Document ID: chunk:federal_register_of_legislation:C2025C00029:section:115:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 115 (pt 3/40)
Character Range: 6506176–6508899

by the time it became due and payable.
 (2) The Commissioner is taken to have given the contributing member written notice under subsection 721‑15(5) of the *general interest charge for the subsequent day. The notice is taken to have been given on that day.

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 liability is covered by a tax sharing agreement
 (1) For the purposes of this Division, a group liability is covered by a tax sharing agreement if, just before the head company's due time:
 (a) an agreement existed between the *head company of the group and one or more of the contributing members (the TSA contributing members); and
 (b) a particular amount (the contribution amount) could be determined under the agreement for each TSA contributing member in relation to the group liability; and
 (c) the contribution amounts for each of the TSA contributing members in relation to the group liability, as determined under the agreement, represented a reasonable allocation of the total amount of the group liability among the head company and the TSA contributing members; and
 (d) the agreement complied with the requirements (if any) set out in the regulations.
 (1A) The requirement in paragraph (1)(c) is taken to be satisfied if:
 (a) the group liability is a *tax‑related liability mentioned in item 3 of the table in subsection 721‑10(2) in relation to an income year; and
 (b) before, at or after the head company's due time, the *head company of the group became entitled to either or both of the following:
 (i) a credit under section 45‑30 in Schedule 1 to the Taxation Administration Act 1953 for that income year;
 (ii) a credit under section 45‑865 in Schedule 1 to that Act for that income year; and
 (c) just before the head company's due time, the contribution amounts for each of the TSA contributing members in relation to the group liability, as determined under the agreement, represented a reasonable allocation among the head company and the TSA contributing members of the difference between:
 (i) the total amount of the group liability; and
 (ii) the amount of the credit, or the sum of the credits, mentioned in paragraph (b).
 (1B) Despite subsections (1)and (1A), the