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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 134.10

Increasing adjustments for payments received by third parties

             (1)  You have an increasing adjustment if:

                     (a)  you receive a payment from an entity (the payer ) that supplied a thing that you acquire from another entity (whether or not that other entity acquired the thing from the payer); and

                     (b)  your acquisition of the thing from the other entity:

                              (i)  was a * creditable acquisition; or

                             (ii)  would have been a creditable acquisition but for a reason to which subsection (3) applies; and

                     (c)  the payment is in one or more of the following forms:

                              (i)  a payment of * money or * digital currency;

                             (ii)  an offset of an amount of money or digital currency that you owe to the payer;

                            (iii)  a crediting of an amount of money or digital currency to an account that you hold; and

                     (d)  the payment is made in connection with, in response to or for the inducement of your acquisition of the thing; and

                     (e)  the payment is not * consideration for a supply you make.

          (1A)  However, subsection (1) does not apply unless the supply of the thing by the payer:

                     (a)  was a * taxable supply; or

                     (b)  would have been a taxable supply but for any of the following:

                              (i)  the payer and the entity that acquired the thing from the payer being * members of the same * GST group;

                             (ii)  the payer and the entity that acquired the thing from the payer being members of the same * GST religious group;

                            (iii)  the payer being the * joint venture operator for a * GST joint venture, and the entity that acquired the thing from the payer being a * participant in the GST joint venture.

             (2)  The amount of the * increasing adjustment is an amount equal to the difference between:

                     (a)  either:

                              (i)  if your acquisition from the other entity was a * creditable acquisition--the amount of the input tax credit entitlement for the acquisition; or

                             (ii)  if your acquisition from the other entity would have been a creditable acquisition but for a reason to which subsection (3) applies--the amount that would have been the amount of the input tax credit entitlement for the acquisition had it been a creditable acquisition;

                            taking into account any other * adjustments that arose, or would have arisen, relating to the acquisition; and

                     (b)  the amount of the input tax credit to which you would have been entitled, or would (but for a reason to which subsection (3) applies) have been entitled, for that acquisition:

                              (i)  if the * consideration for the acquisition had been reduced by the amount of the payer's payment to you; and

                             (ii)  taking into account any other adjustments that arose, or would have arisen, relating to the acquisition, as they would have been affected (if applicable) by such a reduction in the consideration.

             (3)  This subsection applies to the following reasons why your acquisition of the thing from the other entity was not a * creditable acquisition:

                     (a)  you and the other entity are * members of the same * GST group;

                     (b)  you and the other entity are members of the same * GST religious group;

                     (c)  you are the * joint venture operator for a * GST joint venture, and the other entity is a * participant in the GST joint venture.

             (4)  However:

                     (a)  paragraph (3)(a) does not apply if you and the payer are * members of the same * GST group when the payment referred to in paragraph (1)(a) is made; and

                     (b)  paragraph (3)(b) does not apply if you and the payer are members of the same * GST religious group when that payment is made.



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