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 84 - Offshore supplies  

Subdivision 84-A - Offshore supplies that are taxable supplies, and " reverse charged " , under this Subdivision  

84-15   Transfers etc. between branches of the same entity  

(1)  
For the purposes of section 84-5 , if an entity:


(a) * carries on an * enterprise in the indirect tax zone; and


(b) also carries on that or another enterprise outside the indirect tax zone;

then:


(c) the transfer of anything to the enterprise in the indirect tax zone from the enterprise outside the indirect tax zone; or


(d) the doing of anything for the enterprise in the indirect tax zone by the enterprise outside the indirect tax zone;

is taken to be a supply that is not * connected with the indirect tax zone .

Example:

An entity acquires, through a place of business it has overseas, the right to exploit a particular copyright in the indirect tax zone. That right is then transferred to a place of business that the entity has in the indirect tax zone.

Under this section, the transfer is taken to be a supply that is not connected with the indirect tax zone and, if the other requirements of section 84-5 are satisfied, the transfer is a taxable supply.

(2)  


If the transfer is a transfer of the services of an employee, this section does not apply to the transfer to the extent that any payments that:


(a) are made from the * enterprise in the indirect tax zone to the enterprise outside the indirect tax zone; and


(b) relate to the transfer;

would be * withholding payments if they were payments from the enterprise in the indirect tax zone to the employee.


 

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