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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 78 - Insurance  

Subdivision 78-C - Third parties  

78-70  Payments etc. to third parties by insured entities  

(1)  

The making of any payment by an entity to another entity is not to be treated as *consideration for a supply to the entity by that other entity, to the extent that:


(a) the payment is to discharge a liability of the entity to that other entity; and


(b) the payment is covered by a settlement of a claim under an *insurance policy under which the entity was insured against that liability.

(2)  

The making of any supply by an entity to another entity:


(a) is not to be treated as a *taxable supply by the entity; and


(b) is not to be treated as *consideration for a supply to the entity by that other, or any other, entity;

to the extent that:


(c) the supply is to discharge a liability of the entity to that other entity; and


(d) the supply is covered by a settlement of a claim under an *insurance policy under which the entity was insured against that liability.

(3)  

This section has effect despite section 9-5 (which is about what are taxable supplies) and section 9-15 (which is about consideration).

 



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