Tax Laws Amendment (2010 GST Administration Measures No. 2) Act 2010 (74 of 2010)

Schedule 1   GST groups and GST joint ventures

Part 1   Forming, changing and dissolving GST groups and GST joint ventures

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

31   Subdivision 51-C

Repeal the Subdivision, substitute:

Subdivision 51-C - Administrative matters

51-70 Changing the participants etc. of GST joint ventures

(1) The following actions may be taken in relation to a *GST joint venture:

(a) the *joint venture operator of the joint venture may, with the written agreement of an entity that *satisfies the participation requirements of the GST joint venture, add the entity to the joint venture;

(b) the joint venture operator may:

(i) if the joint venture operator is a *participant in the joint venture - leave the joint venture; or

(ii) remove from the joint venture a participant in the joint venture;

(c) another entity, nominated by the participants in the joint venture, that satisfies the requirements of paragraphs 51-10(c) and (f) may become the joint venture operator;

(d) the joint venture operator may dissolve the joint venture;

by notice given to the Commissioner, in the *approved form, by the joint venture operator, or (if subparagraph (b)(i) or paragraph (c) applies) by the new joint venture operator of the joint venture.

(2) The action takes effect from the start of the day specified in the notice (whether that day is before, on or after the day on which the notice was given to the Commissioner).

(3) However, if the notice was given to the Commissioner after the day by which the *joint venture operator of the joint venture, or the entity nominated to be the new joint venture operator of the joint venture, is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the action takes effect from the start of:

(a) the day specified in the notice, if that day is approved by the Commissioner under section 51-75; and

(b) if paragraph (a) does not apply - such other day as the Commissioner approves under that section.

(4) A *GST joint venture is taken to be dissolved if:

(a) an entity ceases to be the *joint venture operator of the joint venture, and no other entity becomes the joint venture operator of the joint venture with effect from the day after the previous joint venture operator ceased to be the joint venture operator; or

(b) there are no longer 2 or more *participants in the joint venture.

(5) A notice that another entity has become the *joint venture operator of the *GST joint venture must be given to the Commissioner within 21 days after the other entity became the joint venture operator.

Note: Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.

51-75 Approval of early day of effect of forming, changing etc. GST joint ventures

(1) If an entity that gives a notice to the Commissioner under paragraph 51-5(1)(eb) or subsection 51-70(1) applies, in the *approved form, to the Commissioner for approval of a day specified in the notice, the Commissioner must:

(a) approve, for the purposes of subsection 51-5(4) or 51-70(3), the day specified in the notice; or

(b) approve another day for those purposes.

Note: Approving another day under paragraph (b) is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).

(2) The Commissioner may revoke an approval given under subsection (1) if the Commissioner is satisfied that the day approved is not appropriate.

Note: Revoking an approval under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).

(3) The Commissioner must give notice, to the entity referred to in subsection (1), of any decision that he or she makes under this section.