Groups may use an ITXSA for other purposes, provided these do not:
- affect the reasonableness of the allocation under the ITXSA
- prejudice the rights of the Commissioner to recover the debt.
For instance, the following internal arrangements are not relevant to determining whether there has been a 'reasonable allocation', even if they are included in the ITXSA:
- financing of ongoing tax liabilities (even if this requires different contributions from group members than would be ascertained under the 'reasonable allocation' clauses)
- the treatment of refunds received
- the requirements for balancing adjustments between the ITXSA liabilities and other tax liabilities as shown in entities' accounts.
It is anticipated that a group may choose to incorporate the terms of the tax funding or other private contractual arrangements in a separate agreement. Again, these agreements are generally of no concern to the Commissioner, subject to the 'prejudice recovery' provisions in the legislation. That is, while a tax funding or other arrangement may have no bearing on the determination of whether there has been a 'reasonable allocation', if it is designed to frustrate the ability of a member to pay its contribution amount, it would be seen to 'prejudice recovery' under paragraph 444-90(1C)(b) of Schedule 1 to the TAA.