Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 721 - Liability for payment of tax where head company fails to pay on time  

Tax sharing agreements  

SECTION 721-35  

721-35   When a TSA contributing member has left the group clear of the group liability  

For the purposes of subsection 721-30(3) , a TSA contributing member left the group clear of the group liability if:

(a) the TSA contributing member ceased to be a member of the group at a time (the leaving time ) before the ^* head company's due time; and

(b) the cessation of membership was not part of an arrangement, a purpose of which was to prejudice the recovery by the Commissioner of some or all of the amount of the group liability or liabilities of that kind; and

(c) before the leaving time, the TSA contributing member had paid to the head company:

(i) if the contribution amount for that member in relation to the group liability could be determined before the leaving time - an amount equal and attributable to that amount; or

(ii) otherwise - an amount that is a reasonable estimate of, and attributable to, that amount.