Document background
The Tax Sharing Agreement Template is designed for Australian corporate groups operating under the tax consolidation regime, which allows them to be treated as a single entity for income tax purposes. This document becomes essential when a corporate group elects to consolidate for tax purposes, as it provides the legal framework for allocating tax liabilities among group members. The template ensures compliance with Australian taxation laws and ATO requirements, protecting subsidiary members from joint and several liability for group tax obligations. It includes comprehensive provisions for calculation methodologies, payment arrangements, and member obligations, addressing both current and future needs of the consolidated group. The Tax Sharing Agreement Template is particularly crucial for corporate restructures, acquisitions, or when establishing new consolidated groups, as it provides clarity and certainty in tax liability allocation.
