| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012617354775
Ruling
Subject: GST and claiming reduced input tax credits during administration of liquidation of a company
Issue:
The Commissioner was asked to rule on the following issue.
Question
Are the various services acquired by the administrators and Liquidators of an incapacitated company, from a third party reduced credit acquisitions (RCAs) of debt collection services under Item 17 of Regulation 70-5.02 (Item 17) of the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)?
Answer
To the extent that services acquired during the period of the Voluntary Administration in relation to client debtors, the acquisitions are not a RCA under Item 17. Accordingly a reduced input tax credit is not available. During this period the acquisitions related to identification and quantification of debts of client debtors and not their collection or recovery.
To the extent that the services acquired relate to the recovery of debts from client debtors in the liquidation period, the acquisitions will qualify as a RCA under Item 17. To this extent a reduced input tax credit is available.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
