Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p66
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 66/66)
Character Range: 6491660–6494188

a group liability is covered by a tax sharing agreement
721‑30 TSA contributing members liable for contribution amounts
721‑32 Notice of general interest charge liability under TSA
721‑35 When a TSA contributing member has left the group clear of the group liability
721‑40 TSA liability and group liability are linked

Object

721‑5  Object of this Division
  The object of this Division is to secure the payment of certain tax liabilities of the *head company of a *consolidated group where the head company fails to meet all of those liabilities by the time they become due and payable. Accordingly:
 (a) if a relevant liability is not covered by a tax sharing agreement—this Division provides for a process to make certain entities that were *subsidiary members of the group for at least part of the period to which each tax liability relates jointly and severally liable with the head company for those liabilities; or
 (b) if a relevant liability is covered by a tax sharing agreement—this Division:
 (i) provides for a process to make each of those entities liable for the amount determined under the agreement in relation to the liability; but
 (ii) exempts an entity from a liability determined under the agreement if it leaves the group in certain circumstances.

When this Division operates

721‑10  When this Division operates
 (1) This Division operates if:
 (a) a *tax‑related liability mentioned in subsection (2) (a group liability) of the *head company of a *consolidated group was not paid or otherwise discharged in full by the time the liability became due and payable (the head company's due time); and
 (b) one or more entities (the contributing members) were *subsidiary members of the group for at least part of the period to which the group liability relates.
Note: This Division operates even if some or all of the contributing members were no longer members of the group at the head company's due time.
 (2) The following table lists the *tax‑related liabilities for the purposes of paragraph (1)(a) and the periods to which each of those liabilities relate:

Tax‑related liabilities of the head company and the periods to which they relate
Item                                                                              The tax‑related liability of the head company that becomes due and payable as specified in this provision ...                                                                                                                                               ... relates to this period