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  

Note:

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 70 - Financial supplies (reduced credit acquisitions)  

70-25   Sale of reduced credit acquisitions (Division 132)  

(1)  
If:


(a) you supply a * reduced credit acquisition in circumstances to which Division 132 applies; and


(b) you made the acquisition for a * creditable purpose because of this Division, or you applied the acquisition for a * creditable purpose because of this Division;

this section applies for the purposes of Division 132 .

(2)  
In working out the full input tax credit in subsection 132-5(2) , the reference to a * creditable purpose in paragraph (a) of the definition of full input tax credit is to be read as a reference to a * creditable purpose otherwise than because of Division 70 .

(3)  
In working out the adjusted input tax credit in subsection 132-5(2) , the extent of the * creditable purpose because of subsection 132-5(4) is increased by the following extent:


Extent of Division 70
creditable purpose
× Percentage credit
    reduction

where:

extent of Division 70 creditable purpose
has the same meaning as in section 70-20 .

percentage credit reduction
has the same meaning as in section 70-20 .




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