A New Tax System (Goods and Services Tax) Act 1999
21‑15 Bad debts written off (creditable 21‑15 Bad debts written off (creditable acquisitions)
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21‑15 Bad debts written off (creditable acquisitions)
(1) You have an increasing adjustment if: (a) you made a *creditable acquisition for *consideration; and (b) the whole or part of the consideration is *overdue, but you have not provided the consideration overdue; and (c) the supplier of the thing you acquired writes off as bad the whole or a part of the debt, or the whole or a part of the debt has been overdue for 12 months or more. The amount of the increasing adjustment is 1/11 of the amount written off, or 1/11 of the amount that has been overdue for 12 months or more, as the case requires. (2) However, you cannot have an *adjustment under this section if you *account on a cash basis.