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Are administrative costs charged by the lender for the interest-free loan subject to GST?

April 26, 2017administrative charged costs GST interest-free Lender loan Subject

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Are administrative costs charged by the lender for the interest-free loan subject to GST?

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The administrative costs of setting up the interest-free loan are for a financial supply and are not subject to GST. The provision, acquisition or disposal of an interest in an interest-free loan is a financial supply under item 2 subregulation 40-5.09(3) of the GST Regulations.