Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 84.15

             (1)  For the purposes of section 84-5, if an entity:

                     (a)  * carries on an * enterprise in Australia; and

                     (b)  also carries on that or another enterprise outside Australia;

then:

                     (c)  the transfer of anything to the enterprise in Australia from the enterprise outside Australia; or

                     (d)  the doing of anything for the enterprise in Australia by the enterprise outside Australia;

is taken to be a supply that is not * connected with Australia.

Example:    An entity acquires, through a place of business it has overseas, the right to exploit a particular copyright in Australia. That right is then transferred to a place of business that the entity has in Australia.

                   Under this section, the transfer is taken to be a supply that is not connected with Australia and, if the other requirements of section 84-5 are satisfied, the transfer is a taxable supply.

             (2)  If the transfer is a transfer of the services of an employee, this section does not apply to the transfer to the extent that any payments that:

                     (a)  are made from the * enterprise in Australia to the enterprise outside Australia; and

                     (b)  relate to the transfer;

would be * withholding payments if they were payments from the enterprise in Australia to the employee.