A New Tax System (Goods and Services Tax) Act 1999
Note:Division 72 - Associates
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.
The amount of the input tax credit on an acquisition from your * associate that is without * consideration is as follows:
Full input tax credit × Extent of creditable purpose
full input tax credit
is what would have been the amount of the input tax credit for the acquisition if it had been made solely for a creditable purpose and you had provided, or had been liable to provide, all of the consideration for the acquisition.
(a) an * annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and
(b) the acquisition is not an acquisition of a kind specified in the regulations made for the purposes of paragraph 131-40(1)(b) ;
the amount of the input tax credit on the acquisition is worked out under section 131-40 as if you had provided, or had been liable to provide, all of the *consideration for the acquisition.
This section has effect despite subsection 11-30(3) (which is about the amount of input tax credits on partly creditable acquisitions).