Goods and Services Tax Advice

GSTA TPP 075W

Goods and services tax: Is an Australian insurance broker entitled to a Division 78 decreasing adjustment when it is acting as agent for a foreign insurance company?

• Please note that the PDF version is the authorised version of this withdrawal notice.
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Notice of Withdrawal

Goods and Services Tax Advice GSTA TPP 075 is withdrawn with effect from today.

1. GSTA TPP 075 explains that an Australian entity acting as agent for a foreign insurance company is entitled to a decreasing adjustment under Division 78 of the A New Tax System (Goods and Services) Tax Act 1999 (GST Act) for GST paid in relation to settlement amounts paid to non-resident clients who are not entitled to a full input tax credit.

2. GSTA TPP 075 is withdrawn because it is a duplication of existing ATO views.

3. The Commissioner's view regarding the GST treatment of agency relationships is found in Goods and Services Tax Ruling GSTR 2000/37 Goods and Services Tax: agency relationships and the application of the law. In particular, paragraphs 26 and 104 of GSTR 2000/37 consider the situation where there is a non-resident principal.

4. The Commissioner's view regarding insurance settlements is contained in Goods and Services Tax Ruling GSTR 2006/10 Goods and Services Tax: insurance settlements and entitlement to input tax credits. Paragraphs 19 to 21, 29 to 30 and 33 to 35 of this ruling include relevant discussion about decreasing adjustments under Division 78 of the GST Act.

Commissioner of Taxation
9 July 2014

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Not previously issued as a draft

References

ATO references:
NO 1-5K1RNM9

Related Rulings/Determinations:

TR 2006/10
GSTR 2006/10

Subject References:
insurance
agency
non-resident
decreasing adjustment
input tax credit

Legislative References:
ANTS(GST)A 1999 57-15
ANTS(GST)A 1999 78-10
ANTS(GST)A 1999 78-15
TAA 1953 Sch 1 Div 358