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  

Note:

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 60 - Pre-establishment costs  

60-20   Creditable purpose  

(1)  


If, before a * company is in existence, you make an acquisition or importation:


(a) for the purpose of bringing the company into existence; or


(b) for the purpose of the company * carrying on an * enterprise after it is in existence;

you acquire or import the thing for a creditable purpose only to the extent that you acquire or import it for either or both of those purposes.

(2)  
However, you do not acquire or import the thing for a creditable purpose to the extent that:


(a) the acquisition or importation relates (directly or indirectly) to the company making supplies that would be * input taxed ; or


(b) the acquisition or importation is of a private or domestic nature.

(3)  


An acquisition or importation is not treated, for the purposes of paragraph (2)(a) , as relating to making supplies that would be * input taxed to the extent that the supply is made through an * enterprise , or a part of an enterprise, that the company will * carry on outside the indirect tax zone.

(4)  
This section has effect despite sections 11-15 and 15-10 (which are about creditable purpose).


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.