Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 84.15

  (1)   For the purposes of section   84 - 5, if an entity:

  (a)   * carries on an * enterprise in the indirect tax zone; and

  (b)   also carries on that or another enterprise outside the indirect tax zone;

then:

  (c)   the transfer of anything to the enterprise in the indirect tax zone from the enterprise outside the indirect tax zone; or

  (d)   the doing of anything for the enterprise in the indirect tax zone by the enterprise outside the indirect tax zone;

is taken to be a supply that is not * connected with the indirect tax zone.

Example:   An entity acquires, through a place of business it has overseas, the right to exploit a particular copyright in the indirect tax zone. That right is then transferred to a place of business that the entity has in the indirect tax zone.

  Under this section, the transfer is taken to be a supply that is not connected with the indirect tax zone and, if the other requirements of section   84 - 5 are satisfied, the transfer is a taxable supply.

  (2)   If the transfer is a transfer of the services of an employee, this section does not apply to the transfer to the extent that any payments that:

  (a)   are made from the * enterprise in the indirect tax zone to the enterprise outside the indirect tax zone; and

  (b)   relate to the transfer;

would be * withholding payments if they were payments from the enterprise in the indirect tax zone to the employee.