Commonwealth Consolidated Acts

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The amount of input tax credits relating to offshore supplies

             (1)  The amount of the input tax credit for a * creditable acquisition that relates to a supply that is a * taxable supply because of section 84-5 is as follows:

start formula Full input tax credit times Extent of creditable purpose times Extent of consideration end formula


"extent of consideration" is:

                     (a)  if the * recipient is the supplier's * associate and the supply is without * consideration--100%; or

                     (b)  in any other case--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 to which the * creditable acquisition is for a * creditable purpose, expressed as a percentage of the total purpose of the acquisition.

"full input tax credit" is 1 1 / 10 of what would have been the amount of the input tax credit for the acquisition if:

                     (a)  the supply had been or is a * taxable supply otherwise than because of section 84-5; and

                     (b)  the acquisition had been made solely for a creditable purpose; and

                     (c)  you had provided, or had been liable to provide, all of the consideration for the acquisition.

          (1A)  However, if:

                     (a)  an * annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and

                     (b)  the acquisition is not an acquisition of a kind specified in the regulations made for the purposes of paragraph 131-40(1)(b);

the amount of the input tax credit on the acquisition is worked out under section 131-40 as if full input tax credit had the same meaning in subsection 131-40(2) as it has in subsection (1) of this section.

             (2)  This section has effect despite:

                     (a)  sections 11- 25 and 11-30 (which are about the amount of input tax credits for creditable acquisitions); and

                     (b)  section 72- 45 (which is about the amount of input tax credits on an acquisition from an associate without consideration).

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