06 July 2010

Indirect tax sharing agreements

Authors: Jane Trethewey, Richard Gelski, Rod Cox

From 1 July 2010, members of a GST group and GST joint venture can enter into an indirect tax sharing agreement (ITSA). In summary, an ITSA will: limit the joint and several liability of each member over the group’s or joint venture’s liability that would otherwise arise; enable a member to leave clear of group liabilities that arise in the last tax period that they were a member; cover the indirect tax liabilities being GST, wine tax, luxury car tax and the claiming of fuel tax credits; need to meet some minimum form requirements which are expected to be similar to the form requirements applying to tax sharing agreements (TSA) in the tax consolidated group context. While similar to a TSA, an ITSA will need to reflect the specific operation of the indirect tax liabilities it covers. The allocation methodologies will be different to the allocation methodologies for income tax. The attached article explores these aspects of ITSA and how it could effect you.

Download: Indirect Tax Sharing Agreements - Final.pdf (83 Kb)

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