Document ID: chunk:federal_register_of_legislation:C2010A00074:clause:1_58:p1
Version: federal_register_of_legislation:C2010A00074
Segment Type: clause
Provision Reference: sch 1 cl 58 (pt 1/2)
Character Range: 50416–53268

58  After subsection 444‑80(1) in Schedule 1
Insert:

Indirect tax sharing agreements
 (1A) Despite subsection (1), if:
 (a) before the *joint venture operator for the joint venture is required to give to the Commissioner a *GST return for a *tax period, an agreement (the indirect tax sharing agreement) has been entered into between:
 (i) the joint venture operator; and
 (ii) one or more *participants in the joint venture (the contributing participant) (other than the joint venture operator); and
 (b) a particular amount (the contribution amount) could be determined under the indirect tax sharing agreement for each contributing participant in relation to that tax period; and
 (c) the contribution amounts for each of the contributing participants under the indirect tax sharing agreement represent a reasonable allocation among:
 (i) the joint venture operator; and
 (ii) the contributing participants;
  of the total amount payable, under *indirect tax laws, for which the participants in the joint venture would be jointly or severally liable under subsection (1) in relation to that tax period;
then:
 (d) if the contributing participant leaves the joint venture before the joint venture operator for the joint venture is required to give to the Commissioner a GST return for that tax period, and subsection (1B) applies—the contributing participant is not liable under subsection (1) in relation to an indirect tax amount relating to that tax period; or
 (e) otherwise—the contributing participant's liability under subsection (1) in relation to that tax period is not to exceed that contribution amount.
 (1B) This subsection applies if:
 (a) leaving the joint venture was not part of an arrangement, a purpose of which was to prejudice the recovery by the Commissioner of the indirect tax amount; and
 (b) before the day on which the *joint venture operator is required to give to the Commissioner a *GST return for that tax period, the contributing participant pays to the joint venture operator:
 (i) the contribution amount relating to that tax period; or
 (ii) if the contribution amount cannot be determined at the time of the payment—an amount that is a reasonable estimate of the contribution amount.
 (1C) Subsection (1A) does not apply if:
 (a) the indirect tax sharing agreement was entered into as part of an arrangement; and
 (b) a purpose of the arrangement was to prejudice the recovery by the Commissioner of the indirect tax amount.
 (1D) Subsection (1A) does not apply if:
 (a) the Commissioner gives the *joint venture operator of the joint venture written notice under this subsection in relation to the indirect tax sharing agreement (whether before, when or after an indirect tax amount to which the agreement relates becomes payable); and
 (b) the notice requires the joint venture operator to give the Commissioner