Document ID: chunk:federal_register_of_legislation:C2006C00496:clause:4_8:p2
Version: federal_register_of_legislation:C2006C00496
Segment Type: clause
Provision Reference: sch 4 cl 8 (pt 2/3)
Character Range: 34787–37369

an amount, as a commission or similar payment, to the agent for the agent's supply to the third party:
 (a) for the purpose of paragraph (2)(b), the amount payable by the agent to the principal is taken to be reduced by the amount the principal pays, or is liable to pay, to the agent; and
 (b) the supply by the agent to the principal, to which the principal's payment or liability relates, is not a *taxable supply.

 (4) However, this section no longer applies, and is taken never to have applied, if the principal issues to the third party, in the principal's own name, any *tax invoice or *adjustment note relating to the supply.

 (5) This section has effect despite section 9‑5 (which is about what are taxable supplies), section 9‑75 (which is about the value of taxable supplies) and section 11‑5 (which is about what are creditable acquisitions).

153‑60  The effect of these arrangements on acquisitions

 (1) An acquisition that the principal makes from a third party through the agent is taken to be a *creditable acquisition made by the agent from the third party, and not by the principal, if:
 (a) the acquisition is of a kind to which the arrangement applies; and
 (b) the acquisition is made in accordance with the arrangement; and
 (c) both the principal and the agent are *registered.

 (2) In addition, the agent is taken to make a supply that is a *taxable supply to the principal. This supply is taken:
 (a) to be a supply of the same thing as is acquired in the *creditable acquisition (the agent's acquisition) that the agent is taken to make; and
 (b) to have a *value equal to 10/11 of the amount that is payable to the agent by the principal in respect of the agent's acquisition.
The principal is taken to make a corresponding acquisition from the agent, and the acquisition is taken to be a creditable acquisition if, apart from this section, the principal's acquisition from the third party would have been a creditable acquisition.

 (3) If the principal pays, or is liable to pay, an amount, as a commission or similar payment, to the agent for the agent's acquisition from the third party:
 (a) for the purpose of paragraph (2)(b), the amount payable by the principal to the agent is taken to be increased by the amount the principal pays, or is liable to pay, to the agent; and
 (b) the supply by the agent to the principal, to which the principal's payment or liability relates, is not a *taxable supply.

 (4) This section has effect despite section 11‑5 (which is about what are creditable acquisitions), section 11‑10 (which is about what are