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  


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 63 - Non-profit sub-entities  

63-40   Effect on adjustments of becoming a non-profit sub-entity  

If a branch of an entity becomes a * non-profit sub-entity , any * adjustment arising afterwards in relation to a supply, acquisition or importation, made by the entity through the branch before it became a non-profit sub-entity:

(a) is taken to be an adjustment that the non-profit sub-entity has, as if the non-profit sub-entity had made the supply, acquisition or importation; and

(b) is not taken to be an adjustment that the entity has.

For the purpose of applying subsection (1) to an adjustment under Division 129 relating to a thing acquired or imported before the branch became a * non-profit sub-entity , that Division applies as if:

(a) the extent to which the acquisition or importation of the thing was for a * creditable purpose were the extent to which the non-profit sub-entity acquired or imported it for a creditable purpose; and

(b) the extent to which the thing has been * applied for a creditable purpose since its acquisition or importation were the extent to which the non-profit sub-entity applied it for a creditable purpose.

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