Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 5 - Administration  

PART 5-45 - APPLICATION OF TAXATION LAWS TO CERTAIN ENTITIES  

Division 444 - Obligations of entities on behalf of other entities  

Subdivision 444-E - Indirect tax specific entities  

SECTION 444-80   GST JOINT VENTURES  

Joint and several liability

444-80(1)    

The *participants in a *GST joint venture are jointly and severally liable to pay any amount (an indirect tax amount ) that is payable under an *indirect tax law by the *joint venture operator for the joint venture, to the extent that the amount relates to the joint venture.

Indirect tax sharing agreements

444-80(1A)    

Despite subsection (1), if:

(a) before the *joint venture operator for the joint venture is required to give to the Commissioner a *GST return for a *tax period, an agreement (the indirect tax sharing agreement ) has been entered into between:

(i) the joint venture operator; and

(ii) one or more *participants in the joint venture (the contributing participant ) (other than the joint venture operator); and

(b) a particular amount (the contribution amount ) could be determined under the indirect tax sharing agreement for each contributing participant in relation to that tax period; and

(c) the contribution amounts for each of the contributing participants under the indirect tax sharing agreement represent a reasonable allocation among:

(i) the joint venture operator; and

(ii) the contributing participants;

of the total amount payable, under *indirect tax laws, for which the participants in the joint venture would be jointly or severally liable under subsection (1) in relation to that tax period;

then:

(d) if the contributing participant leaves the joint venture before the joint venture operator for the joint venture is required to give to the Commissioner a GST return for that tax period, and subsection (1B) applies - the contributing participant is not liable under subsection (1) in relation to an indirect tax amount relating to that tax period; or

(e) otherwise - the contributing participant ' s liability under subsection (1) in relation to that tax period is not to exceed that contribution amount.

444-80(1B)    

This subsection applies if:

(a) leaving the joint venture was not part of an arrangement, a purpose of which was to prejudice the recovery by the Commissioner of the indirect tax amount; and

(b) before the day on which the *joint venture operator is required to give to the Commissioner a *GST return for that tax period, the contributing participant pays to the joint venture operator:

(i) the contribution amount relating to that tax period; or

(ii) if the contribution amount cannot be determined at the time of the payment - an amount that is a reasonable estimate of the contribution amount.

444-80(1C)    

Subsection (1A) does not apply if:

(a) the indirect tax sharing agreement was entered into as part of an arrangement; and

(b) a purpose of the arrangement was to prejudice the recovery by the Commissioner of the indirect tax amount.

444-80(1D)    

Subsection (1A) does not apply if:

(a) the Commissioner gives the *joint venture operator of the joint venture written notice under this subsection in relation to the indirect tax sharing agreement (whether before, when or after an indirect tax amount to which the agreement relates becomes payable); and

(b) the notice requires the joint venture operator to give the Commissioner a copy of the agreement in the *approved form within 14 days after the notice is given; and

(c) the Commissioner does not receive a copy of the agreement by the time required.

444-80(1E)    

Subsection (1A) does not apply if, apart from this subsection, the requirements of subsection (1A) would be satisfied in relation to 2 or more agreements:

(a) that were entered into by the *joint venture operator; and

(b) that relate to the same tax period.

Criminal liability of participants in GST joint ventures

444-80(2)    
Any offence against an *indirect tax law that:

(a) is committed by the *joint venture operator for a *GST joint venture; and

(b) relates to the joint venture;

is taken to have been committed by each of the *participants in the joint venture.

444-80(3)    
In a prosecution of an entity for an offence that the entity is taken to have committed because of subsection (2), it is a defence if the entity proves that the entity:

(a) did not aid, abet, counsel or procure the relevant act or omission; and

(b) was not in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the entity).

Note 1:

The defence in subsection (3) does not apply in relation to offences under Part 2.4 of the Criminal Code.

Note 2:

A defendant bears a legal burden in relation to the matters in subsection (3): see section 13.4 of the Criminal Code.