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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 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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