Document ID: chunk:federal_register_of_legislation:C2014A00034:clause:2_10:p1
Version: federal_register_of_legislation:C2014A00034
Segment Type: clause
Provision Reference: sch 2 cl 10 (pt 1/3)
Character Range: 7300–9991

10  At the end of Part 4‑4
Add:

Division 142—Excess GST

Table of Subdivisions
142‑A Excess GST unrelated to adjustments
142‑B GST related to cancelled supplies
142‑C Passed‑on GST

142‑1  What this Division is about
      Excess GST is not to be refunded if this would give an entity a windfall gain.
Note: Refunding excess GST to a supplier will give it a windfall gain if it has already passed on the excess GST in the price of the supply (and not reimbursed the recipient).

Subdivision 142‑A—Excess GST unrelated to adjustments

142‑5  When this Subdivision applies
 (1) This Subdivision applies if, after disregarding any amounts covered by subsection (2), your *assessed net amount for a tax period takes into account an amount of GST exceeding that which is payable.
Note: This Subdivision applies whether or not you have paid, or been refunded, the assessed net amount.
Example: Sunny Co mistakenly reports a negative net amount of $4,000 made up of GST of $10,000 less input tax credits of $14,000. In fact, Sunny Co's GST should have been $8,000 making its negative net amount $6,000. Sunny Co has excess GST of $2,000.
 (2) Disregard the following amounts:
 (a) an amount of GST that was correctly payable and attributable to the tax period, but which later becomes the subject of a *decreasing adjustment;
 (b) an amount of GST that is payable, but is correctly attributable to a different tax period.

142‑10  Refunding the excess GST
  For the purposes of each *taxation law, so much of the excess from subsection 142‑5(1) (the excess GST) as you have *passed on to another entity is taken to have always been:
 (a) payable; and
 (b) on a *taxable supply;
until you reimburse the other entity for the passed‑on GST.
Note 1: If you reimburse the passed‑on GST so that this section ceases to apply there will be an adjustment event under paragraph 19‑10(1)(b) or (c). You will have a decreasing adjustment (see section 19‑55) and the other entity may have an increasing adjustment (see section 19‑80).
Note 2: Any excess GST you have not passed on will be refunded as described in section 155‑75 in Schedule 1 to the Taxation Administration Act 1953.
Note 3: While this section applies, paragraph 11‑5(b) (about taxable supplies) is satisfied for the corresponding acquisition by the other entity.

142‑15  When section 142‑10 does not apply

Commissioner satisfied it is inappropriate for that section to apply
 (1) Treat section 142‑10 as never having applied to the extent that the Commissioner is satisfied that:
 (a) applying that section would be inconsistent with the principle that excess GST is not to be refunded if this would give an entity a windfall gain; and
 (b)