Goods and Services Tax Advice
GSTA TPP 061W
Goods and services tax: is there an increasing adjustment when an enterprise asset is transferred to a spouse because of a marital breakdown where the acquisition of the asset was a creditable acquisition?
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Notice of Withdrawal
1. Goods and Services Tax Advice GSTA TPP 061 explains that there is an increasing adjustment required under Division 129 of the A New Tax System (Goods and Services Tax) Act 1999 when an enterprise asset (and creditable acquisition) is transferred to a spouse who is not registered for GST, or carrying on an enterprise for GST purposes, due to a marital breakdown.
3. The Commissioner's view is contained in paragraphs 47 and 48 of Goods and Services Tax Ruling GSTR 2003/6 Goods and services tax: transfers of enterprise assets as a result of property distributions under the Family Law Act 1975 or in similar circumstances.
Commissioner of Taxation
25 June 2014
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