A New Tax System (Goods and Services Tax) Act 1999
110‑25 Tax sharing agreements—leaving gr110‑25 Tax sharing agreements—leaving group clear of group liability
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110‑25 Tax sharing agreements—leaving group clear of group liability
(1) A supply made to a *TSA contributing member of a *consolidated group or a *MEC group is not a *taxable supply if: (a) the supply is a release from an obligation relating to a *contribution amount in relation to a *group liability of the *head company of the group; and
Example: The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined.
(b) the TSA contributing member has, for the purposes of subsection 721‑30(3) of the \*ITAA 1997, left the group clear of the group liability.
Note: See section 721‑35 of the ITAA 1997 for when a TSA contributing member has left a group clear of the group liability.
(2) This section has effect despite section 9‑5 (which is about what are taxable supplies).