A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 90 - Company amalgamations  

90-35   Amalgamating companies accounting on a cash basis  

(1)    
If:

(a) immediately before * amalgamation , an * amalgamating company * accounted on a cash basis ; and

(b) GST payable by the company on a * taxable supply , an input tax credit to which the company was entitled for a * creditable acquisition , or an * adjustment that the company had, was not attributable, before the amalgamation, to any of the tax periods applying to the company; and

(c) the GST, input tax credit or adjustment would have been attributable to such a tax period if the company had not accounted on a cash basis during that period; and

(d) immediately after the amalgamation, the * amalgamated company does not account on a cash basis;

the GST, input tax credit or adjustment (as the case requires) is attributable to the first tax period applying to the amalgamated company that ends after the amalgamation.

(2)    
If:

(a) immediately before * amalgamation , an * amalgamating company * accounted on a cash basis ; and

(b) GST payable by the company on a * taxable supply , an input tax credit to which the company was entitled for a * creditable acquisition , or an * adjustment that the company had, was only to some extent attributable, before the amalgamation, to any of the tax periods applying to the company; and

(c) the GST, input tax credit or adjustment would have been solely attributable to such a tax period if the company had not accounted on a cash basis during that period; and

(d) immediately after the amalgamation, the * amalgamated company does not account on a cash basis;

the GST, input tax credit or adjustment (as the case requires) is attributable to the first tax period applying to the amalgamated company that ends after the amalgamation, but only to the extent that it was not attributable to any of the tax periods applying to the amalgamating company.

(3)    
This section has effect despite sections 29-5 , 29-10 and 29-20 (which are about attributing GST on supplies, input tax credits for acquisitions, and adjustments).