Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 110.25

  (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).