60. Adjustment of tax deductible in relation to unpaid consideration
(1) Part 8 of the Principal Act is amended in Chapter 1 by inserting the following section after section 62:
(1) Subject to subsection (4), where -
(a) an accountable person has, during a taxable period (referred to in this section as the 'initial period'), deducted tax in accordance with subsection (2) or (2A) of section 59, and
(b) the consideration, or part thereof, due to the supplier of the goods or services has not been paid by that accountable person on or before the last day of the third taxable period following the initial period,
that accountable person shall reduce the amount of tax deductible by him or her in accordance with subsection (2).
(2) Where subsection (1) applies, the accountable person shall reduce the amount of tax deductible by him or her, in the third taxable period following the initial period, by an amount calculated in accordance with the following formula, subject to any apportionment arising in accordance with section 61:
(A-B) x C
where -
A is the total consideration (exclusive of value-added tax),
B is the consideration or part thereof (exclusive of value-added tax) that has been paid, and