Indirect Tax Legislation Amendment Act 2000 (92 of 2000)

Schedule 5   Financial supplies

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

5A   After Division 70

Insert:

Division 71 - Financial supplies (acquisitions and importations to provide fringe benefits)

71-1 What this Division is about

Financial suppliers may not be entitled to input tax credits for acquisitions or importations they make to provide fringe benefits to their employees.

Note: Under the Fringe Benefits Tax Assessment Act 1986, a lower rate of fringe benefits tax is payable for providing fringe benefits without entitlement to input tax credits.

71-5 Acquisitions by financial suppliers to provide fringe benefits

(1) An acquisition that solely or partly relates to making *financial supplies is not a *creditable acquisition to the extent that the acquisition would (but for this section) be a *GST-creditable benefit on the provision of which *fringe benefits tax is payable.

(2) However, this section applies only if you *exceed the financial acquisitions threshold.

(3) This section has effect despite section 11-5 (which is about what is a creditable acquisition).

71-10 Importations by financial suppliers to provide fringe benefits

(1) An importation that solely or partly relates to making *financial supplies is not a *creditable importation to the extent that the importation would (but for this section) be a *GST-creditable benefit on the provision of which *fringe benefits tax is payable.

(2) However, this section applies only if you *exceed the financial acquisitions threshold.

(3) This section has effect despite section 15-5 (which is about what is a creditable importation).