63‑40 Effect on adjustments of becoming 63‑40 Effect on adjustments of becoming a non‑profit sub‑entity

63‑40 Effect on adjustments of becoming a non‑profit sub‑entity

(1) If a branch of an entity becomes a *non‑profit sub‑entity, any *adjustment arising afterwards in relation to a supply, acquisition or importation, made by the entity through the branch before it became a non‑profit sub‑entity: (a) is taken to be an adjustment that the non‑profit sub‑entity has, as if the non‑profit sub‑entity had made the supply, acquisition or importation; and (b) is not taken to be an adjustment that the entity has. (2) For the purpose of applying subsection (1) to an adjustment under Division 129 relating to a thing acquired or imported before the branch became a *non‑profit sub‑entity, that Division applies as if: (a) the extent to which the acquisition or importation of the thing was for a *creditable purpose were the extent to which the non‑profit sub‑entity acquired or imported it for a creditable purpose; and (b) the extent to which the thing has been *applied for a creditable purpose since its acquisition or importation were the extent to which the non‑profit sub‑entity applied it for a creditable purpose.