A New Tax System (Goods and Services Tax) Waiver of Adjustment Note Requirement Determination (No. 3) 2001 - Corporate Purchasing Account Holder of American Express International Inc.

Administered by Department of the Treasury

Legislation au F2006B11629 Not in force Legislative Instrument

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COMMONWEALTH OF AUSTRALIA

 

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999

 

DETERMINATION

 

Under subsection 29-20(3) of the A New Tax System (Goods and Services Tax) Act 1999, I make the following determination:

 

Citation

  1. This determination is the A New Tax System (Goods and Services Tax) Waiver of Adjustment Note Requirement Determination (No.  3) 2001 – Corporate Purchasing Account Holder of AMERICAN EXPRESS INTERNATIONAL INC. 

 

Commencement

2. This determination commences on the date the A New Tax System (Goods and Services Tax) Act 1999 commenced.

 

Circumstances where the requirement for an adjustment note does not apply

3.                  The circumstance set out in the following paragraphs is the circumstance of a kind in which the requirement for an adjustment note under subsection 29-20(3) of the Act does not apply.

4.                  A Corporate Purchasing Account Holder of American Express International Inc. will not be required to hold an adjustment note for a decreasing adjustment arising from an adjustment event relating to a creditable acquisition purchased on the Corporate Purchasing Account in order to attribute to a tax period an adjustment to an input tax credit previously attributed on the acquisition, provided that at the time the Corporate Purchasing Account Holder gives its GST return/Business Activity Statement (“BAS”) for the tax period to the Commissioner:

(a)   The Corporate Purchasing Account Holder holds a Corporate Purchasing Account Statement produced by American Express International Inc. that includes the following details:

(i)                  The Corporate Purchasing Account Holder’s name;

(ii)                The name(s) of the person(s) or department(s) who uses the Corporate Purchasing Account to purchase the creditable acquisition(s) to which the adjustment relates;

(iii)   The Corporate Purchasing Account Holder’s Australian Business Number (‘ABN’) or address; and

(iv)    For each acquisition for which the Corporate Purchasing Account Holder may adjust the amount of input tax credit previously attributed, the Corporate Purchasing Account Statement has:

  • the date the Corporate Purchasing Account Holder facilitated the adjustment;
  • the supplier’s name;
  • the supplier’s ABN;
  • the supplier’s Branch Registration Number (where applicable);
  • the difference between the price of the supply or supplies before the adjustment event and the new price of the supply or supplies subsequent to the adjustment being made;
  • a brief explanation of the reason for the adjustment, for example, "discount", "refund", "rebate", "return" or a code by which the reason is readily ascertained, such as REF for a refund;
  • the amount of the adjustment to the GST payable or a statement to the effect that the difference in the price of the taxable supply or supplies includes GST;

(b)   The Corporate Purchasing Account Holder has an effectively regulated corporate policy for making adjustments for expenditure on the Corporate Purchasing Account that is of a private or domestic nature and was not made in connection with carrying on the Corporate Purchasing Account Holder’s enterprise;

(c)   The Corporate Purchasing Account Holder has supplementary documentation supporting each adjustment on the Corporate Purchasing Account Statement that has a private or domestic component and the documentary evidence clearly identifies the creditable and non-creditable components of the adjustment; and

(d)   American Express International Inc. meets the conditions set out in paragraph 5 and 6 below.

5.              American Express International Inc. must provide the date each adjustment on the statement was made.

6.              Where all the information required on the statement is not provided by the merchant to American Express International Inc., the latter may, until 30 June 2004, separately obtain the supplier’s ABN and GST registration status and then calculate the amount of GST on the adjustment provided American Express International Inc.:

(a)   has obtained a signed statement from each merchant that states:

(i)                  the merchant’s ABN and Branch Registration Number (where applicable);

(ii)     whether or not the merchant is registered for GST;

(iii)   the type of supply or supplies (i.e., taxable, GST-free and/or input taxed) the merchant provides;

(iv)    where the merchant makes only taxable supplies, whether or not the GST is calculated at 1/11 of the price for all taxable supplies the merchant makes; and

(v)      provides American Express International Inc. with an undertaking that it will be notified -

  • when the merchant ceases to be registered for GST; or
  • when the merchant ceases to make only taxable supplies where the GST is calculated at 1/11 of the price;

(b)   retains the signed statement for at least 5 years after the merchant ceases its association with American Express International Inc.;

(c)   clearly identifies each adjustment in the statement that may be a GST-free, input taxed or mixed supply;

(d)   clearly identifies each adjustment where GST may not be 1/11 of the price;

(e)   where an adjustment has been identified as being a supply that may be a GST-free, input taxed or a supply where GST may not be 1/11 of the price, advises the Corporate Purchasing Account Holder to obtain an adjustment note before attributing an input tax credit to a tax period; and

(f)    where American Express International Inc. has obtained information that the merchant is not registered, or ceases to be registered for GST, American Express International Inc. must not calculate an amount of GST for adjustments from that merchant.  Instead, American Express International Inc. must state that the amount of GST included in the adjustment is $nil.

