Rest homes may be hit by proposed tax change

Under planned amendments to the Goods and Services Tax Act, refundable deposits made by people wishing to secure a place in a rest home, which till now were not taxed, may be subject to GST, Mr Pippos said.

Such deposits are made when a person cannot buy a room or an apartment in a rest home because the property's legal title cannot be separated. Instead, the tenant may pay a refundable deposit and pay a form of rent on top of that.

The amendment to the tax bill signified that the Government considered this deposit to be taxable, because it saw it as being, effectively, a part of that rent money, Mr Pippos said.

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