| Disclaimer This edited version has been archived due to the length of time since original publication.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 written advice
Authorisation Number: 1012824618822
Date of advice: 25 June 2015
Ruling
Subject: GST and overpaid GST
Question 1
Will the Commissioner, in relation to the transactions where the settlement discount gives rise to a decreasing adjustment that exceeds $75, exercise his discretion under PSLA 2004/11 to treat the document provided as an adjustment note so that you can make decreasing adjustments?
Answer
No, the Commissioner, in relation to the transactions where the settlement discount gives rise to a decreasing adjustment that exceeds $75, will not exercise his discretion under PSLA 2004/11 to treat the document provided as an adjustment note.
This ruling applies for the following periods:
The scheme commences on:
Relevant facts and circumstances
You are registered for GST.
You provided discounts to your customers and remitted too much GST.
You have to make decreasing adjustments.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 subsection 29-20(3), subsection 29-70, 29-75(1) & (2)
Reasons for decision
The Commissioner, in relation to the transactions where the settlement discount gives rise to a decreasing adjustment that exceeds $75, will not exercise his discretion under PSLA 2004/11 to treat the document provided as an adjustment note.
However, in this instance, you can use the document provided to claim decreasing adjustments provided it contains the required minimum information, you are satisfied that it correctly reflects the
correct decreasing adjustment amounts, have records to substantiate your claims while exercising reasonable care and acting in good faith.
You are expected to take reasonable steps and update your procedures so that you can correctly identify future adjustments.
You cannot make all the adjustments in one BAS.
You are entitled to correct the errors by way of an adjustment in your previous BASs.