RETAIL LEASE RENT SCAM AND NCAT

(NCAT  overlooks the landlord’s tax compliance issue in rental payments.)

KINGSWOOD, NSW:   There are two things certain in life death and taxes. However, if you are a landlord in NSW you don’t need to worry about GST on rental payments. The New South Wales Civil and Administrative Tribunal has dismissed over 11 years of breaches of the GST act, allegedly committed by Fobupu Pty Ltd (Dr. Ghulam Akbar Khan). Since 2007, Gurjit Singh has been preyed upon by Dr. Ghulam Akbar Khan’s tax fraud during his tenancy with him. Dr. Khan has continuously demanded retail lease rent payments in cash to avoid paying GST in an attempt to circumvent paying taxes and resisted cheque or bank transfer. Mr. Singh has paid over a million dollar in payments to Dr. Khan and never received any receipt or tax invoice.

In 2007,  Gurjit Singh, who was new to the small business world leased a fully furnished restaurant from Dr. Ghulam Akbar Khan. Gurjit Singh paid for the fit out of the property partly upfront and in installments. Mr. Singh endeavored to maintain a decent commercial relationship and looked to avoid a path of dispute and requested to pay rent by cheque or bank transfer. However, Dr. Ghulam Akbar Khan repeatedly refused these methods of payments, and persistently demanding to pay the monthly rent in cash. On the 15th of December 2017, Gurjit Singh filed an application to NCAT Penrith registry to seek protection against forfeiture.

After Gurjit Singh approached New South Wales Civil and Administrative tribunal for relief and protection from Dr. Ghulam Akbar Khan. Interim orders were made on 17 Dec 2017 to grant relief. Interim orders restrained the landlord from forfeiting a lease or taking possession. The Tribunal also set the direction hearing date on 23 Jan 2018. Mr. Singh’s initial feeling was a relief when he first heard this news, however, this is just the beginning of a lengthy trial between Mr. Singh and Dr. Akbar Khan.

Gurjit Singh raised this claim to NCAT in 2017 because he finished a two year long renovating where he invested $ 150000+, he required invoices and receipts for his tax purposes, or else he could have been exposed to a huge tax penalty. Gurjit Singh hesitantly arose issues of rent invoice prior to 2017 due to the fact that there was a risk of eviction. Mr. Singh called Ghulam Akbar Khan to provide the tax invoice and receipts. In the phone conversation, Ghulam Akbar Khan admitted that he has not declared rental income to his accountant or tax office.  Moreover, The company, Fobupu Pty Ltd has no Australian Business Number, which is a serious tax compliance issues, paired with breaches of the GST Act, which requires to be dealt with by the tribunal.

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