This information does not deal with adjustments that you may need to make under Division 129 of the A New Tax System (Goods and Services Tax) Act 1999, where you use something for a purpose which is different to its intended use.
Some acquisitions made in the course of M&A may be used for a different purpose than intended – for example, where the proposed structure of a transaction changes or does not proceed. GSTD 2012/3 provides our views on the application of Division 129 in the M&A context, particularly where the proposed M&A transaction doesn't proceed or proceeds in a manner different from that contemplated at the time of acquisition.
- GSTD 2012/3 Goods and services tax: does an adjustment for a change in extent of creditable purpose necessarily arise for services acquired in relation to a proposed merger and acquisition transaction that does not eventuate, or that does not proceed in the manner contemplated at the time the services were acquired?
- GSTR 2000/24 Goods and services tax: Division 129 - making adjustments for changes in extent of creditable purpose
- GSTR 2002/2 Goods and services tax: GST treatment of financial supplies and related supplies and acquisitions – paragraphs 270-271