Private ruling: GST supplies and acquisitions
Date of advice: 3 March 2016
Published: April 2016

Ruling: Q6: Is Entity A entitled to claim full input tax credits for acquisitions that are identified as Separation Interaction Costs?


Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 subsection 9-30(3) | A New Tax System (Goods and Services Tax) Act 1999 section 11-5 | A New Tax System (Goods and Services Tax) Act 1999 section 11-15 | A New Tax System (Goods and Services Tax) Act 1999 section 11-20 | A New Tax System (Goods and Services Tax) Act 1999 subsection 38-190 | A New Tax System (Goods and Services Tax) Act 1999 section 40-5 | A New Tax System (Goods and Services Tax) Act 1999 Division 70 | A New Tax System (Goods and Services Tax) Act 1999 section 70-5(1) | A New Tax System (Goods and Services Tax) Act 1999 Division 189 | A New Tax System (Goods and Services Tax) Act 1999 section 195-1 A New Tax System (Goods and Services Tax) Regulations1999 regulation 40-5.09 | A New Tax System (Goods and Services Tax) Regulations1999 regulation 70-5.02


Subject: GST supplies and acquisitions: The Commissioner has ruled on each of the following questions. | Question 1: Are acquisitions made by Entity A during Phase 1 of Project X for a creditable purpose under section 11-15 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | Question 2: Are acquisitions made by Entity A during Phase 2 of Project X for a creditable purpose under section 11-15 of the GST Act? | Question 3: Where acquisitions made during Phase 3 of Project X directly relate to one of the categories of the Restructure and Completion steps undertaken by Entity A, can Entity A claim input tax credits on the basis of the types of activities in this category? | Question 4: Where acquisitions made during Phase 3 of Project X do not directly relate to one category but relate to all categories indirectly, can Entity A claim input tax credits on the basis of apportioning the acquisitions across the categories? If so, can the proposed apportionment methodology be applied to determine the amount of input tax credits that can be claimed? | Question 5: Are the services provided by Entity B and Entity C during Phase 3 of Project X reduced credit acquisitions?