1.89 A table in sections 9-39 of the GST Act, which sets out specific rules for taxable deliveries, is amended in light of amendments to Division 110 that make certain transactions related to indirect tax-sharing agreements a tax-free benefit. Similar changes are made to the special rules checklist in Section 37-1 of the GST Act. [Annex 1, points 46-49] b) is responsible for the amounts payable on the basis of GST revenues due at the time of their membership in the GST group (tax periods 2, 3 and 4), but only by the amount of their contributions , set for these periods under the indirect tax allocation agreement. 1.54 For more details on the operation of indirect tax-sharing agreements, see Chart 1.2, which illustrates the workings of indirect tax-sharing agreements with respect to the indirect tax liabilities of a GST group. Companies A, B, C, D and E formed a GST joint venture on February 5, 2011. A is designated as a joint venture operator and is therefore responsible for the indirect tax debts of the joint venture GST, but B, C, D and E are jointly responsible for any amount to be paid by the operator of the joint venture under an indirect tax law (as far as the amount relates to the joint venture). The joint venture GST applies a monthly tax period for the transfer of its indirect tax debts. On April 10, 2011, B, C, D and E entered into an indirect tax-sharing agreement with Company A for the April 2011 tax period. On May 21, 2011, A is late for payment of the amounts payable for the April 2011 tax period for the indirect tax debts of the joint venture GST.
Companies B, C, D and E are jointly responsible for the indirect tax debts of the joint venture GST. However, since they have an indirect tax participation agreement valid for the taxable period, their commitments are limited to the amounts of their respective contributions, set in accordance with the indirect tax-sharing agreement. Unit A remains fully responsible for the total amounts to be paid for the JOINT VENTURE GST. 1.57 An indirect tax participation agreement may cover more than one participant in a joint venture, but the joint venture operator of the joint venture GST cannot enter into more than one indirect tax participation agreement for the same tax period. [Calendar 1, point 58, subsection 444-80 (1E)] For the GST groups, the representative member of the GST group is responsible for the GST debt of the entire group. In addition, in accordance with Section 444-90 of Schedule 1 of the Tax Administration Act, all members of a GST group are jointly responsible for the GST payment to be paid by the GST group. However, the representative member and other members of the group may enter into an indirect tax-sharing agreement to limit a member`s liability for joint and several liability with respect to GST 1.53. A subsequent payment from a member to the Commissioner will reduce its contribution and the indirect tax debt of the joint venture GST at the payment level. However, this payment does not affect the Commissioner`s ability to recover from other participants the outstanding debts of the joint venture at the amount of their contributions. [Annex 1, point 58, para.
444-80(1A) (e)] 1.45 The amendments allow participants of a GST joint venture and members of a GST group to enter into an indirect tax-sharing agreement with their joint venture or representative member on their indirect tax commitments.