INCOME TAX ASSESSMENT ACT 1997 - SECT 721.5 Object of this Division

INCOME TAX ASSESSMENT ACT 1997 - SECT 721.5

    The object of this Division is to secure the payment of certain tax liabilities of the * head company of a * consolidated group where the head company fails to meet all of those liabilities by the time they become due and payable. Accordingly:

  (a)   if a relevant liability is not covered by a tax sharing agreement--this Division provides for a process to make certain entities that were * subsidiary members of the group for at least part of the period to which each tax liability relates jointly and severally liable with the head company for those liabilities; or

  (b)   if a relevant liability is covered by a tax sharing agreement--this Division:

  (i)   provides for a process to make each of those entities liable for the amount determined under the agreement in relation to the liability; but

  (ii)   exempts an entity from a liability determined under the agreement if it leaves the group in certain circumstances.