75‑22 Increasing adjustment relating to 75‑22 Increasing adjustment relating to input tax credit entitlement

75‑22 Increasing adjustment relating to input tax credit entitlement

(1) You have an increasing adjustment if: (a) you make a *taxable supply of *real property under the *margin scheme; and (b) an acquisition that you made of part of the interest, unit or lease in question was made through a supply that was *ineligible for the margin scheme; and (c) you were, or are, entitled to an input tax credit for the acquisition. The amount of the increasing adjustment is an amount equal to the *previously attributed input tax credit amount for the acquisition. (2) You have an increasing adjustment if: (a) you make a *taxable supply of *real property under the *margin scheme; and (b) you acquired all or part of the interest, unit or lease in question by inheriting it; and (c) the entity from whom you inherited (the deceased) had acquired part of the interest, unit or lease that you inherited through a supply that was *ineligible for the margin scheme; and (d) the deceased was entitled to an input tax credit for that acquisition. The amount of the increasing adjustment is an amount equal to the *previously attributed input tax credit amount for the acquisition. (3) You have an increasing adjustment if: (a) you make a *taxable supply of *real property under the *margin scheme; and (b) an acquisition that you made of part of the interest, unit or lease in question was made through a supply that was *ineligible for the margin scheme because of paragraph 75‑5(3)(e), (f) or (g); and (c) the entity from whom you made the acquisition had been entitled to an input tax credit for its acquisition. (4) You have an increasing adjustment if: (a) you make a *taxable supply of *real property under the *margin scheme; and (b) the acquisition that you made of the interest, unit or lease in question: (i) was made through a supply that was *GST‑free under Subdivision 38‑J or Subdivision 38‑O; or (ii) was made through a supply (other than a taxable supply) from your *associate without *consideration and in the course or furtherance of an *enterprise that your associate *carried on; or (iii) was made from your associate but not by means of a supply from your associate; and (c) the entity from whom you acquired the interest, unit or lease: (i) acquired part of the interest, unit or lease through a supply that would have been *ineligible for the margin scheme if it had been a supply of the whole of the interest, unit or lease; and (ii) had been entitled to an input tax credit for its acquisition; and (iii) was *registered or *required to be registered, at the time of your acquisition of the interest, unit or lease. (5) The amount of the *increasing adjustment under subsection (3) or (4) is an amount equal to 1/11 of: (a) if you choose to apply an *approved valuation to work out the amount—an approved valuation of the part of the interest, unit or lease referred to in paragraph (3)(b) or subparagraph (4)(c)(i) as at the day on which the entity had acquired it; or (b) otherwise—the *consideration for the entity’s acquisition of that part of the interest, unit or lease.