A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  


The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 111 - Reimbursement of employees etc.  

111-10   Amounts of input tax credits relating to reimbursements  

The amount of the input tax credit for a * creditable acquisition the * consideration for which is a reimbursement to which section 111-5 applies is an amount equal to 1/11 of the amount of the reimbursement.


However, if:

(a) the person incurring the expense incurs it in the capacity of an agent, * officer or partner; and

(b) the incurring of the expense is only in part related directly to his or her activities as your agent or officer, or as a partner, as the case requires;

the amount of the input tax credit under subsection (1) is reduced by an extent equivalent to the extent to which the incurring of the expense is not related directly to those activities.

This section has effect despite section 11-25 (which is about the amount of input tax credits for creditable acquisitions).

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