Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1997
1 At the end of Subdivision 709 - A
Add:
Payment of group liability by former subsidiary member
709 - 95 Payment of group liability by former subsidiary member
(1) This section operates if:
(a) an entity (the former subsidiary ) ceases to be a * subsidiary member of a * consolidated group (the old group ) at a particular time (the leaving time ) ; and
(b) at or after the leaving time, the former subsidiary:
(i) * pays a PAYG instalment for which it was jointly and severally liable under subsection 721 - 15(1) because it was a subsidiary member of the old group; or
(ii) * pays income tax for which it was jointly and severally liable under that subsection because it was a subsidiary member of the old group; and
(c) apart from this section, a * franking credit would arise under section 205 - 15 in the * franking account of the former subsidiary at a time (the crediting time ) because of that payment.
(2) The credit:
(a) does not arise at the crediting time in the * franking account of the former subsidiary; and
(b) instead, arises at the crediting time in the franking account of the entity that was the * head company of the old group at the leaving time.
709 - 100 Refund of income tax to former subsidiary member
(1) This section operates if:
(a) an entity (the former subsidiary ) ceases to be a * subsidiary member of a * consolidated group (the old group ) at a particular time (the leaving time ) ; and
(b) at or after the leaving time, the former subsidiary * receives a refund of income tax for which it was jointly and severally liable under subsection 721 - 15(1) because it was a subsidiary member of the old group; and
(c) apart from this section, a * franking debit would arise under section 205 - 30 in the * franking account of the former subsidiary at a time (the debiting time ) because of that payment.
(2) The debit:
(a) does not arise at the debiting time in the * franking account of the former subsidiary; and
(b) instead, arises at the debiting time in the franking account of the entity that was the * head company of the old group at the leaving time.
2 Subsection 721 - 10(2) (at the end of the table)
Add:
60 | subsection 45 - 875(2) in Schedule 1 to the Taxation Administration Act 1953 (head company's liability to GIC on shortfall in quarterly instalment) | the * instalment quarter to which the general interest charge relates |
65 | if an administrative penalty of a kind mentioned in section 284 - 75, 284 - 145, 286 - 75 or 288 - 25 in Schedule 1 to the Taxation Administration Act 1953 relates only to another * tax - related liability mentioned in this table--section 298 - 15 in that Schedule | the period provided for in this table for the * tax - related liability to which the penalty relates |
3 After subsection 721 - 15(5)
Insert:
(5A) Despite subsection ( 5), if the group liability is * general interest charge for a day, the joint and several liability of a particular contributing member under subsection ( 1) becomes due and payable by the member at the end of the day on which the Commissioner gives the member written notice of the liability under subsection ( 5).
4 After section 721 - 15
Insert:
721 - 17 Notice of joint and several liability for general interest charge
(1) This section operates if:
(a) the group liability is * general interest charge for a day in relation to another liability (the primary liability ); and
(b) the Commissioner gives a particular contributing member written notice under subsection 721 - 15(5) of the group liability; and
(c) general interest charge arises for a subsequent day in relation to the primary liability; and
(d) the general interest charge for the subsequent day has not been paid or otherwise discharged in full by the time it became due and payable.
(2) The Commissioner is taken to have given the contributing member written notice under subsection 721 - 15(5) of the * general interest charge for the subsequent day. The notice is taken to have been given on that day.
5 After subsection 721 - 30(5)
Insert:
(5A) Despite subsection ( 5), if the group liability is * general interest charge for a day, the liability of a TSA contributing member under subsection ( 2) becomes due and payable by the member at the end of the day on which the Commissioner gives the member written notice of the liability under subsection ( 5).
6 After section 721 - 30
Insert:
721 - 32 Notice of general interest charge liability under TSA
(1) This section operates if:
(a) the group liability is * general interest charge for a day in relation to another liability (the primary liability ); and
(b) the Commissioner gives a particular TSA contributing member written notice under subsection 721 - 30(5) of its liability under subsection 721 - 30(2) in relation to the general interest charge for that day; and
(c) general interest charge arises for a subsequent day in relation to the primary liability; and
(d) the TSA contributing member is liable under subsection 721 - 30(2) for an amount in relation to the general interest charge for the subsequent day.
(2) The Commissioner is taken to have given the TSA contributing member written notice under subsection 721 - 30(5) of the amount in relation to the * general interest charge for the subsequent day. The notice is taken to have been given on that day.
7 After section 721 - 35
Insert:
721 - 40 TSA liability and group liability are linked
(1) The liability of a TSA contributing member under subsection 721 - 30 (2) (the TSA liability ) is separate and distinct for all purposes from the group liability to which it relates (the linked group liability ). For example, the Commissioner may take proceedings to recover the unpaid amount of the TSA liability, proceedings to recover the unpaid amount of the linked group liability, or both.
Note: The TSA contributing member will not be jointly and severally liable for the linked group liability under section 721 - 15 (see subsection 721 - 15(3)). However, the head company of the group remains liable for the linked group liability.
Payment or discharge of TSA liability
(2) If an amount is paid or applied at a particular time towards discharging the TSA liability , the linked group liability is discharged at that time to the extent of the same amount.
Payment or discharge of linked group liability
(3) If:
(a) an amount is paid or applied at a particular time towards discharging the linked group liability; and
(b) as a result, the amount unpaid on the TSA liability at that time (apart from this section) exceeds the amount unpaid on the linked group liability at that time;
the TSA liability is discharged at that time to the extent of the excess.
(4) Subsections ( 2) and (3) operate in relation to a liability under a judgment (the judgment liability ):
(a) if the judgment liability is for the entire amount unpaid on the TSA liability--as if the judgment liability were the TSA liability; and
(b) if the judgment liability is for the entire amount unpaid on the linked group liability--as if the judgment liability were the linked group liability.
(5) This section does not discharge a liability to a greater extent than the amount of the liability.
Taxation Administration Act 1953
8 Subsection 250 - 10(1) in Schedule 1 (note)
Omit "Note", substitute "Note 1".
9 At the end of subsection 250 - 10(1) in Schedule 1 (after the note)
Add:
Note 2: Members and former members of consolidated groups and MEC groups may be jointly and severally liable to pay certain tax - related liabilities related to the group's activities (see Division 721 of the Income Tax Assessment Act 1997 ).
10 Subsection 250 - 10(2) (after table item 37)
Insert:
39 | TSA liability | 721 - 30 |
11 Subsection 250 - 10(2) in Schedule 1 (note)
Omit "Note", substitute "Note 1".
12 At the end of subsection 250 - 10(2) in Schedule 1 (after the note)
Add:
Note 2: Members and former members of consolidated groups and MEC groups may be jointly and severally liable to pay certain tax - related liabilities related to the group's activities (see Division 721 of the Income Tax Assessment Act 1997 ).