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A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-4 - Special rules mainly about net amounts and adjustments  

Note:

The special rules in this Part mainly modify the operation of Part 2-4, but they may affect other Parts of Chapter 2 in minor ways.

Division 138 - Cessation of registration  

138-5  Adjustments for cessation of registration  

(1)  

You have an increasing adjustment if:


(a) your *registration is cancelled; and


(b) immediately before the cancellation takes effect, your assets include anything in respect of which you were, or are, entitled to an input tax credit.

Note:

Increasing adjustments increase your net amounts.

(2)  

The amount of the adjustment, for each thing referred to in paragraph (1)(b), is as follows:
 1 
11
×*Actual application of the thing×Applicable value

where:

applicable value is:


(a) the *GST inclusive market value of the thing immediately before the cancellation takes effect; or


(b) if you were, or are, entitled to an input tax credit for acquiring the thing - the amount of the *consideration that you provided, or were liable to provide, for your acquisition of the thing, but only if the amount is less than that value; or


(c) if you were, or are, entitled to an input tax credit for importing the thing - the cost to you of acquiring or producing the thing (plus the *assessed GST paid on its importation), but only if the amount is less than that value.

(3)  

However, an *adjustment does not arise under this section in respect of an asset if:


(a) there were one or more *adjustment periods for your acquisition or importation of the asset; and


(b) the last of those adjustment periods has ended before the cancellation of your *registration takes effect.

 



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