Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_55:p2
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 55 (pt 2/3)
Character Range: 246335–249054

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.

 (2) Despite subsection (1), the group liability is not covered by a tax sharing agreement for the purposes of this Division if:
 (a) the agreement mentioned in paragraph (1)(a) was entered into as part of an arrangement; and
 (b) a purpose of the arrangement was to prejudice the recovery by the Commissioner of some or all of the amount of the group liability or liabilities of that kind.

 (3) Despite subsection (1), the group liability is taken never to have been covered by a tax sharing agreement for the purposes of this Division if:
 (a) the Commissioner gives the *head company of the group written notice under this subsection (whether before, at or after the head company's due time) in relation to the group liability; and
 (b) the notice requires the head company to give the Commissioner a copy of the agreement mentioned in paragraph (1)(a) in the approved form within 14 days after the notice is given; and
 (c) the Commissioner does not receive a copy of the agreement by the time required.

Note: If this subsection operates, joint and several liability can arise under section 721‑15 in relation to the group liability.

721‑30  TSA contributing members liable for contribution amounts

 (1) This section operates if a group liability is covered by a tax sharing agreement.

 (2) Each TSA contributing member is liable to pay to the Commonwealth an amount equal to the contribution amount for that member in relation to the group liability.

 (3) Despite subsection (2), a TSA contributing member is not liable under that subsection if the member left the group clear of the group liability