At present, the GST Act allows contracting authorities and ordinary agents to enter into an optional agreement (referred to as the „Subdivision Agreement 153 B“) which allows the agent to be treated for GST purposes as if the agent were the agent of the self-employed. These agreements change the way GST is treated between the agent and the third party and between the client and the agent. These agreements aim to simplify the way contracting authorities and agents were accounting for GST and to reduce compliance costs. However, in accordance with the legislation in force, these provisions apply only if the agent is a representative of the common law of the contracting authority. These agreements do not cover all co-insurance possibilities. You should seek advice based on your specific co-insurance agreement. This is only the first round of the proposed amendments – more bills are expected in the near future. It will be important to stay informed of the proposed changes and ensure that your business is prepared for them. The proposed amendments will affect the ability of taxable persons to claim GST refunds and will also provide some additional flexibility in the accounting of GST in commercial transactions.
The proposed amendments are intended to fill some gaps in the interaction between the associated provisions and the rest of the GST Act. Concretely: Rob`s Cover settles the fee through an acquisition of services for $495 and a cash compensation of $1,925. . . .