Which input tax credits are permanently blocked under Section 17(5)?

Because the wording and interpretation of "Section 17(5)" differ between jurisdictions and over time, it isn’t possible to publish a universally accurate list of permanently blocked input tax credits here. Instead, use the practical approach below to identify and document which credits are blocked in your situation and prepare the information you’ll need for a professional review.

Practical steps

1. Identify the exact statutory text: Locate the full text of Section 17(5) that applies in your jurisdiction (including any amendments) so you are working from the authoritative source.
2. Check official guidance and notices: Search your tax authority’s guidance, manuals, practice notes or public rulings that interpret Section 17(5). These often list examples and explain application.
3. Review relevant subordinate legislation and regulations: Some blocked inputs may be specified or elaborated in regulations or rules issued under the statute.
4. Search case law and determinations: Look for tribunal or court decisions and published determinations that interpret Section 17(5) or similar provisions—these show how the rules are applied in practice.
5. Map your transactions to the statutory criteria: Make a list of the categories of purchases in your business and test each against the statutory language and guidance to see whether the input tax is excluded or allowed.
6. Document your reasoning: For each category, keep a reference to the statute/guidance/case law used and explain why the input tax is (or is not) blocked. Good documentation supports positions in audits or reviews.
7. Adopt an accounting policy: Using the findings, draft or update an internal policy for how your finance team treats potentially blocked input tax credits and how to record them in the ledger.
8. Train staff and maintain periodic review: Ensure those who code purchases understand the policy and schedule periodic reviews for law or practice changes.

What to prepare before consulting a tax professional

• Exact jurisdiction and citation of Section 17(5) you are asking about.
• Copies/links to official guidance, regulations, and recent relevant rulings.
• A categorized sample of your purchases with supporting invoices and purpose of use.
• Current accounting treatment and any prior positions taken in returns or filings.

Following these steps will help you build a defensible position and get efficient, actionable advice from a tax professional familiar with your jurisdiction.