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

Chapter 4 - The special rules  

Part 4-1 - Special rules mainly about particular ways entities are organised  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 so far as that Part deals with liability for GST and entitlement to input tax credits, but the special rules also affect other aspects of Part 2-2 and the other Parts of Chapter 2.

Division 48 - GST groups  

CCH Note

Act No 74 of 2010, s 3 and Sch 1 item 43 contains the following transitional provisions:

43 Transitional provisions for GST groups  

GST groups in existence before commencement


(1) Subject to subitems (5) to (8), on the commencement of this item [28 June 2010]:


(a) a GST group that existed immediately before that commencement is taken to continue in existence as if:


(i) it had been formed, and its formation had been notified to the Commissioner, in accordance with section 48-5 of the A New Tax System (Goods and Services Tax) Act 1999 as amended; and

(ii) its formation took effect immediately after that commencement; and


(b) the entities that were members of the group immediately before that commencement are taken, immediately after that commencement, to continue to be the members of the group; and


(c) the entity that was the representative member of the group immediately before that commencement is taken, immediately after that commencement, to continue to be the representative member of the group.

GST groups approved, but not in existence, before commencement


(2) If, before the commencement of this item [28 June 2010], the Commissioner approved 2 or more entities as a GST group but the approval did not take effect before that commencement, then, on the date of effect decided by the Commissioner under section 48-85 of the A New Tax System (Goods and Services Tax) Act 1999:


(a) the group is taken to have been formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 48-5 of that Act as amended; and


(b) the entities that jointly applied for that approval are taken to be the members of the group; and


(c) the entity that was nominated in the application to be the representative member of the group is taken to be the representative member of the group.

GST groups applied for, but not approved, before commencement


(3) If:


(a) before the commencement of this item [28 June 2010], 2 or more entities applied, in accordance with section 48-5 of the A New Tax System (Goods and Services Tax) Act 1999, for approval of a GST group; and


(b) the application did not contain a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of approval of the group, a date occurring before the date of that commencement; and


(c) the Commissioner did not approve the group as a GST group, and did not refuse the application, before that commencement;

then, on the date of effect specified in the application:


(d) the group is taken to be formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 48-5 of that Act as amended; and


(e) the entities that jointly applied for that approval are taken to be the members of the group; and


(f) the entity that was nominated in the application to be the representative member of the group is taken to be the representative member of the group.


(4) If:


(a) before the commencement of this item [28 June 2010], 2 or more entities applied, in accordance with section 48-5 of the A New Tax System (Goods and Services Tax) Act 1999, for approval of a GST group; and


(b) the application contained a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of approval of the group, a date occurring before the date of that commencement; and


(c) the Commissioner did not approve the group as a GST group, and did not refuse the application, before that commencement;

then:


(d) an application is taken to have been made to the Commissioner, under section 48-71 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the formation of the GST group took effect; and


(e) if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day:


(i) the group is taken to have been formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 48-5 of that Act as so amended; and

(ii) the entities that jointly applied for approval of the group are taken to be the members of the group; and

(iii) the entity that was nominated, in the application for approval of the group, to be the representative member of the group is taken to be the representative member of the group.

Changes to membership etc. of GST groups applied for, but not approved, before commencement


(5) If:


(a) before the commencement of this item [28 June 2010], the representative member of a GST group applied, in accordance with section 48-70 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to:


(i) approve another entity as an additional member of the group; or

(ii) revoke the approval of one of the members of the group as a member of the group; or

(iii) approve another member of the group to replace the representative member of the group; and


(b) the application did not contain a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of the approval or revocation, a date occurring before the date of that commencement; and


(c) the Commissioner:


(i) did not give the approval, or revoke the approval, as requested in the application; and

(ii) did not refuse the application;
before that commencement;

then, on and after that commencement, the group is taken to continue in existence as if:


(d) the Commissioner has been notified, in accordance with section 48-70 of that Act as amended, that the corresponding action referred to in paragraph 48-70(1)(a), (b) or (c) of that Act as so amended has been taken; and


(e) the action took effect on the date of effect specified in the application.


(6) If:


(a) before the commencement of this item [28 June 2010], the representative member of a GST group applied, in accordance with section 48-70 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to:


(i) approve another entity as an additional member of the group; or

(ii) revoke the approval of one of the members of the group as a member of the group; or

(iii) approve another member of the group to replace the representative member of the group; and


(b) the application contained a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of the approval or revocation, a date occurring before the date of that commencement; and


(c) the Commissioner:


(i) did not give the approval, or revoke the approval, as requested in the application; and

(ii) did not refuse the application;
before that commencement;

then:


(d) an application is taken to have been made to the Commissioner, under section 48-71 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the approval or revocation took effect; and


(e) if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day, the group is taken to continue in existence as if:


(i) the Commissioner has been notified, in accordance with section 48-70 of that Act as so amended, that the corresponding action referred to in paragraph 48-70(1)(a), (b) or (c) of that Act as so amended has been taken; and

(ii) the action took effect on that day.

Revocation of approval of GST groups applied for, but revocation not approved, before commencement


(7) If:


(a) before the commencement of this item [28 June 2010], the representative member of a GST group applied, in accordance with section 48-75 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to revoke the approval of the group as a GST group; and


(b) the application did not contain a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of the revocation, a date occurring before the date of that commencement; and


(c) the Commissioner did not revoke the approval as requested in the application, and did not refuse the application, before that commencement;

then, on the date of effect specified in the application, the group is taken to be dissolved as if the Commissioner has been notified, in accordance with section 48-70 of that Act as amended, that the action referred to in paragraph 48-70(1)(d) of that Act as so amended has been taken.


(8) If:


(a) before the commencement of this item [28 June 2010], the representative member of a GST group applied, in accordance with section 48-75 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to revoke the approval of the group as a GST group; and


(b) the application contained a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of the revocation, a date occurring before the date of that commencement; and


(c) the Commissioner did not revoke the approval as requested in the application, and did not refuse the application, before that commencement;

then:


(d) an application is taken to have been made to the Commissioner, under section 48-71 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the revocation took effect; and


(e) if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day, the group is taken to be dissolved as if:


(i) the Commissioner has been notified, in accordance with section 48-70 of that Act as amended, that the action referred to in paragraph 48-70(1)(d) of that Act as so amended has been taken; and

(ii) the action took effect on that day.

Subdivision 48-A - Formation and membership of GST groups    View history reference

48-5  Formation of GST groups  

 View history reference

(1)  

Two or more entities may form a *GST group if:


(a) each of the entities *satisfies the membership requirements of the group; and


(b) each of the entities agrees in writing to the formation of the group; and


(c) one of those entities notifies the Commissioner, in the *approved form, of the formation of the group; and


(d) that entity is nominated, in that notice, to be the *representative member of the group; and


(e) that entity is an *Australian resident.

A group of entities that is so formed is a GST group.

(2)  

 View history reference
If 2 or more entities would *satisfy the membership requirements for the *GST group, the group need not include all those entities.

(3)  

The formation of the *GST group takes effect from the start of the day specified in the notice under paragraph (1)(c) (whether that day is before, on or after the day on which the entities decided to form the group).

(4)  

However, if the notice was given to the Commissioner after the day by which the entity nominated to be the *representative member of the group is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the formation of the *GST group takes effect from the start of:


(a) the day specified in the notice, if that day is approved by the Commissioner under section 48-71; and


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


 



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