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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 136.10

Adjustments in relation to partly creditable acquisitions

             (1)  If you have an * adjustment under section 21-15, 21-20, 136-40 or 136-45 in relation to a * creditable acquisition that was * partly creditable, the amount of that adjustment is reduced to the following amount:

where:

"extent of consideration" is the extent to which you provide, or are liable to provide, the * consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.

"extent of creditable purpose" is the extent of * creditable purpose last used to work out:

                     (a)  the amount of the input tax credit for the acquisition; or

                     (b)  the amount of any * adjustment under Division 129 in relation to the acquisition;

expressed as a percentage of the total purpose of the acquisition.

"full adjustment" is what would be the amount of the adjustment worked out under section 21-15, 21-20, 136-40 or 136-45 if this section did not apply.

             (2)  If you have an * adjustment under section 21-15, 21-20, 136-40 or 136-45 in relation to a * creditable acquisition that was a * reduced credit acquisition and that was not * partly creditable (that is, it is wholly for a * creditable purpose because of Division 70), the amount of that adjustment is reduced to the following amount:

where:

"extent of consideration" is the extent to which you provide, or are liable to provide, the * consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.

percentage credit reduction is the reduced input tax credit percentage prescribed for the purposes of subsection 70-5(2) for an acquisition of that kind.

"full adjustment" is what would be the amount of the adjustment worked out under section 21-15, 21-20, 136-40 or 136-45 if this section did not apply.

             (3)  However, this section does not apply to an * adjustment that you have in relation to a * creditable acquisition if:

                     (a)  the amount of the input tax credit for the acquisition is worked out under Division 131; and

                     (b)  the adjustment is attributable to a tax period that is not later than the tax period to which an adjustment under section 131-55 relating to the acquisition is attributable.



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