Tax Laws Amendment (2009 Measures No. 5) Act 2009 (118 of 2009)

Schedule 1   GST and representatives of incapacitated entities

Part 3   Amendments commencing on Royal Assent

A New Tax System (Goods and Services Tax) Act 1999

22   After section 48-70

Insert:

48-72 Effect of representative member becoming an incapacitated entity

(1) The *representative member of a *GST group ceases to be the representative member of the group if the representative member becomes an *incapacitated entity.

(2) Subsection (1) does not apply if, when the *representative member of the group becomes an *incapacitated entity, all the other *members of the group are incapacitated entities.

(3) The *representative member of a *GST group ceases to be the representative member of the group if:

(a) all the *members of the group are *incapacitated entities; and

(b) a member of the group who is not the representative member ceases to be an incapacitated entity.

(4) If a *member of a *GST group ceases, because of this section, to be the *representative member of the group, the Commissioner must approve another member of the group to replace that member as the representative member of the group if:

(a) any member of the group applies to the Commissioner in the *approved form for that other member to be so approved; and

(b) that other member is not an *incapacitated entity.

48-73 Tax periods of GST groups with incapacitated members

(1) If a *member of a *GST group becomes an *incapacitated entity, the *representative member of that group may, by notifying the Commissioner in the *approved form, elect for the tax period that applies at the time to the members of the group to end at the same time as the incapacitated entity's tax period ends under subsection 27-39(1).

Note 1: Section 31-10 provides for when a GST return must be given to the Commissioner for a tax period other than a quarterly tax period.

Note 2: If the representative member does not make an election under this section when a member of the group becomes an incapacitated entity, it is likely that the member would no longer satisfy paragraph 48-10(1)(d), and that the Commissioner would revoke its approval as a member of the group under subsection 48-70(2).

(2) If a tax period (the first tax period ) ends on a particular day because of subsection (1), the next tax period starts on the day after that day and ends when the first tax period would have ended but for that subsection.

(3) This section has effect despite Division 27 (which is about how to work out the tax periods that apply).