Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 159.5

Ceasing to account on a cash basis--amounts not previously attributed

             (1)  The GST payable by you on a * taxable supply, the input tax credit to which you are entitled for a * creditable acquisition, or an * adjustment that you have, is attributable to a particular tax period (the transition tax period ), and not to any other tax period, if:

                     (a)  at the start of the transition tax period, you cease to * account on a cash basis; and

                     (b)  the GST on the supply, the input tax credit on the acquisition, or the adjustment, was not attributable, to any extent, to a previous tax period during which you accounted on a cash basis; and

                     (c)  it would have been attributable to that previous tax period had you not accounted on a cash basis during that period.

For accounting on a cash basis, see Subdivision 29-B.

Example:    In tax period A in the following diagram, you issue an invoice for a supply that you made, but you receive no payment for the supply until tax period D. However, you cease to account on a cash basis at the start of tax period C (which is therefore the transition tax period).

 

           

                   Under section 29-5, the supply was not attributable to tax period A (because at the time you were accounting on a cash basis), but it would have been attributable to that period if you had not been accounting on a cash basis (because you issued the invoice in that period). Therefore the supply is attributable to tax period C (the transition tax period).

             (2)  This section has effect despite sections 29-5, 29-10 and 29-20 (which are about attributing GST on supplies, input tax credits on acquisitions, and adjustments) and any other provisions of this Chapter.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback