78‑70 Payments etc. to third parties by 78‑70 Payments etc. to third parties by insured entities

78‑70 Payments etc. to third parties by insured entities

(1) The making of any payment by an entity to another entity is not to be treated as *consideration for a supply to the entity by that other entity, to the extent that: (a) the payment is to discharge a liability of the entity to that other entity; and (b) the payment is covered by a settlement of a claim under an *insurance policy under which the entity was insured against that liability. (2) The making of any supply by an entity to another entity: (a) is not to be treated as a *taxable supply by the entity; and (b) is not to be treated as *consideration for a supply to the entity by that other, or any other, entity; to the extent that: (c) the supply is to discharge a liability of the entity to that other entity; and (d) the supply is covered by a settlement of a claim under an *insurance policy under which the entity was insured against that liability. (3) This section has effect despite section 9‑5 (which is about what are taxable supplies) and section 9‑15 (which is about consideration).