Tax Laws Amendment (2009 GST Administration Measures) Act 2010 (20 of 2010)

Schedule 1   Time limit on entitlements to input tax credits and fuel tax credits

Part 1   Amendments relating to input tax credits

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

7   After Division 90

Insert:

Division 93 - Time limit on entitlements to input tax credits

93-1 What this Division is about

Your entitlements to input tax credits for creditable acquisitions cease unless you include them in your net amounts within 4 years.

However, this time limit might not apply to any such entitlements relating to amounts that the Commissioner has notified to you, that arise as a result of fraud or evasion, or that you have notified to the Commissioner.

Note: These amounts are dealt with in sections 105-50 and 105-55 in Schedule 1 to theTaxation Administration Act 1953.

93-5 Time limit on entitlements to input tax credits

(1) You cease to be entitled to an input tax credit for a *creditable acquisition to the extent that you have not taken it into account in working out your *net amount for:

(a) the tax period to which the input tax credit would be attributable under subsection 29-10(1) or (2); or

(b) any other tax period for which you give to the Commissioner a *GST return during the period of 4 years after the day on which you were required to give to the Commissioner a GST return for the tax period referred to in paragraph (a).

Note: Section 93-10 sets out circumstances in which your entitlement to the input tax credit does not cease under this section.

(2) This section has effect despite section 11-20 (which is about who is entitled to input tax credits for creditable acquisitions).

93-10 Exceptions to time limit on entitlements to input tax credits

Commissioner has notified you of excess or refund etc.

(1) You do not cease under section 93-5 to be entitled to an input tax credit to the extent that:

(a) the input tax credit arises out of circumstances that also gave rise to the whole or a part of:

(i) an amount, or an amount of an excess, in relation to which paragraph 105-50(3)(a) in Schedule 1 to the Taxation Administration Act 1953 applies; or

(ii) a refund, other payment or credit in relation to which paragraph 105-55(1)(b) in Schedule 1 to that Act applies; and

(b) the Commissioner gave to you the notice referred to in that paragraph not later than 4 years after the end of the tax period to which the credit would be attributable under subsection 29-10(1) or (2) of this Act.

Note 1: Section 105-50 in Schedule 1 to the Taxation Administration Act 1953 deals with the time limit within which the Commissioner can recover indirect tax amounts, and section 105-55 in Schedule 1 to that Act deals with the time limit within which you can claim amounts relating to indirect tax.

Note 2: Section 93-15 of this Act may preclude this subsection from applying to the input tax credit, in which case section 93-5 of this Act will apply.

Excess relates to amount avoided by fraud or evaded

(2) You do not cease under section 93-5 to be entitled to an input tax credit to the extent that the input tax credit arises out of circumstances that also gave rise to:

(a) the whole or a part of an amount in relation to which paragraph 105-50(3)(b) in Schedule 1 to the Taxation Administration Act 1953 applies; or

(b) an amount of an excess, in relation to which that paragraph applies.

Note 1: Section 105-50 in Schedule 1 to the Taxation Administration Act 1953 deals with the time limit within which the Commissioner can recover indirect tax amounts.

Note 2: Section 93-15 of this Act may preclude this subsection from applying to the input tax credit, in which case section 93-5 of this Act will apply.

You have notified the Commissioner of refund etc.

(3) You do not cease under section 93-5 to be entitled to an input tax credit to the extent that:

(a) the input tax credit arises out of circumstances that also gave rise to the whole or a part of a refund, other payment or credit in relation to which paragraph 105-55(1)(a) in Schedule 1 to the Taxation Administration Act 1953 applies; and

(b) you gave to the Commissioner the notice referred to in that paragraph not later than 4 years after the end of the tax period to which the credit would be attributable under subsection 29-10(1) or (2) of this Act.

Note 1: Section 105-55 in Schedule 1 to the Taxation Administration Act 1953 deals with the time limit within which you can claim amounts relating to indirect tax.

Note 2: Section 93-15 of this Act may preclude this subsection from applying to the input tax credit, in which case section 93-5 of this Act will apply.

93-15 GST ceasing to be payable on the related supply

Section 93-10 does not apply if:

(a) GST has ceased to be payable (other than as a result of its payment) on the supply that is related to the *creditable acquisition for which you would be entitled to an input tax credit but for this section; and

(b) at the time of the cessation, you did not hold a *tax invoice for the creditable acquisition.