Division 17 – Net amounts and adjustments
Commissioner of Taxation v Multiflex Pty Ltd  FCAFC 142 – at : the amount “worked out” on the approved form is treated as the entity’s net amount for a period but s 17-15(2) also underscores the primacy of the amount so worked out by providing that the section has effect despite s 17-5 – s 17-15 and s 35-5 of the TAA and s 105-15 of Schedule 1 to the TAA operate harmoniously so as to provide for a system of taxation in which, generally speaking and in the first instance, the duty of assessing (“working out”) the liability to make a payment or, as the case may be, the entitlement to receive a refund is placed on the entity concerned, not on the Commissioner – at : if the Commissioner subsequently issues and assessment, the net amount so assessed necessarily supersedes whatever amount the entity earlier worked out on its approved form. Subject to the outcome of any subsequent objection or later appeal or review proceeding, the entity’s net amount will be the amount as assessed by the Commissioner.
Division 19 – Adjustment events
Subdivision 19A – Adjustment events
The Electrical Goods Importer and Commissioner of Taxation  AATA 854 – cash back rebate paid by Applicant (wholesaler) to consumer does not change the consideration for the taxable supply by the retailer to the consumer – there is no adjustment event
TAB Ltd v Commissioner of Taxation  NSWSC 552 – whether the refund of bets paid to punters, where the event is abandoned or there is no outcome, and the refund is paid in a subsequent tax period constitutes an adjustment event – whether there is a change in the consideration for the gambling supply (the bet) but reducing it to nil or the gambling supply ceases to be a taxable supply
Inventive Tax Strategies Ltd (in liq) v Revenue and Customs  UKUT 221 – Supplier receiving payment – subsequently coming subject to an unconditional obligation to repay – supplier went into liquidation and credit notes issued to customers but actual repayment not made – whether reduction in consideration for taxable supply – no – appeal dismissed
Rulings and Determinations
GSTD 2014/3 – Goods and services tax: do payments made by a vendor to a purchaser of real property when the rent received falls below a rental yield guaranteed by the vendor give rise to an adjustment event for the purposes of Division 19 of the GST Act?
Subdivision 19B – Adjustments for supplies
Subdivision 19C – Adjustments for acquisitions
Division 21 – Bad debts
Rulings and Determinations
Apple Computer Australia Pty Ltd v Mekrizis  NSWSC 126 – at  – an increasing adjustment is not restricted to recovery from the debtor, but extends to recovery from a guarantor or any other source.
Regency Factors Ltd v Revenue & Customs  UKFTT 144 – bad debt relief (BDR) – when consideration for supply of services received – when consideration due and payable – whether amounts outstanding 6 months after time of supply – whether claims for BDR in time – whether procedural requirements for BDR met including maintenance of refund of bad debts account and writing off of debts to that account – appeals dismissed.
Thorne Motor Company v Revenue and Customs  UKFTT 605 – bad debt relief – time limit for making claim – cash accounting – whether adopted – appeal dismissed
Times Right Marketing Ltd (in Liquidation) v Revenue & Customs  UKVAT V20611 – VALUE ADDED TAX – bad debt relief – returns rendered but all output tax not paid – claim for bad debt relief limited to the amount of tax paid (by way of credit for input tax) – whether relief available even though tax paid was not related to specific invoices – yes –appeal allowed
Berck Ltd v Revenue & Customs  UKVAT V20051 – BAD DEBT RELIEF — debt written off on management buyout — was there consideration for the write off — yes — is appellant entitled to bad debt relief — no — appeal dismissed