February 2016 and provided a questionnaire outlining its business model including an admission fee that would be used to cover some, but not all, of the costs of operating the “museum” component.

Mr Fischer said they did not hear back from the ATO, which they took as tacit approval for the business model.

The showroom opened in April, 2016, and was quickly lauded as the Coast’s hottest new tourism attraction, which even saw then Prime Minister Malcolm Turnbull hold his 62nd birthday celebrations surrounded by 500 friends and family.

By December 2016 the ATO launched an audit.

The following September the ATO issued the dealership an audit paper which essentially found that because Auto Invest used “museum” in its trading name, charged admission, had cars in the showroom which were different to those ultimately purchased by customers and that not all the general public were coming specifically to buy vehicles, it was operating as a dual-purpose venture.

According to the ATO this meant Auto Invest was not eligible for luxury car tax (LCT) and GST exemptions.

Mr Fischer said the company argued the museum concept was used to promote the sale of cars only and wasn’t a commercial purpose in itself.

He said even if the museum was a commercial purpose, it was ancillary to selling cars and therefore the tax exemptions under LCT and GST laws would still apply.

“The ATO also declined to explain why they consider promotion of trading stock using the museum concept is a secondary purpose, and therefore unacceptable, while other dealerships buying vehicles as a means of promoting their stock is acceptable,” Mr Fischer said.

“We still have no answer from the ATO on why, as a matter of principle, promoting new vehicles by purchasing cars for test driving and inspection only is acceptable, while promoting the sale of cars using the museum concept is not.

“It is unclear why the ATO has applied the dual-purpose test differently in Auto Invest’s case than it has for dealerships which purchase vehicles purely for use as demonstrators.”

He said the ATO ordered Auto Invest to stop using the word `museum’ in its name, stop charging admission and stop advertising.

However this saw visitation plummet to less than 1000 a month with losses of more than $2 million a year making the business unviable.

Mr Fischer said Auto Invest requested the ATO enter alternative dispute resolution, but despite initially agreeing to meet, the ATO issued its final assessment.

Faced with the prospect of spending the next 18 months to two years fighting the decision through the courts, Mr Fischer said the company had no other option than to close.

[marty351]

There have been numerous calls for a royal commission into the ATO. Is this happening or going to happen?

[roKWiz]

Originally Posted by marty351

There have been numerous calls for a royal commission into the ATO. Is this happening or going to happen?

If its anything like the R.C into banks what's the point, nothing will happen.

I hope that museum can stay open a little longer. edit... just read DJR's information bummer.

[Big_Daz]

This is such a bloody shame.... We are doing a family driving holiday to Tassie and back and I had already pre planned a day in Gosford just for this particular museum.. Bugger...

[roKWiz]

Originally Posted by Big_Daz

This is such a bloody shame.... We are doing a family driving holiday to Tassie and back and I had already pre planned a day in Gosford just for this particular museum.. Bugger...

Looks like a day at the Reptile park just up the road in Somersby as an alternative.

[aussiblue]

https://www.drive.com.au/motor-news/...0160530-gp7ot5

Filling the huge floor space is some 450 vehicles hailing from all corners of the globe. Australia, the US, UK, Italy and Germany feature strongly across the museum, but by the same token there are small niches such DMC Deloreans and Goggomobils covered off as well.

And like your typical Bunnings, everything in store is for sale.

Sounds like an exotic car yard to me possibly trying to claim the tax advantages of a not for profit museum. It is sad it is closing but perhaps the ATO was just doing it job to prevent tax evasion.

But if this is correct and that is all there was to it it does appear unfair https://www.dailymail.co.uk/news/art...ax-office.html and

In 2016 the ATO launched an audit and discovered the company used the term 'museum' in their title, which meant it was operating as a dual venture.

This also meant the business was not entitled to the luxury car tax (LCT) and GST exemptions, despite the fact that they were operating for a commercial purpose and the 'museum' was used to promote the cars.

The car mecca lost more than $2 million a year as visitors continued to decrease.

'We still have no answer from the ATO on why, as a matter of principle, promoting new vehicles by purchasing cars for test driving and inspection only is acceptable, while promoting the sale of cars using the museum concept is not,' owner Tony Denny told The Daily Telegraph.

'It is unclear why the ATO has applied the dual-purpose test differently in Auto Invest's case than it has for dealerships which purchase vehicles purely for use as demonstrators,' he said.

[deesun]

They say in the article they didn't hear back from the ATO so they went ahead anyway. Big mistake.

[Iggle Piggle]

Originally Posted by roKWiz

If its anything like the R.C into banks what's the point, nothing will happen.

If it's anything like the RC into banks, they'll smack accountants and tax payers instead of ATO and ATO staff...just like the banks RC punished the mortgage brokers instead of banks and bank staff

[Iggle Piggle]

They're up on Lloyd's now: https://www.lloydsonline.com.au/Auct...526.1550716821

During my rotisserie phase that spanned early to mid 90s I went through 4 RX4s...3 were very quick runners (2 x 2-door, 1 x 4-door), and a rear-ended 2-door parts car that could have easily been fixed. Most expensive was the 4-door that set me back $3800 - bridge-ported and not a cent to be spent. If I knew then what I see now: https://www.lloydsonline.com.au/LotD...&pgn=1&pgs=100

This one straight off teenage-me's wall: https://www.lloydsonline.com.au/LotD...&pgn=2&pgs=100

[Ben73]

That sucks. I went there twice and loved it.
It takes hours to look at everything properly. It was a fantastic set up and I was planning on visiting later this year to see any updates. Guess that won't be happening now.

