Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 4 - Generic assessment, collection and recovery rules  

PART 4-15 - COLLECTION AND RECOVERY OF TAX-RELATED LIABILITIES AND OTHER AMOUNTS  

Division 260 - Special rules about collection and recovery  

Subdivision 260-B - From liquidator  

SECTION 260-45   LIQUIDATOR ' S OBLIGATION  

260-45(1)    
This Subdivision applies to a person who becomes a liquidator of a company.

260-45(2)    
Within 14 days after becoming liquidator, the liquidator must give written notice of that fact to the Commissioner.

260-45(3)    
The Commissioner must, as soon as practicable, notify the liquidator of the amount (the notified amount ) that the Commissioner considers is enough to discharge any *outstanding tax-related liabilities that the company has when the notice is given.

260-45(4)    
The liquidator must not, without the Commissioner ' s permission, part with any of the company ' s assets before receiving the Commissioner ' s notice.

260-45(5)    
However, subsection (4) does not prevent the liquidator from parting with the company ' s assets to pay debts of the company not covered by either of the following paragraphs:

(a) the *outstanding tax-related liabilities;

(b) any debts of the company which:

(i) are unsecured; and

(ii) are not required, by an *Australian law, to be paid in priority to some or all of the other debts of the company.

260-45(6)    
After receiving the Commissioner ' s notice, the liquidator must set aside, out of the assets available for paying amounts covered by paragraph (5)(a) or (b) (the ordinary debts ), assets with a value calculated using the following formula:

where:

amount of remaining ordinary debts
means the sum of the company ' s ordinary debts other than the *outstanding tax-related liabilities.

260-45(7)    
The liquidator must, in his or her capacity as liquidator, discharge the *outstanding tax-related liabilities, to the extent of the value of the assets that the liquidator is required to set aside.

260-45(8)    
The liquidator is personally liable to discharge the liabilities, to the extent of that value, if the liquidator contravenes this section.