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

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  

Note:

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

Division 75 - Sale of freehold interests etc.  

75-22  Increasing adjustment relating to input tax credit entitlement  

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(1)  

You have an increasing adjustment if:


(a) you make a *taxable supply of *real property under the *margin scheme; and


(b) an acquisition that you made of part of the interest, unit or lease in question was made through a supply that was *ineligible for the margin scheme; and


(c) you were, or are, entitled to an input tax credit for the acquisition.

The amount of the increasing adjustment is an amount equal to the *previously attributed input tax credit amount for the acquisition.

(2)  

You have an increasing adjustment if:


(a) you make a *taxable supply of *real property under the *margin scheme; and


(b) you acquired all or part of the interest, unit or lease in question by inheriting it; and


(c) the entity from whom you inherited (the deceased) had acquired part of the interest, unit or lease that you inherited through a supply that was *ineligible for the margin scheme; and


(d) the deceased was entitled to an input tax credit for that acquisition.

The amount of the increasing adjustment is an amount equal to the *previously attributed input tax credit amount for the acquisition.

(3)  

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You have an increasing adjustment if:


(a) you make a *taxable supply of *real property under the *margin scheme; and


(b) an acquisition that you made of part of the interest, unit or lease in question was made through a supply that was *ineligible for the margin scheme because of paragraph 75-5(3)(e), (f), or (g); and


(c) the entity from whom you made the acquisition had been entitled to an input tax credit for its acquisition.

(4)  

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You have an increasing adjustment if:


(a) you make a *taxable supply of *real property under the *margin scheme; and


(b) the acquisition that you made of the interest, unit or lease in question:


(i) was made through a supply that was *GST-free under Subdivision 38-J or Subdivision 38-O; or

(ii) was made through a supply (other than a taxable supply) from your *associate without *consideration and in the course or furtherance of an *enterprise that your associate *carried on; or

(iii) was made from your associate but not by means of a supply from your associate; and


(c) the entity from whom you acquired the interest, unit or lease:


(i) acquired part of the interest, unit or lease through a supply that would have been *ineligible for the margin scheme if it had been a supply of the whole of the interest, unit or lease; and

(ii) had been entitled to an input tax credit for its acquisition; and

(iii) was *registered or *required to be registered, at the time of your acquisition of the interest, unit or lease.

(5)  

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The amount of the *increasing adjustment under subsection (3) or (4) is an amount equal to 1/11 of:


(a) if you choose to apply an *approved valuation to work out the amount - an approved valuation of the part of the interest, unit or lease referred to in paragraph (3)(b) or subparagraph (4)(c)(i) as at the day on which the entity had acquired it; or


(b) otherwise - the *consideration for the entity's acquisition of that part of the interest, unit or lease.


 



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