Commonwealth Consolidated Acts

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