[4321]

Sad to see this close. Seems this was one tax dodge that the public got something out of not like all the others where we just cop it for no advantage

[davship]

Originally Posted by Iggle Piggle

They're up on Lloyd's now: https://www.lloydsonline.com.au/Auct...526.1550716821

During my rotisserie phase that spanned early to mid 90s I went through 4 RX4s...3 were very quick runners (2 x 2-door, 1 x 4-door), and a rear-ended 2-door parts car that could have easily been fixed. Most expensive was the 4-door that set me back $3800 - bridge-ported and not a cent to be spent. If I knew then what I see now: https://www.lloydsonline.com.au/LotD...&pgn=1&pgs=100

This one straight off teenage-me's wall: https://www.lloydsonline.com.au/LotD...&pgn=2&pgs=100

Love the sound of a well tuned Rotary. Remember them very well back in the day. Damm that RX4 was sold where i used to work (Tynan Motors)

[DJR-351]

Originally Posted by Iggle Piggle

They're up on Lloyd's now: https://www.lloydsonline.com.au/Auct...526.1550716821

During my rotisserie phase that spanned early to mid 90s I went through 4 RX4s...3 were very quick runners (2 x 2-door, 1 x 4-door), and a rear-ended 2-door parts car that could have easily been fixed. Most expensive was the 4-door that set me back $3800 - bridge-ported and not a cent to be spent. If I knew then what I see now: https://www.lloydsonline.com.au/LotD...&pgn=1&pgs=100

This one straight off teenage-me's wall: https://www.lloydsonline.com.au/LotD...&pgn=2&pgs=100

I'll take the E49/E38 Chargers thanks, please deliver to................

[Craig@AUDI]

Originally Posted by davship

Love the sound of a well tuned Rotary

Agreed!

[zoesgift]

i wonder how many art museums display their items and sell them over the course of time here in Australia as a comparison?

[FairmontGS]

It was a tax dodge. They got caught.

\End thread.

[b0son]

Sounds like they didn't get advice from the relevant tax specialist....

[Fev]

They never hid what they were doing. It was well known how they operated and the ATO showed no interest in giving advice to a tax payer attempting to pay their share when it was requested.

Just another decent piece of Australia that people actually enjoyed, that created jobs and tourism ruined by a useless corrupt government body.

Central coast council and other business groups in the area would be fuming

[b0son]

Originally Posted by Fev

They never hid what they were doing. It was well known how they operated and the ATO showed no interest in giving advice to a tax payer attempting to pay their share when it was requested.

The ATO don't provide advice, they provide rulings. You get advice from an accountant, you get a ruling if you cant get clear advice. Sounds like they did neither.

[zoesgift]

yep couldn't agree more with the last statement. they never hid what they were doing and didn't seem to care. so comments above about the govt closing something down which created jobs tourism etc need to be considered from the eyes of the owners of the said museum ie their actions caused the loss of jobs,interest and tourism

[Fev]

Sounds like they approached available appropriate bodies for advice and every one of them let them down. And surely the ATO has a department which helps determine complex businesses tax obligations and if not, well thats just sad

[73 4V XB]

Is this the auctionon YouTube.
https://youtu.be/C0k-WSmGWmM

[aussiblue]

In general no Government agency will give an individual or entity legal advice relating to their own legislation or review related documents or specifically confirm if something is right, wrong, valid or invalid in respect of their legislation. The ATO is actually an exception in that it can obtain and provide Commissioner's rulings (private and public) per https://www.ato.gov.au/General/ATO-advice-and-guidance/ and http://unimelb.libguides.com/austral...xation_law/ato

The taxation rulings system allows the Commissioner to make binding rulings that the Commissioner must honour, meaning that a taxpayer who relies on a ruling cannot later be penalised by the ATO, even if the view expressed in the ruling is later found by a Court to be incorrect.
The binding rulings include:

Public rulings - advice issued by the ATO to explain an application of tax law to taxpayers generally, a class of taxpayers or a particular arrangement, and include:
Taxation rulings (TR)
Income Tax Rulings (ITR)
Goods and Services Tax Rulings (GSTR)
Taxation Determinations (TD)
Goods and Services Tax Determinations (GSTD)
Class rulings (CR)
Product rulings (PR)
Private rulings - advice on the application of tax law to a particular taxpayer in relation to a specified arrangement. Only that taxpayer may rely on the private ruling. Private rulings may later be made public, without identifying the taxpayer concerned, as guidance to others. These published versions of private rulings are called 'interpretive decisions' (IDs).
Oral rulings - advice on a simple matter related to the tax affairs of a taxpayer who is an individual.

It would appear they unwisely went ahead without getting a relevant or full ruling.

[nuthin' fancy]

They should have called it a church and not a museum.

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