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 60 - Pre-establishment costs  

60-15   Pre-establishment acquisitions and importations  

(1)  
An acquisition that you make is a pre-establishment acquisition , and an importation that you make is a pre-establishment importation , if:


(a) you do not * apply the thing acquired or imported for any purpose other than for a * creditable purpose relating to a * company not yet in existence; and


(b) the company comes into existence, and becomes * registered , within 6 months after the acquisition or importation; and


(c) you become a member, officer or employee of the company; and


(d) in the case of an acquisition - you have been fully reimbursed by the company for the * consideration you provided for the acquisition; and


(e) in the case of an importation - you have been fully reimbursed by the company:


(i) for the *assessed GST paid on the importation; and

(ii) for the cost of acquiring or producing the thing imported.

(2)  
However, the acquisition or importation is not a pre-establishment acquisition or a pre-establishment importation if:


(a) you are entitled to an input tax credit for the acquisition or importation; or


(b) the company acquires the thing acquired or imported, and that acquisition by the company is a * creditable acquisition .




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