A GST group may have an indirect tax sharing agreement (ITXSA) specifying the amounts each member contributes to the group's indirect tax law liabilities for a particular tax period. The ITXSA may specify:
- fixed contribution amounts for each contributing member
- a method of allocation under which contribution amounts are determined.
Either way, the contribution amounts calculated under the ITXSA must represent a 'reasonable allocation' of liabilities among the group's representative member and contributing members.
See also
- Paragraph 444-90(1A)(c) of Schedule 1 to the Taxation Administration Act 1953 (TAA)