Commonwealth Consolidated Acts

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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:

Method statement

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 the acquisition.

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 credit amount.

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