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

Chapter 4 - The special rules  

Part 4-1 - Special rules mainly about particular ways entities are organised  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 so far as that Part deals with liability for GST and entitlement to input tax credits, but the special rules also affect other aspects of Part 2-2 and the other Parts of Chapter 2 .

Division 58 - Representatives of incapacitated entities  

58-10   Circumstances in which representatives have GST-related liabilities and entitlements  

General rule

(1)  
A *representative of an *incapacitated entity :


(a) is liable to pay any GST that the incapacitated entity would, but for this section or section 48-40 , be liable to pay on a *taxable supply or a *taxable importation ; and


(b) is entitled to any input tax credit that the incapacitated entity would, but for this section or section 48-45 , be entitled to for a *creditable acquisition or a *creditable importation ; and


(c) has any *adjustment that the incapacitated entity would, but for this section or section 48-50 , have;

to the extent that the making of the supply, importation or acquisition to which the GST, input tax credit or adjustment relates is within the scope of the representative ' s responsibility or authority for managing the incapacitated entity ' s affairs.

Exceptions for certain taxable supplies

(2)  
This section does not apply to the GST payable on a *taxable supply to the extent that one or more of the following apply:


(a) the *incapacitated entity received the *consideration for the supply before the *representative became a representative of the incapacitated entity;


(b) if, under Division 83 or section 84-5 or 86-5 , the GST is payable by the recipient of the supply - the incapacitated entity provided the consideration for the supply before the representative became a representative of the incapacitated entity;


(c) if:


(i) the supply is a supply for which a *voucher to which Division 100 applies is redeemed; and

(ii) the incapacitated entity supplied the voucher before the representative became a representative of the incapacitated entity;
the consideration for the supply referred to in subparagraph (i) does not exceed the consideration provided for the incapacitated entity ' s supply of the voucher. Exception for certain creditable acquisitions

(3)  
This section does not apply to an input tax credit for a *creditable acquisition to the extent that the *incapacitated entity provided the *consideration for the acquisition before the *representative became a representative of the incapacitated entity. Exceptions for certain adjustments

(4)  
This section does not apply to an *adjustment to the extent that one or more of the following apply:


(a) if the adjustment relates to a supply - the *incapacitated entity received the *consideration for the supply before the *representative became a representative of the incapacitated entity;


(b) if the adjustment relates to an acquisition - the incapacitated entity provided the consideration for the supply before the representative became a representative of the incapacitated entity;


(c) the adjustment would not be attributable to a tax period applying to the representative in the capacity of a representative of the incapacitated entity. Incapacitated entity not liable to pay GST etc.

(5)  
An *incapacitated entity or, if the incapacitated entity is a *member of a *GST group , the *representative member of that group:


(a) is not liable to pay the GST on a *taxable supply or a *taxable importation to the extent that a *representative of the incapacitated entity is liable under this section to pay the GST on the supply or importation; and


(b) is not entitled to the input tax credit for a *creditable acquisition or a *creditable importation to the extent that a representative of the incapacitated entity is entitled under this section to the input tax credit for the acquisition or importation; and


(c) does not have an *adjustment to the extent that a representative of the incapacitated entity has the adjustment under this section. Other

(6)  


This section has effect despite sections 9-40 , 11-20 , 13-15 , 15-15 , 83-5 , 84-10 and 86-5 and subsections 48-40(1) and (1A) , 48-45(1) and 48-50(1) (which are about who is liable for GST, and who is entitled to input tax credits).



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