A New Tax System (Goods and Services Tax) Act 1999
The special rules
Special rules mainly about supplies and acquisitions
The special rules in this Part mainly modify the operation of
, but they may affect other Parts of
in minor ways.
Supplies in satisfaction of debts
105-5 Supplies by creditors in satisfaction of debts may be taxable supplies
You make a
(a) you supply the property of another entity (the
) to a third entity in or towards the satisfaction of a debt that the debtor owes to you; and
(b) had the debtor made the supply, the supply would have been a *
It does not matter whether:
(a) you made the supply in the course or furtherance of an *
that you *
(b) you are *
, or *
required to be registered
However, the supply is not a *
(a) the debtor has given you a written notice stating that the supply would not be a taxable supply if the debtor were to make it, and stating fully the reasons why the supply would not be a taxable supply; or
(b) if you cannot obtain such a notice
you believe on the basis of reasonable information that the supply would not be a taxable supply if the debtor were to make it.
This section has effect despite
(which is about what is a taxable supply).