This GST Determination, released on Wed 7.3.2012, outlines the circumstances where a Div 129 adjustment may, or may not, arise for services acquired in relation to a proposed merger and acquisition (M&A) transaction that does not eventuate, or proceeds in a different manner to that contemplated.
The Determination illustrates the application of its conclusions in 3 detailed examples:
(i) the application of advice where the proposed transaction changes;
(ii) the application of advice where the transaction does not eventuate; and
(iii) the application of advice where the advice is subsequently applied for a purpose that is different from what was intended.
The Determination applies both before and after its date of issue. It was issued in draft form as Draft Determination GSTD 2011/D3.
[LTN 45, 7/3]