A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 138.5 Adjustments for cessation of registration

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 138.5

  (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:

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.