(1) A supply made to a * TSA contributing member of a * consolidated group or a * MEC group is not a * taxable supply if:
(a) the supply is a release from an obligation relating to a * contribution amount in relation to a * group liability of the * head company of the group; and
Example: The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined.
(b) the TSA contributing member has, for the purposes of subsection 721-30(3) of the * ITAA 1997, left the group clear of the group liability.
Note: See section 721- 35 of the ITAA 1997 for when a TSA contributing member has left a group clear of the group liability.
(2) This section has effect despite section 9-5 (which is about what are taxable supplies).