Document ID: chunk:federal_register_of_legislation:C2025C00126:section:5:p30
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 5 (pt 30/33)
Character Range: 604907–607725

the parties to the agreement will become members of the group when it does come into existence; and
 (d) the agreement complies with the requirements (if any) set out in the regulations.
 (2) The supply is not a *taxable supply to the extent that it relates to the fact that the agreement deals with the distribution mentioned in paragraph (1)(b).
 (3) Without limiting paragraph (1)(b), the agreement deals with the distribution mentioned in that paragraph if it includes one or more of the following kinds of provisions:
 (a) provisions for *members or former members of the group to contribute towards payment of *tax‑related liabilities mentioned in subsection 721‑10(2) of the *ITAA 1997 of the *head company of the group;
 (b) provisions for payments to be made to a member or former member of the group in recognition of activities or attributes of that member that have the effect of reducing the amount of those liabilities.
 (4) This section has effect despite section 9‑5 (which is about what are taxable supplies).

Subdivision 110‑B—Other tax‑related transactions

110‑60  Indirect tax sharing agreements—entering into agreement etc.
 (1) This section applies if:
 (a) an entity makes a supply because it enters into or becomes a party to an agreement; and
 (b) the agreement:
 (i) satisfies the requirements of subsections 444‑90(1A) to (1E) in Schedule 1 to the Taxation Administration Act 1953 in relation to an indirect tax amount referred to in subsection 444‑90(1) in that Schedule; or
 (ii) satisfies the requirements of subsections 444‑80(1A) to (1E) in Schedule 1 to the Taxation Administration Act 1953 in relation to an indirect tax amount referred to in subsection 444‑80(1) in that Schedule.
 (2) The supply is not a *taxable supply to the extent that it relates to the fact that the agreement satisfies those requirements.
 (3) This section has effect despite section 9‑5 (which is about what are taxable supplies).

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