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-B - Other tax-related transactions  

110-65   Indirect tax sharing agreements - 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

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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