GST issues registers
Insurance industry partnership3 Subrogation
Issue
Does section 78-40 only apply to payments made by insurers to which Division 78 has applied and not to payments to which Division 11 applies?
Non-interpretative - straight application of the law.
ATO view
Section 78-40 only operates where there has been a decreasing adjustment under Division 78. As provided by the 'chapeau' to that section:
'Division 19 applies in relation to a *decreasing adjustment that an insurer has under this Division...'. This Division being Division 78.
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