58Clawback of CR9 credit on later sale of defective goods

#### 58 Clawback of CR9 credit on later sale of defective goods (1) A credit under CR9 for tax on goods that were used to replace the whole or part of defective goods is subject to the condition that the claimant is liable to pay an amount under this section if the claimant later sells the defective goods. (2) Subject to subsection (2A), the amount payable by the claimant is calculated using the following formula:  (2A) If the claimant has borne tax on goods that were used as raw materials in repairing the defective goods, the amount payable by the claimant is the amount calculated using the formula in subsection (2) reduced by the amount of the tax borne. (3) The amount is to be treated as if it were tax that became payable by the claimant at the time of the later sale of the defective goods, and were due for payment as follows: (a) if the claimant is a quarterly remitter for the sales tax quarter in which the later sale happened—21 days after the end of that quarter; (b) in any other case—21 days after the end of the month in which the later sale happened. > Note: \[The main effect of treating the amount as if it were tax is to apply the collection and recovery rules in Part 5.\]