Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 721 - Liability for payment of tax where head company fails to pay on time  

Object  

SECTION 721-5  

721-5   Object of this Division  

The object of this Division is to secure the payment of certain tax liabilities of the ^* head company of a ^* consolidated group where the head company fails to meet all of those liabilities by the time they become due and payable. Accordingly:

(a) if a relevant liability is not covered by a tax sharing agreement - this Division provides for a process to make certain entities that were ^* subsidiary members of the group for at least part of the period to which each tax liability relates jointly and severally liable with the head company for those liabilities; or

(b) if a relevant liability is covered by a tax sharing agreement - this Division:

(i) provides for a process to make each of those entities liable for the amount determined under the agreement in relation to the liability; but

(ii) exempts an entity from a liability determined under the agreement if it leaves the group in certain circumstances.