A New Tax System (Goods and Services Tax) Act 1999
70‑25 Sale of reduced credit acquisition70‑25 Sale of reduced credit acquisitions (Division 132)
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70‑25 Sale of reduced credit acquisitions (Division 132)
(1) If: (a) you supply a *reduced credit acquisition in circumstances to which Division 132 applies; and (b) you made the acquisition for a *creditable purpose because of this Division, or you applied the acquisition for a *creditable purpose because of this Division; this section applies for the purposes of Division 132. (2) In working out the full input tax credit in subsection 132‑5(2), the reference to a *creditable purpose in paragraph (a) of the definition of full input tax credit is to be read as a reference to a *creditable purpose otherwise than because of Division 70. (3) In working out the adjusted input tax credit in subsection 132‑5(2), the extent of the *creditable purpose because of subsection 132‑5(4) is increased by the following extent:
Start formula Extent of Division 70 creditable purpose times Percentage credit reduction end formula
where:
extent of Division 70 creditable purpose has the same meaning as in section 70‑20.
percentage credit reduction has the same meaning as in section 70‑20.