Commonwealth Consolidated Acts
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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 136.45
Recovering amounts previously written off (creditable acquisitions)
(1) The amount of a
* decreasing adjustment that you have under section 21-20, relating to a
creditable acquisition that is
* creditable at less than 1 / 11 of the consideration, is worked out under
this section and not under section 21-20.
(2) This is how to work out the amount:
Step 1 . Work out the amount of the input tax credit (if any) to
which you were entitled for the acquisition, taking into account any previous
* adjustments for the acquisition. This amount is the previous credit amount
Step 2 . Add together:
(a) the amount or amounts previously written off as
bad from the debt to which the decreasing adjustment relates; and
(b) the amount of the debt that has been
* overdue for 12 months or more (other than amounts already written off).
Step 3 . Subtract the step 2 amount from the total amount of the
* consideration that you have either provided, or are liable to provide, for
Step 4 . Add to the step 3 amount an amount equal to the amount
or amounts, written off or overdue for 12 months or more, that you have paid.
Step 5 . Work out the amount of the input tax credit (if any),
taking into account any previous * adjustments for the acquisition (but not
adjustments relating to bad debts or debts overdue), to which you would be
entitled for the acquisition if the * consideration for the acquisition were
the step 4 amount. This amount of GST is the adjusted credit amount .
Step 6 . Subtract the previous credit amount from the adjusted
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