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  

Tax sharing agreements  

SECTION 721-30   TSA contributing members liable for contribution amounts  

721-30(1)    
This section operates if a group liability is covered by a tax sharing agreement.

721-30(2)    
Each TSA contributing member is liable to pay to the Commonwealth an amount equal to the contribution amount for that member in relation to the group liability.

721-30(3)    
Despite subsection (2), a TSA contributing member is not liable under that subsection if the member left the group clear of the group liability (see section 721-35 ).

721-30(4)    
The liability of a TSA contributing member under subsection (2) arises just after the ^* head company's due time.

721-30(5)    
The liability of a TSA contributing member under subsection (2) becomes due and payable by the member 14 days after the Commissioner gives the member written notice under this subsection of the liability.

Note:

This section does not affect the time at which the group liability arose for, or became due and payable by, the head company.

721-30(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).

721-30(6)    
The liability of a TSA contributing member under subsection (2) is to be treated as a liability for income tax for the purposes of section 254 of the Income Tax Assessment Act 1936 .