Correcting the purchase price allocation

Income tax Dates

NOV 30

AIM instalments are due if you file GST monthly and have a March balance date.
JAN 15

AIM instalments are due if you have a March balance date.
JAN 15

Provisional tax payments are due if you have a March balance date and use the standard, estimation or ratio options.

All Income tax dates

In some cases, we may review and propose changes to the purchase price allocation if it is not followed by both parties or does not comply with the purchase price allocation rules.

When we might review the allocation

We may review a purchase price allocation where:

the buyer or seller have not followed an agreed or notified allocation in their income tax return
the buyer and seller have not used the same allocation for income tax purposes
the allocation does not reflect relative market value where required
the allocation does not comply with the tax book value requirements where applicable.

If we find the allocation is wrong

If we determine the allocation is incorrect, we may:

investigate the transaction
determine a different allocation for tax purposes
reassess any GST or income tax returns affected by the allocation (whichever applies).

You need to keep records

You should keep records showing how the allocation was determined, including any valuations or other supporting evidence used.