Examples to illustrate that guarantees and indemnities are now considered as separate interests
18 Feb 2013
A New Tax System (Goods and Services Tax) Amendment Regulation 2013 (No 2) was made on 14 February 2013 and registered on the Federal Register of Legislative Instruments on 15 February 2013 as Select Legislative Instrument 2013 No 7.
The following is extracted from the Explanatory Statement.
The purpose of the Regulation is to amend the A New Tax System (Goods and Services Tax) Regulations 1999 (the Regulations) to ensure consistency within the Regulations by updating the examples for guarantees and indemnities to reflect that they are now considered as separate interests.
The A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No 1) made a number of amendments to the GST financial supply provisions in the Regulations that commenced on 1 July 2012. These amendments included the listing of guarantees and indemnities as separate items in subregulation 40-5.09(3) of the Regulations. However, the relevant examples for guarantees and indemnities contained in Part 5 in Schedule 7 to the Regulations were not also amended to reflect these changes.
The amending Regulation separates the examples for guarantees and indemnities by moving the example regarding indemnities from Part 5 in Schedule 7 to the GST Regulations to a new Part (Part 5A) in the Schedule.
For a copy of the Explanatory Statement, click on the Explanatory Statement tab.