Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 136.10

  (1)   If you have an * adjustment under section   21 - 15, 21 - 20, 136 - 40 or 136 - 45 in relation to a * creditable acquisition that was * partly creditable, the amount of that adjustment is reduced to the following amount:

where:

"extent of consideration" is the extent to which you provide, or are liable to provide, the * consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.

"extent of creditable purpose" is the extent of * creditable purpose last used to work out:

  (a)   the amount of the input tax credit for the acquisition; or

  (b)   the amount of any * adjustment under Division   129 in relation to the acquisition;

expressed as a percentage of the total purpose of the acquisition.

"full adjustment" is what would be the amount of the adjustment worked out under section   21 - 15, 21 - 20, 136 - 40 or 136 - 45 if this section did not apply.

  (2)   If you have an * adjustment under section   21 - 15, 21 - 20, 136 - 40 or 136 - 45 in relation to a * creditable acquisition that was a * reduced credit acquisition and that was not * partly creditable (that is, it is wholly for a * creditable purpose because of Division   70), the amount of that adjustment is reduced to the following amount:

where:

"extent of consideration" is the extent to which you provide, or are liable to provide, the * consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.

"percentage credit reduction" is the reduced input tax credit percentage prescribed for the purposes of subsection   70 - 5(2) for an acquisition of that kind.

"full adjustment" is what would be the amount of the adjustment worked out under section   21 - 15, 21 - 20, 136 - 40 or 136 - 45 if this section did not apply.

  (3)   However, this section does not apply to an * adjustment that you have in relation to a * creditable acquisition if:

  (a)   the amount of the input tax credit for the acquisition is worked out under Division   131; and

  (b)   the adjustment is attributable to a tax period that is not later than the tax period to which an adjustment under section   131 - 55 relating to the acquisition is attributable.