Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 2   Consolidation etc.

Part 10   Liability for payment of tax where head company fails to pay on time

Income Tax Assessment Act 1997

60   After subsection 721-25(1)


(1A) The requirement in paragraph (1)(c) is taken to be satisfied if:

(a) the group liability is a *tax-related liability mentioned in item 25 of the table in subsection 721-10(2) in relation to an income year; and

(b) before, at or after the head company's due time, the *head company of the group became entitled to either or both of the following:

(i) a credit under section 45-30 in Schedule 1 to the Taxation Administration Act 1953 for that income year;

(ii) a credit under section 45-865 in Schedule 1 to that Act for that income year; and

(c) just before the head company's due time, the contribution amounts for each of the TSA contributing members in relation to the group liability, as determined under the agreement, represented a reasonable allocation among the head company and the TSA contributing members of the difference between:

(i) the total amount of the group liability; and

(ii) the amount of the credit, or the sum of the credits, mentioned in paragraph (b).

(1B) Despite subsections (1) and (1A), the group liability is not covered by a tax sharing agreement for the purposes of this Division if, apart from this subsection, the requirements in those subsections in relation to the group liability would be satisfied in relation to 2 or more agreements.