Federal Register of Legislation - Australian Government

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Determinations/Taxation as made
This determination waives the requirement to hold a tax invoice before being able to attribute an input tax credit (or any part of it) to a tax period for Custom Service Leasing customers provided that certain information requirements are met.
Administered by: Treasury
Registered 29 Mar 2017
Tabling HistoryDate
Tabled HR30-Mar-2017
Tabled Senate09-May-2017
Date of repeal 15 Aug 2017
Repealed by Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) Legislative Instrument 2017

Explanatory Statement

 

Goods and Services Tax: Waiver of Tax Invoice Requirement Determination 2017 – customers of Custom Service Leasing Pty Ltd

 

 

General outline of determination

  1. This determination is made under subsection 29-25(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

2.   Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws) the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

  1. This determination allows Custom Service Leasing customers to attribute input tax credits without holding a tax invoice in certain circumstances outlined in the determination.
  2. This determination is a legislative instrument for the purposes of the Legislation Act 2003.

Date of effect

5.    This determination commences on the day after its registration on the Federal Register of Legislation.

What this determination is about

  1. The basic attribution rules in subsection 29-10(3) of the GST Act require an entity to hold a tax invoice before being able to attribute an input tax credit or any part of the input tax credit to a tax period.
  2. Subsection 29-10(3) of the GST Act also provides that the requirement to hold a tax invoice does not apply in circumstances of a kind determined in writing by the Commissioner.
  3. This determination specifies circumstances in which Custom Service Leasing customers are not required to hold a tax invoice.

What is the effect of this determination?

  1. The effect of this determination is that a Custom Service Leasing customer will be able to attribute their input tax credit to a tax period without holding a tax invoice provided the customer holds an expense report issued by Custom Service Leasing Pty Ltd that contains the information as set out in this determination.
  2. This determination reduces compliance costs for Custom Service Leasing customers that do not hold tax invoices for creditable acquisitions as set out in subparagraph 5(1) of this determination.
  3. Compliance Cost Impact: Minor – there will be no or minimal impact for both implementation and ongoing compliance costs. This determination is minor or machinery in nature.

Background

12.  This determination repeals and replaces determination A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 4) 2000 – customers of GE Capital Fleet Services Australia Pty Ltd – F2006B11624 (previous determination), registered on 24 November 2006.

13.  This determination is substantially the same as the previous determination that it replaces except that references to ‘GE Capital Fleet Services Australia Pty Ltd’ have been replaced by references to ‘Custom Service Leasing Pty Ltd’ due to a change in the name of the company. An entity that satisfied the requirements of the previous determination will satisfy the requirements of this determination.

Consultation:

14.  Subsection 17(1) of the Legislation Act 2003 requires, before the making of a determination, that the rule-maker is satisfied that appropriate and reasonably practicable consultation has been undertaken.

15.  Broad consultation has been undertaken. The draft determination and draft explanatory statement were published on the ATO Legal database at ato.gov.au seeking feedback and comments for a period of two weeks. Notice of the draft determination was also published to ato.gov.au and subscription alerts issued. Tax professionals and tax associations regularly review both the Legal database and ato.gov.au and further promulgate advice of new drafts issued in their internal news bulletins. The major legal publishers also publish news of the drafts in their key tax alerting services - such as the Weekly Tax Bulletin (published by Thomson Reuters Australia) and Tax Tracker and Tax Week (published by CCH Australia).  Additionally, draft determinations and draft explanatory statements have been published on the ATO Consultation Hub.  Links to these drafts were published in newsletters such as the Taxation News (Chartered Accountants Australia and New Zealand) weekly bulletin. No comments have been received to date.


Legislative references:


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

Acts Interpretation Act 1901

Legislation Act 2003

Human Rights (Parliamentary Scrutiny) Act 2011

Statement of Compatibility with Human Rights

 

This statement is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Goods and Services Tax: Waiver of Tax Invoice Requirement Determination 2017 – customers of Custom Service Leasing Pty Ltd


The determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.


Overview of the Determination

 

The determination waives the requirement in subsection 29-10(3) of the GST Act to hold a tax invoice before being able to attribute an input tax credit (or any part of it) to a tax period for Custom Service Leasing customers provided that certain information requirements are met.

 

Human rights implications

 

The Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

 

The Legislative Instrument is compatible with human rights as it does not raise any human rights issues.