Show download pdf controls
  • Indirect tax sharing agreement – reasonable allocation of indirect tax law liability

    A GST group may have an indirect tax sharing agreement (ITXSA) specifying the amounts each member contributes to the group's indirect tax law liabilities for a particular tax period. The ITXSA may specify:

    • fixed contribution amounts for each contributing member
    • a method of allocation under which contribution amounts are determined.

    Either way, the contribution amounts calculated under the ITXSA must represent a 'reasonable allocation' of liabilities among the group's representative member and contributing members.

    Find out about:

    See also:

      Last modified: 25 May 2017QC 26371