Article 12 - Amendments to or Disbanding of a Tax Group

In a case where any information originally stated in the application changes, or where any member of the Tax Group is no longer eligible to form part of the Group, notification must be given by the Tax Group representative within twenty (20) days of the change taking place.

A removal of a legal Person from the Tax Group or the disbanding of the Tax Group arising due to an event set out in the first Paragraph of this Article will take effect from the date that legal Person is no longer eligible to form part of the Tax Group or from the disbanding date.

Subject to the approval of all group members the Tax Group representative may file an application on behalf of the group to add new members to the group or to remove existing members from the group or to disband the group or to change the Tax Group representative.

Changes to the Tax Group resulting from an application described in the third Paragraph of this Article will take effect from the date the request is made, unless the Authority specifies an alternative effective date.

In cases where one or more members leaves a Tax Group, or the group disbands but any individual member remains eligible to be a Taxable Person in its own right, a new Tax Identification Number will be issued to that member if it had no previous Tax Identification Number before joining the group. In these cases, any such members are not considered to have deregistered, and will be deemed to have a continued registration status.

In cases where one or more members leaves a Tax Group, or the group disbands, and the individual member is not eligible to be a Taxable Person, that Person must deregister, if applicable, with effect from the date it leaves the group or the group is disbanded. Each member of the group remains jointly and severally liable for any tax due upon deregistration and for the rights and obligations of the group when it was a member of the group.

The Authority may issue a notice to the representative of the tax group for the removal of the tax group status with respect to supplies made among the members of the group or for the cancellation of the registration of the tax group, effective from any prior or subsequent date, if the continuation of the tax group results or may result in obtaining tax benefits that conflict with the purpose of the Law or the Regulations. The Authority may also exclude any member of the tax group and notify the representative accordingly, while maintaining the tax group status for the remaining members, if the continued inclusion of that member results or may result in obtaining tax benefits that conflict with the purpose of the Law or the Regulations, or in the event that it is established that the conditions for joining the tax group are not met.^[16]

The Authority may issue a notice to two or more Persons who are not part of any Tax Group, but who are eligible to form one together, that they are considered to be in a Tax Group from any prospective date. Such a notice may only be issued where the registration of each Person as a separate Taxable Person results or will result in the accrual of a tax advantage which is contrary to the purpose of the Law.