Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_55:p1
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 55 (pt 1/3)
Character Range: 243638–246573

55                                                                                subsection 45‑235(5) in Schedule 1 to the Taxation Administration Act 1953 (general interest charge on shortfall in annual instalment)                                                    the income year to which the general interest charge relates

Joint and several liability of contributing member

721‑15  Head company and contributing members jointly and severally liable to pay group liability

 (1) The following are jointly and severally liable to pay the group liability:
 (a) the *head company; and
 (b) each contributing member (other than a contributing member excluded by subsection (2)).

Note: A group liability is a tax‑related liability in relation to the head company and each contributing member. For rights of contribution in respect of such a liability, see subsection 265‑45(2) in Schedule 1 to the Taxation Administration Act 1953.

 (2) For the purposes of paragraph (1)(b), a contributing member is excluded by this subsection if it is, at the head company's due time, prohibited according to the effect of an Australian law from entering into any arrangement under which the entity becomes subject to a liability referred to in subsection (1).

 (3) Subsection (1) does not operate if the group liability is covered by a tax sharing agreement (see section 721‑25).

 (4) The joint and several liability of the contributing members under subsection (1) arises just after the *head company's due time.

 (5) The joint and several liability of a particular contributing member under subsection (1) becomes due and payable by the member 14 days after the Commissioner gives the member written notice under this subsection of the liability.

Note 1: If the Commissioner gives this notice to one contributing member, and gives this notice to another contributing member on another day, the 2 contributing members will have different due and payable dates for the same liability.

Note 2: This section does not affect the time at which the group liability arose for, or became due and payable by, the head company.

 (6) To the extent that the contributing members' liability under subsection (1) is not a liability for income tax, that liability is to be treated as a liability for income tax for the purposes of section 254 of the Income Tax Assessment Act 1936.

721‑20  Limit on liability where group first comes into existence

 (1) This section operates if the group came into existence during the period to which a group liability relates.

 (2) The contributing members' liability under subsection 721‑15(1) to pay the group liability is limited to the proportion of the group liability that is reasonably attributable to the period:
 (a) beginning at the time the group came into existence; and
 (b) ending at the time when the period to which the group liability relates ends.

Tax sharing agreements

721‑25  When a group