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  • 2 Registration requirements

    2.1. What are the registration and notification requirements for a representative upon appointment under the GST Act?

    Non-interpretative – straight application of the law

    Under section 58-20, a representative of an incapacitated entity is required to be registered in that capacity if the incapacitated entity is registered or required to be registered. Note that this section has effect despite what is said in section 23-5 about who is required to be registered. Section 25-1 provides that you must apply, in the approved form, to be registered within 21 days after becoming required to be registered.

    Subdivisions 260-B and 260-C of Schedule 1 to the TAA require a liquidator and receiver respectively to notify the Commissioner of Taxation of their appointment within 14 days. This notification is in addition to the obligations under Division 58.

    When the representative ceases to be a representative of the incapacitated entity, they must notify the Commissioner in an approved form within 21 days after ceasing to be the representative of the incapacitated entity. The Commissioner will then cancel the representative's registration.

    See also:

    2.2. Is a representative of an incapacitated entity who is appointed over only part of the assets required to register under section 58-20?

    Non-interpretative – straight application of the law

    Section 58-20 applies to a representative that is appointed over only part of the assets of an incapacitated entity.

    Section 58-20 states that a representative of an incapacitated entity is required to be registered in that capacity if the incapacitated entity is registered or required to be registered.

    There is no requirement under the GST legislation for a representative to have control over all the assets of the entity.

    If more than one representative is appointed over the assets of the incapacitated entity, each representative will be required to register under section 58-20 if the incapacitated entity is registered or required to be registered.

    2.3. Under Division 58, a representative of an incapacitated entity may be required to be registered. Upon registration, is the representative issued with a new ABN, or will the existing ABN of the incapacitated entity be used?

    Non-interpretative

    For all representatives that are not trustees in bankruptcy

    Once a representative of an incapacitated entity registers for GST, the Commissioner (in his capacity as Registrar for the ABN) will allow the representative to use the incapacitated entity's existing ABN for transactions conducted in its capacity as the representative of the incapacitated entity.

    We will set up a new running balance account under the incapacitated entity's ABN for each representative (as required) to cover post appointment liabilities and entitlements. These accounts are called Client Activity Centres (CACs) and each CAC created will be differentiated by a numerical suffix following the ABN, for example 123 456 789/1 for the incapacitated entity, 123 456 789/2 for the receiver and 123 456 789/3 for the provisional liquidator.

    For representatives that are trustees in bankruptcy

    For trustee appointments under the Bankruptcy Act (this term includes trustees of bankrupt estates and controlling trustees under Part X), the trustee will need to apply for a separate ABN and register for GST, in the normal manner, in respect of each appointment as trustee under the Bankruptcy Act. This new ABN will be used for all matters arising under the administration.

    Apply for an ABN and GST registration:

    When completing the ABN applications, trustees should tick the 'Fixed Trust' box. At attachment A, the trustee should enter its own name and TFN. The registration process will generate a new ABN, TFN and GST role for the administration.

      Last modified: 20 Jul 2018QC 16292