Common use of Clear exit Clause in Contracts

Clear exit. An ITSA contributing member is not liable to pay to the ATO its contribution amount if the member left the group clear of the group liability. A clear exit is achieved if: a. the liability for a tax period was covered by the ITSA; b. the member leaves before it is required to give the Commissioner a GST return for that tax period; and ▇. the exiting member pays to the representative member a clear exit payment before the day on which the representative member is required to give to the Commissioner a GST return for that period. A clear exit payment will be the reasonable estimate of the exited member’s contribution amount in relation to that tax period. Our ITSA has clear exit provisions to detail with this issue.