105‑5 Supplies by creditors in satisfact105‑5 Supplies by creditors in satisfaction of debts may be taxable supplies

105‑5 Supplies by creditors in satisfaction of debts may be taxable supplies

(1) You make a taxable supply if: (a) you supply the property of another entity (the debtor) to a third entity in or towards the satisfaction of a debt that the debtor owes to you; and (b) had the debtor made the supply, the supply would have been a *taxable supply. (2) It does not matter whether: (a) you made the supply in the course or furtherance of an *enterprise that you *carry on; or (b) you are *registered, or *required to be registered. (3) However, the supply is not a *taxable supply if: (a) the debtor has given you a written notice stating that the supply would not be a taxable supply if the debtor were to make it, and stating fully the reasons why the supply would not be a taxable supply; or (b) if you cannot obtain such a notice—you believe on the basis of reasonable information that the supply would not be a taxable supply if the debtor were to make it. (4) This section has effect despite section 9‑5 (which is about what is a taxable supply).