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

Chapter 4 - The special rules  

Part 4-1 - Special rules mainly about particular ways entities are organised  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 so far as that Part deals with liability for GST and entitlement to input tax credits, but the special rules also affect other aspects of Part 2-2 and the other Parts of Chapter 2 .

Division 48 - GST groups  

Subdivision 48-A - Formation and membership of GST groups  

48-15   Relationship of companies and non-companies in a GST group  

(1)  
A * company that is a member of a * GST group , or a proposed GST group, satisfies this section if:


(a) a * partnership , trust or individual that is a member of the GST group or proposed GST group would, if it were another company, have * at least a 90% stake in that company; or


(b) the company has only one member, and that member:


(i) is a partner in a partnership that is a member of the GST group or proposed GST group; or

(ii) is an individual that is a member of the GST group or proposed GST group; or

(iii) is a * family member of that partner or individual; or


(c) the company has more than one member, each of whom is:


(i) a partner in the same partnership that is a member of the GST group or proposed GST group; or

(ii) a family member of any such partner;
and one of the following applies:

(iii) at least 2 of the partners are members of the company;

(iv) one of the partners is a member of the company, and at least one other member of the company is a family member of a different partner;

(v) none of the partners is a member of the company, and the members of the company are not all family members of the same partner and no other partner; or


(d) the company has more than one member, each of whom is:


(i) an individual who is a member of the GST group or proposed GST group; or

(ii) a family member of that individual; or


(e) a trust is a member of the GST group or proposed GST group, and distributions of income or capital of the trust are not made except to an entity that is:


(i) the company; or

(ii) any other company that is a member of the GST group or proposed GST group; or

(iia) a member of, or a family member of a member of, any company referred to in subparagraph (i) or (ii) that is a company to which subsection (1A) applies; or

(iii) an * endorsed charity or a * gift-deductible entity .

(1AA)  
(Repealed by No 169 of 2012)

(1A)  
This subsection applies to a company if:


(a) the company has only one member; or


(b) the company has more than one member, and:


(i) at least 2 of the members are beneficiaries of the trust in question (either directly, or indirectly through one or more interposed trusts); or

(ii) one of the members is such a beneficiary, and at least one other such beneficiary is a * family member of a different member of the company; or

(iii) none of the members is such a beneficiary, and those family members (of the members of the company) who are such beneficiaries are not all family members of the same member of the company and no other member.

(2)  
A person is a family member of an individual if the individual ' s family, within the meaning of section 272-95 of Schedule 2F to the * ITAA 1936 , includes that person. There are no family members of an entity that is not an individual.


 

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