A New Tax System (Goods and Services Tax) Regulations 1999 (repealed)

Part 4-2 - Special rules mainly about supplies and acquisitions  

Division 70 - Financial supplies (reduced credit acquisitions)  

70-5.02A   Acquisitions that attract reduced input tax credits: certain offshore supplies (Act s 70-5)  

For subsection 70-5(1) of the Act, an acquisition mentioned in regulation 70-5.02B that relates to making financial supplies gives rise to an entitlement to a reduced input tax credit (is a reduced credit acquisition ) if:

(a) the supply or transfer that gives rise to the acquisition (the relevant supply ):

(i) consists in:

(A) the transfer of something to an enterprise in the indirect tax zone (the receiving enterprise ) from an enterprise outside the indirect tax zone (the supplying enterprise ); or

(B) the doing of something for the receiving enterprise by the supplying enterprise; and

(ii) is a taxable supply because of section 84-5 of the Act (including supply that is not connected to the indirect tax zone because of section 84-15 of the Act); and

(b) the receiving enterprise and the supplying enterprise are closely related.

In determining the reduced credit acquisition, the price of the relevant supply is reduced by the amount passed on by the supplying enterprise to the receiving enterprise for any unabsorbed contribution from a third party (see regulation 70-5.02C ).


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