A New Tax System (Goods and Services Tax) Act 1999
110‑65 Indirect tax sharing agreements—l110‑65 Indirect tax sharing agreements—leaving GST group or GST joint venture clear of liability
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110‑65 Indirect tax sharing agreements—leaving GST group or GST joint venture clear of liability
(1) A supply made to a contributing member (within the meaning of subsection 444‑90(1A) in Schedule 1 to the Taxation Administration Act 1953) of a *GST group is not a *taxable supply if: (a) the supply is a release from an obligation relating to a contribution amount (within the meaning of that subsection) relating to liabilities of the *representative member of the group that are referred to in that subsection; and
Example: The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined.
(b) the contributing member leaves the group in circumstances in which subsection 444‑90(1B) in that Schedule applies to the contributing member.
(2) A supply made to a contributing participant (within the meaning of subsection 444‑80(1A) in Schedule 1 to the Taxation Administration Act 1953) of a *GST joint venture is not a *taxable supply if: (a) the supply is a release from an obligation relating to a contribution amount (within the meaning of that subsection) relating to liabilities of the *joint venture operator of the joint venture that are referred to in that subsection; and
Example: The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined.
(b) the contributing participant leaves the joint venture in circumstances in which subsection 444‑80(1B) in that Schedule applies to the contributing participant.
(3) This section has effect despite section 9‑5 (which is about what are taxable supplies).