Question: val has carried on a hotel business for the last...
Val has carried on a hotel business for the last 10 years and is now selling this business to Barbara. A written contract for sale is prepared and it is agreed in the written contract terms that the supply will be of a going concern. Under those terms, Val agrees to supply the hotel business goodwill, the trade name and all other required items to carry on the business, as well as assign the employment contracts to the new owner.
Val has also agreed to be an employee in the business after its sale for a period of 1 year. As Val has not had a holiday for the last 10 years, Val decides to temporarily shut down the hotel business 3 months before the settlement date, which is the quiet period of trading.
Discuss whether or not sale of the hotel business from Val to Barbara is subject to GST.