 

Situations where an adjustment note is still required

7. The Corporate Purchasing Account Holder will still need to obtain an adjustment note before attributing an adjustment to a tax period for an adjustment on the Corporate Purchasing Account Statement where:

(a)   the Corporate Purchasing Account Statement indicates that the adjustment relates to a supply that may be a mixed supply or a taxable supply where GST is not 1/11 of the price; or

(b)   where there is an error on the Corporate Purchasing Account Statement in relation to the adjustment.

 

Definitions

8. The following expressions are defined for the purposes of this determination:

the Act means the A New Tax System (Goods and Services Tax) Act 1999.

The person(s) who uses the Corporate Purchasing Account includes a partner, sole trader, contractor, director or employee of an entity. 

Corporate Purchasing Account Statement is a statement of liability that is issued by American Express International Inc. to one of its clients.

Corporate Purchasing Account is an account that is held by and in the name of an entity and is used to purchase goods and services for commercial purposes.

Corporate Purchasing Account Holder is the registered entity that holds a Corporate Purchasing Account with American Express International Inc.

Mixed supply is a supply of one or more taxable supplies and any one of the following supplies:

  • a supply that is GST-free or input taxed;
  • a supply that was made before 1 July 2000.

Other expressions in this determination have the same meaning as in the Act.

 

Dated this 6th day of December 2001.

 

 

Signed by Anthony Long

Assistant Commissioner

Goods and Services Tax (Financial Supplies)

Delegate of the Commissioner

 

Overview

The A New Tax System (Goods and Services Tax) Act 1999 was enacted to establish a comprehensive GST regime in Australia, replacing a variety of previous indirect taxes with a single, broad-based consumption tax. This legislation aimed to address the fragmented nature of the previous tax system and streamline the taxation process. The Act was enacted by the Parliament of Australia with the policy objective of creating a simpler, more efficient tax system that would support economic growth and fairness. The A New Tax System (Goods and Services Tax) Waiver of Adjustment Note Requirement Determination (No. 3) 2001, made under the authority of the Act, provides specific relief for corporate purchasing account holders of American Express International Inc. by waiving certain requirements for adjustment notes under particular conditions, facilitating more straightforward compliance for these entities. This determination helps ensure that businesses can manage their GST obligations more effectively, particularly in the context of adjustments related to creditable acquisitions.

Scope and Application

The A New Tax System (Goods and Services Tax) Waiver of Adjustment Note Requirement Determination (No. 3) 2001 pertains to entities using a Corporate Purchasing Account with American Express International Inc. This legislation specifically exempts Corporate Purchasing Account Holders from the requirement to hold an adjustment note for decreasing adjustments relating to creditable acquisitions on their corporate accounts, provided certain conditions are met. These conditions include holding a Corporate Purchasing Account Statement with specific details, having an effectively regulated corporate policy for private or domestic adjustments, and possessing supplementary documentation for such adjustments. The exemption applies to adjustments provided that American Express International Inc. meets certain conditions, such as obtaining and retaining signed statements from merchants and clearly identifying adjustments on the statement. The Act applies to Commonwealth entities and has been in force since the commencement of the A New Tax System (Goods and Services Tax) Act 1999. However, an adjustment note is still required for mixed supplies or taxable supplies where GST is not 1/11 of the price, and in cases of errors on the Corporate Purchasing Account Statement.

Key Provisions

The A New Tax System (Goods and Services Tax) Waiver of Adjustment Note Requirement Determination (No. 3) 2001, made under subsection 29-20(3) of the A New Tax System (Goods and Services Tax) Act 1999, specifies circumstances under which a Corporate Purchasing Account Holder of American Express International Inc. is exempt from holding an adjustment note for certain creditable acquisitions. Section 4 of the determination outlines the specific conditions for this waiver. Essentially, the Corporate Purchasing Account Holder will not need an adjustment note if, at the time of submitting their GST return or Business Activity Statement (BAS) to the Commissioner, they hold a Corporate Purchasing Account Statement from American Express International Inc. that includes specific details about the account holder, the nature of the purchases, the adjustment event, and the supplier information (Section 4(a)). Additionally, the account holder must have a corporate policy for making adjustments and supplementary documentation supporting each adjustment, particularly those with a private or domestic component (Section 4(b) and (c)). The obligations under this determination include the requirement for the Corporate Purchasing Account Holder to ensure their Corporate Purchasing Account Statement includes all necessary details about the adjustment event and the nature of the purchase (Section 4(a)). They must also maintain an effectively regulated corporate policy for making adjustments and possess supplementary documentation that clearly identifies the creditable and non-creditable components of any adjustment with a private or domestic component (Section 4(b) and (c)). American Express International Inc. is mandated to provide specific information on the Corporate Purchasing Account Statement and take additional steps if the necessary information is not provided by the merchant, such as obtaining a signed statement from the merchant and retaining it for at least five years (Section 5 and 6). Failure to comply with the requirements of this determination may result in civil or criminal consequences. Although specific penalties are not detailed in the determination, breaches of the A New Tax System (Goods and Services Tax) Act 1999 can generally lead to penalties that include fines and imprisonment, depending on the nature and severity of the breach. The Commissioner of Taxation is empowered to take enforcement actions against entities that fail to comply with the obligations under the Act, which can include pursuing legal action to enforce compliance and imposing financial penalties. The maximum penalties for certain offences under the Act can be substantial, reflecting the seriousness with which the Australian Taxation Office treats non-compliance with GST regulations.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.