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Edited version of private advice
Authorisation Number: 1051625100077
Date of advice: 7 January 2020
Ruling
Subject: Entitlement to reduced input tax credits on certain acquisitions of services from closely related entities.
Question
Is a Foreign Bank Branch in Australia (FBB) entitled to 75% reduced input tax credits (RITCs) for certain services acquired from the Foreign Bank's Head Office (FBHO) and the Foreign Bank's Service Hub (FBSH), as closely related entities, in accordance with subsection 70-5.02A(3) of the A New Tax System (Goods and Services Tax) Regulations 2019?
Answer
To the extent that the services acquired by FBB from FBHO and FBSH match the facts and analysis and fall within certain items in the table in subsection 70-5.02A(3) of the GST Regulations, FBB will be entitled to claim a RITC of 75%.
To the extent that the services acquired do not fall within a particular item in the table in subsection 70-5.02A(3) of the GST Regulations, FBB is not entitled to claim a RITC for the acquisition from FBHO and FBSH.
This ruling applies from:
7 January 2020
This ruling ceases on:
6 January 2024
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Regulations 2019 subsection 70-5.02(1)
A New Tax System (Goods and Services Tax) Regulations 2019 subsection 70-5.02A(3)