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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS    View history reference

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

When this Division operates  

SECTION 721-10  When this Division operates  

 View history reference

721-10(1)  

This Division operates if:


(a) a *tax-related liability mentioned in subsection (2) (a group liability) of the *head company of a *consolidated group was not paid or otherwise discharged in full by the time the liability became due and payable (the head company's due time); and


(b) one or more entities (the contributing members) were *subsidiary members of the group for at least part of the period to which the group liability relates.

Note:

This Division operates even if some or all of the contributing members were no longer members of the group at the head company's due time.

721-10(2)  

 View history reference
The following table lists the *tax-related liabilities for the purposes of paragraph (1)(a) and the periods to which each of those liabilities relate:
Tax-related liabilities of the head company and the periods to which they relate
Item The tax-related liability of the head company that becomes due and payable as specified in this provision ... ... relates to this period
3section 5-5 of the Income Tax Assessment Act 1997 (income tax, and other amounts treated in the same way as income tax under that section)the *financial year to which the income tax etc relates
5section 197-70 of the Income Tax Assessment Act 1997 (untainting tax)the *franking period of the *head company in which the *untainting tax became due and payable
10 subsection 214-150(1) of the Income Tax Assessment Act 1997 (franking tax) the income year to which the *franking tax relates
15 subsection 214-150(2) of the Income Tax Assessment Act 1997 (franking tax - part year assessment) the particular period mentioned in subsection 214-70(1) to which the *franking tax relates
20 subsection 214-150(3) of the Income Tax Assessment Act 1997 (franking tax - amended assessments otherwise than because of deficit deferral) the income year (or particular period mentioned in subsection 214-70(1)) to which the *franking tax relates
22 subsection 214-150(4) of the Income Tax Assessment Act 1997 (franking tax - deficit deferral) the income year (or particular period mentioned in subsection 214-70(1)) to which the *franking deficit tax relates
25 (Repealed by No 79 of 2010) 
30 section 45-61 in Schedule 1 to the Taxation Administration Act 1953 (quarterly *PAYG instalment) the *instalment quarter to which the *instalment relates
32 section 45-67 in Schedule 1 to the Taxation Administration Act 1953 (monthly *PAYG instalment)the *instalment month to which the *instalment relates
35 section 45-70 in Schedule 1 to the Taxation Administration Act 1953 (annual *PAYG instalment) the income year to which the *instalment relates
40 section 8AAE of the Taxation Administration Act 1953 (general interest charge) the period provided for in this table for the *tax-related liability to which the general interest charge relates
45 subsection 45-230(4) in Schedule 1 to the Taxation Administration Act 1953 (general interest charge on shortfall in instalment worked out on basis of varied rate)the *instalment quarter or *instalment month to which the general interest charge relates
50 subsection 45-232(5) in Schedule 1 to the Taxation Administration Act 1953 (general interest charge on shortfall in quarterly instalment worked out on basis of estimated benchmark tax) the *instalment quarter to which the general interest charge relates
55 subsection 45-235(5) in Schedule 1 to the Taxation Administration Act 1953 (general interest charge on shortfall in annual instalment) the income year to which the general interest charge relates
60 subsection 45-875(2) in Schedule 1 to the Taxation Administration Act 1953 (head company's liability to GIC on shortfall in instalment)the *instalment quarter or *instalment month to which the general interest charge relates
65 if an administrative penalty of a kind mentioned in section 284-75, 284-145, 286-75 or 288-25 in Schedule 1 to the Taxation Administration Act 1953 relates only to another *tax-related liability mentioned in this table - section 298-15 in that Schedule the period provided for in this table for the *tax-related liability to which the penalty relates
70 Division 280 in Schedule 1 to the Taxation Administration Act 1953 (shortfall interest charge)the period provided for in this table for the *tax-related liability to which the shortfall interest charge relates
75(Repealed by No 96 of 2014) 
80(Repealed by No 96 of 2014) 
85(Repealed by No 96 of 2014) 
95subsection 82(1) or (2) of the Petroleum Resource Rent Tax Assessment Act 1987 (when tax assessed under that Act is payable)the year of tax (within the meaning of that Act) to which the tax assessed under that Act relates
100subsection 82(3) of the Petroleum Resource Rent Tax Assessment Act 1987 (shortfall interest charge on shortfall in tax assessed under that Act)the year of tax (within the meaning of that Act) to which the *shortfall interest charge relates
105section 95 of the Petroleum Resource Rent Tax Assessment Act 1987 (when instalment of tax is payable)the instalment period (within the meaning of that Act) in relation to the instalment
110subsection 98C(4) of the Petroleum Resource Rent Tax Assessment Act 1987 (when instalment transfer interest charge is due)the instalment transfer charge period (within the meaning of that Act) in relation to the charge
115Subsection 177P(3) of the Income Tax Assessment Act 1936 (diverted profits tax)the income year to which the diverted profits tax relates

Note:

The other amounts referred to in item 3 of the table are:

(a) interest payable under section 102AAM of the Income Tax Assessment Act 1936 (distributions from certain non-resident trust estates); and
(b) tax payable under section 159GZZZZH of that Act (Tax payable where infrastructure borrowing certificate cancelled).

721-10(3)  

 View history reference
Item 30 of the table in subsection (2) is taken not to include a *PAYG instalment of the *head company if the Commissioner gave the head company its *initial head company instalment rate after the end of the *instalment quarter of the head company to which the PAYG instalment relates.

721-10(3A)  

 View history reference
Item 32 of the table in subsection (2) is taken not to include a *PAYG instalment of the *head company if the Commissioner gave the head company its *initial head company instalment rate on or after the start of the *instalment month of the head company to which the PAYG instalment relates.

721-10(4)  

(Repealed by No 96 of 2014)

721-10(5)  

 View history reference
The following only apply in relation to tax-related liabilities that are due and payable because a choice has been made, under section 58N of the Petroleum Resource Rent Tax Assessment Act 1987, to apply Division 8 of Part V of that Act in relation to the *consolidated group:


(a) items 95, 100, 105 and 110 of the table in subsection (2);


(b) items 40 and 65 of that table to the extent that they relate to tax-related liabilities to which the items referred to in paragraph (a) apply.

721-10(6)  

 View history reference
Without limiting subsection (5), in the application of this section in relation to a *MEC group because of section 719-2, the items referred to in that subsection also apply in relation to tax-related liabilities of the *provisional head company of the MEC group.


 



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