Tax Laws Amendment (Transfer of Provisions) Act 2010 (79 of 2010)

Schedule 1   Collection and recovery of tax

Part 1   Main amendments

Taxation Administration Act 1953

9   At the end of Division 255 in Schedule 1

Add:

Subdivision 255-D - Security deposits

Table of sections

255-100 Commissioner may require security deposit

255-105 Notice of requirement to give security

255-110 Offence

255-100 Commissioner may require security deposit

(1) The Commissioner may require you to give security for the due payment of an existing or future*tax-related liability of yours if:

(a) the Commissioner has reason to believe that:

(i) you are establishing or*carrying on an*enterprise in Australia; and

(ii) you intend to carry on that enterprise for a limited time only; or

(b) the Commissioner reasonably believes that the requirement is otherwise appropriate, having regard to all relevant circumstances.

Note: A requirement to give security under this section isnot a tax-related liability. As such, the collection and recovery provisions in this Part do not apply to it.

(2) The Commissioner may require you to give the security:

(a) by way of a bond or deposit (including by way of payments in instalments); or

(b) by any other means that the Commissioner reasonably believes is appropriate.

(3) The Commissioner may require you to give security under this section:

(a) at any time the Commissioner reasonably believes is appropriate; and

(b) as often as the Commissioner reasonably believes is appropriate.

Example: The Commissioner may require additional security if he or she reasonably believes that the original security requirement underestimated the amount of the likely tax-related liability.

255-105 Notice of requirement to give security

Commissioner must give notice of requirement to give security

(1) If the Commissioner requires you to give security under section 255-100, he or she must give you written notice of the requirement.

Content of notice

(2) The notice must:

(a) state that you are required to give the security to the Commissioner; and

(b) explain why the Commissioner requires the security; and

(c) set out the amount of the security; and

(d) describe the means by which you are required to give the security under subsection 255-100(2); and

(e) specify the time by which you are required to give the security; and

(f) explain how you may have the Commissioner's decision to require you to give the security reviewed.

(3) To avoid doubt, a single notice may relate to security for the payment of 2 or more existing or future*tax-related liabilities, but must comply with subsection (2) in relation to each of them.

When notice is given

(4) Despite section 29 of theActs Interpretation Act 1901, a notice under subsection (1) is taken to be given at the time the Commissioner leaves or posts it.

Note: Section 28A of theActs Interpretation Act 1901may be relevant to giving a notice under subsection (1).

Miscellaneous

(5) A failure to comply with this section does not affect the validity of the requirement to give the security under section 255-100.

255-110 Offence

You commit an offence if:

(a) the Commissioner requires you to give security under section 255-100; and

(b) you fail to give that security as required.

Penalty: 100 penalty units.