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

Chapter 4 - The special rules  

Part 4-4 - Special rules mainly about net amounts and adjustments  

Note:

The special rules in this Part mainly modify the operation of Part 2-4 , but they may affect other Parts of Chapter 2 in minor ways.

Division 139 - Distributions from deceased estates  

139-5   Adjustments for distributions from deceased estates  

(1)    
You have an increasing adjustment if:

(a) you are the executor or trustee of a deceased estate; and

(b) you are * registered or * required to be registered ; and

(c) you supply an asset of the deceased estate to a beneficiary of the deceased estate; and

(d) the supply is not a * taxable supply and is not a supply that is * GST-free or * input taxed ; and

(e) you were, or are, or the deceased person was, entitled to an input tax credit for the deceased person ' s acquisition or importation of the asset.

Note:

Increasing adjustments increase your net amounts.

(2)    

The amount of the adjustment, for the asset, is as follows:

1   11

×

*Actual application of the thing

×

Applicable value

where:

applicable value
is:

(a) the * GST inclusive market value of the asset immediately before it is supplied; or

(b) if you were, or are, or the deceased person was, entitled to an input tax credit for the deceased person acquiring the thing - the amount of the * consideration that you or the deceased person provided, or was liable to provide, for the acquisition of the thing, but only if the amount is less than that value; or

(c) if you were, or are, or the deceased person was, entitled to an input tax credit for the deceased person importing the thing - the cost to you or the deceased person of acquiring or producing the thing (plus the *assessed GST paid on its importation), but only if the amount is less than that value.

(3)    
However, an * adjustment does not arise under this section in respect of the asset if:

(a) the asset related to an * enterprise that the deceased person * carried on , and the beneficiary intends to continue to carry on that enterprise; or

(b) there were one or more * adjustment periods for the deceased person ' s acquisition or importation of the asset, and the last of those adjustment periods has ended before the cancellation of your * registration takes effect.