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  • 3 Tax periods

    3.1. What is the applicable tax period for the representative upon their appointment?

    Non-interpretative – straight application of the law

    Under section 58-35, the tax periods applying to the incapacitated entity also apply to the representative.

    The representative's first tax period as a representative commences on the day that they become a representative of the incapacitated entity. Similarly, the representative's concluding tax period ends at the end of the day on which the representative ceases to be a representative of the incapacitated entity.

    3.2. What happens to the current tax period of the incapacitated entity when a representative is appointed?

    Non-interpretative – straight application of the law

    Section 27-39 provides that the tax period applying to an incapacitated entity at the time it becomes incapacitated (called the first tax period), ends at the end of the day before the entity became incapacitated.

    The next tax period starts on the day after the first tax period ends and concludes when the first tax period would have ended. Section 27-39 provides a mechanism to ensure that GST consequences flowing from pre and post-appointment transactions can be separated.

      Last modified: 20 Jul 2018QC 16292