A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 72 - Associates  

CCH Note

For transitional provisions relating to a supply or acquisition that an incapacitated entity makes to or from an associate of the incapacitated entity, see note under Div 58 heading.

Subdivision 72-A - Supplies without consideration  

72-5   Taxable supplies without consideration  

(1)    
The fact that a supply to your * associate is without * consideration , does not stop the supply being a * taxable supply if:

(a) your associate is not * registered or * required to be registered ; or

(b) your associate acquires the thing supplied otherwise than solely for a * creditable purpose .

(2)    

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This section has effect despite paragraphs 9-5(a) and 84-5(1)(a) (which would otherwise require a taxable supply to be for consideration).

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History

S 72-5(2) amended by No 77 of 2017, s 3 and Sch 1 item 22, by substituting " 84-5(1)(a) " for " 84-5(1)(d) " , effective 1 July 2017. For application provisions, see note under Div 146 heading.

S 72-5(2) substituted by No 52 of 2016, s 3 and Sch 2 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26 . S 72-5(2) formerly read:

(2)
This section has effect despite paragraph 9-5(a) (which would otherwise require a taxable supply to be for consideration).

(3)    

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However, this section does not apply to any supply that is constituted by an insured entity settling a claim under an * insurance policy or by an entity (other than an * operator ) settling a claim under a * compulsory third party scheme .

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History

S 72-5(3) amended by No 67 of 2003, s 3 and Sch 11 item 12, by inserting " or by an entity (other than an *operator) settling a claim under a *compulsory third party scheme " after " *insurance policy " , applicable in relation to net amounts for tax periods starting on or after 1 July 2000.

S 72-5(3) inserted by No 177 of 1999, s 3 and Sch 1 item 86, effective 1 July 2000.

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