58‑15 Adjustments for bad debts58‑15 Adjustments for bad debts

58‑15 Adjustments for bad debts

(1) For the purposes of determining whether an *adjustment arises under section 21‑5 or 21‑15 for the whole or a part of a debt relating to a *taxable supply or *creditable acquisition for which a *representative of an *incapacitated entity is liable to pay GST, or is entitled to an input tax credit, under section 58‑10: (a) the adjustment cannot arise if, when the whole or part of the debt is written off, or has been *overdue for 12 months, the representative *accounts on a cash basis; but (b) it does not matter whether the incapacitated entity accounts on a cash basis at that or any other time. (2) This section has effect despite subsections 21‑5(2) and 21‑15(2) (which preclude adjustments for bad debts when accounting on a cash basis).