A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  

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  

Subdivision 110-A - Income tax-related transactions  

110-25   Tax sharing agreements - leaving group clear of group liability  

(1)  
A supply made to a * TSA contributing member of a * consolidated group or a * MEC group is not a * taxable supply if:


(a) the supply is a release from an obligation relating to a * contribution amount in relation to a * group liability of the * head company of the group; and

Example:

The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined.


(b) the TSA contributing member has, for the purposes of subsection 721-30(3) of the * ITAA 1997 , left the group clear of the group liability.

Note:

See section 721-35 of the ITAA 1997 for when a TSA contributing member has left a group clear of the group liability.

(2)  
This section has effect despite section 9-5 (which is about what are taxable supplies).




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