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Financial services - questions and answers

 
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Debt factoring

(a) added, (u) updated, (w) withdrawn

Issue no

Issue

Date

History

 

Preamble

    

8.1

Has a debt factor made a taxable supply when it provides sales accounting services or debt collection services under a debt factoring arrangement?

1 January 2001

  

8.2

Is a sales accounting service that is provided as part of a debt factoring arrangement an incidental financial supply?

1 January 2001

  

8.3

Is the assignor entitled to an input tax credit (or a reduced input tax credit) for the acquisition of the sales accounting or debt collection services?

1 January 2001

  

8.4

Is a debt factor entitled to input tax credits (or reduced input tax credits) for acquisitions it makes in relation to the financial supply of the acquisition of the interest in the debt?

1 January 2001

  

8.5

If you are a supplier (assignor) and you assign a debt to a debt factor, whether on a recourse or non-recourse basis, what is the consideration for the assignment?

1 January 2001

  

8.6

If you are a supplier accounting for GST on a non-cash basis and you assign a debt to a debt factor, whether on a recourse or non-recourse basis, when do you account for the GST on the taxable supply to which the debt relates? How much GST should you account for?

1 January 2001

  

8.7

If you are a supplier accounting for GST on a non-cash basis and you assign a debt to a debt factor, whether or not on a recourse or non-recourse basis, can you claim a decreasing adjustment for a bad debt?

1 January 2001

  

8.8

If you are a supplier accounting for GST on a cash basis and you sell a debt to a debt factor, whether on a recourse or non-recourse basis, when do you account for the GST on the taxable supply to which the debt relates? How much GST should you account for?

1 January 2001

  

8.9

If you are a recipient accounting for GST on a non-cash basis and you claim an input tax credit for an acquisition but do not provide all or a part of the consideration for the acquisition, do you need to make an increasing adjustment under Division 21?

1 January 2001

  

Sections within Debt factoring

Last Modified: Monday, 17 June 2013
 
Table of contents
Introduction
Hire purchase agreements and chattel mortgage
Loans
Bank accounts
Securities transactions
Foreign currency, foreign exchange rates and travellers' cheques
Superannuation funds
Financial acquisitions threshold
Debt factoring
Preamble
8.1. Has a debt factor made a taxable supply when it provides sales accounting services or debt collection services under a debt factoring arrangement?
8.2. Is a sales accounting service that is provided as part of a debt factoring arrangement an incidental financial supply?
8.3. Is the assignor entitled to an input tax credit (or a reduced input tax credit) for the acquisition of the sales accounting or debt collection services?
8.4. Is a debt factor entitled to input tax credits (or reduced input tax credits) for acquisitions it makes in relation to the financial supply of the acquisition of the interest in the debt?
8.5. If you are a supplier (assignor) and you assign a debt to a debt factor, whether on a recourse or non-recourse basis, what is the consideration for the assignment?
8.6. If you are a supplier accounting for GST on a non-cash basis and you assign a debt to a debt factor, whether on a recourse or non-recourse basis, when do you account for the GST on the taxable supply to which the debt relates? How much GST should you account for?
8.7. If you are a supplier accounting for GST on a non-cash basis and you assign a debt to a debt factor, whether or not on a recourse or non-recourse basis, can you claim a decreasing adjustment for a bad debt?
8.8. If you are a supplier accounting for GST on a cash basis and you sell a debt to a debt factor, whether on a recourse or non-recourse basis, when do you account for the GST on the taxable supply to which the debt relates? How much GST should you account for?
8.9. If you are a recipient accounting for GST on a non-cash basis and you claim an input tax credit for an acquisition but do not provide all or a part of the consideration for the acquisition, do you need to make an increasing adjustment under Division 21?
Leases
Foreign banks
Money transfer service
Share management fishery
Investor directed portfolio services
Hire purchase arrangements and apportionment methodology
Credit card surcharge
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