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
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.
Div 139 inserted by No 92 of 2000, s 3 and Sch 11 item 11H, effective 1 July 2000.
You have an increasing adjustment if:
(a) you are the executor or trustee of a deceased estate; and
(b) you are *registered or *required to be registered; and
(c) you supply an asset of the deceased estate to a beneficiary of the deceased estate; and
(d) the supply is not a *taxable supply and is not a supply that is *GST-free or *input taxed; and
(e) you were, or are, or the deceased person was, entitled to an input tax credit for the deceased person's acquisition or importation of the asset.
Increasing adjustments increase your net amounts.
The amount of the adjustment, for the asset, is as follows:
| 1 |
|×||*Actual application of the thing||×||Applicable value|
applicable value is:
(a) the *GST inclusive market value of the asset immediately before it is supplied; or
(b) if you were, or are, or the deceased person was, entitled to an input tax credit for the deceased person acquiring the thing - the amount of the *consideration that you or the deceased person provided, or was liable to provide, for the acquisition of the thing, but only if the amount is less than that value; or
(c) if you were, or are, or the deceased person was, entitled to an input tax credit for the deceased person importing the thing - the cost to you or the deceased person of acquiring or producing the thing (plus the *assessed GST paid on its importation), but only if the amount is less than that value.
Definition of "applicable value" amended by No 39 of 2012, s 3 and Sch 1 item 93, by substituting "*assessed GST" for "GST" in para (c), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
However, an *adjustment does not arise under this section in respect of the asset if:
(a) the asset related to an *enterprise that the deceased person *carried on, and the beneficiary intends to continue to carry on that enterprise; or
(b) there were one or more *adjustment periods for the deceased person's acquisition or importation of the asset, and the last of those adjustment periods has ended before the cancellation of your *registration takes effect.
S 139-5 inserted by No 92 of 2000, s 3 and Sch 11 item 11H, effective 1 July 2000.