A New Tax System (Goods and Services Tax) Act 1999
Chapter 4
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The special rules
Part 4-2
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Special rules mainly about supplies and acquisitions
Subdivision 110-B
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Other tax-related transactions
110-65
Indirect tax sharing agreements
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leaving GST group or GST joint venture clear of liability
(1)
A supply made to a contributing member (within the meaning of subsection 444-90(1A) in Schedule 1 to the Taxation Administration Act 1953 ) of a * GST group is not a * taxable supply if:
(a) the supply is a release from an obligation relating to a contribution amount (within the meaning of that subsection) relating to liabilities of the * representative member of the group that are referred to in that subsection; and
(b) the contributing member leaves the group in circumstances in which subsection 444-90(1B) in that Schedule applies to the contributing member.
(2)
A supply made to a contributing participant (within the meaning of subsection 444-80(1A) in Schedule 1 to the Taxation Administration Act 1953 ) of a * GST joint venture is not a * taxable supply if:
(a) the supply is a release from an obligation relating to a contribution amount (within the meaning of that subsection) relating to liabilities of the * joint venture operator of the joint venture that are referred to in that subsection; and
(b) the contributing participant leaves the joint venture in circumstances in which subsection 444-80(1B) in that Schedule applies to the contributing participant.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies).
Note:
The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.
Division 110 - Tax-related transactions
View history note
Hide history noteA supply made to a contributing member (within the meaning of subsection 444-90(1A) in Schedule 1 to the Taxation Administration Act 1953 ) of a * GST group is not a * taxable supply if:
(a) the supply is a release from an obligation relating to a contribution amount (within the meaning of that subsection) relating to liabilities of the * representative member of the group that are referred to in that subsection; and
Example:
The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined.
(b) the contributing member leaves the group in circumstances in which subsection 444-90(1B) in that Schedule applies to the contributing member.
(2)
A supply made to a contributing participant (within the meaning of subsection 444-80(1A) in Schedule 1 to the Taxation Administration Act 1953 ) of a * GST joint venture is not a * taxable supply if:
(a) the supply is a release from an obligation relating to a contribution amount (within the meaning of that subsection) relating to liabilities of the * joint venture operator of the joint venture that are referred to in that subsection; and
Example:
The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined.
(b) the contributing participant leaves the joint venture in circumstances in which subsection 444-80(1B) in that Schedule applies to the contributing participant.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies).
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