Commonwealth Consolidated Acts

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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 159.15

Ceasing to account on a cash basis--bad debts

             (1)  If:

                     (a)  the GST payable by you on a * taxable supply or the input tax credit to which you are entitled for a * creditable acquisition is attributable to a particular tax period (the transition tax period) under section 159-5 or 159-10; and

                     (b)  before the start of the transition tax period, the whole or part of a debt relating to the * consideration for the supply or acquisition is written off as bad;

then:

                     (c)  the amount written off, and any part of that amount recovered before the start of the transition tax period, is to be treated, for the purposes of Division 21, as if at all relevant times you were not * accounting on a cash basis; and

                     (d)  any adjustment arising under Division 21 as a result is attributable to the transition tax period.

             (2)  This section has effect despite subsections 21-5(2) and 21-15(2) (which preclude adjustments for bad debts when accounting on a cash basis) and section 29-20 (which is about attributing adjustments).



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