Taxation Administration Act 1953

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

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 18 - Recipient ' s entitlements and obligations  

Subdivision 18-D - Directors etc. of non-complying companies  

PAYG withholding non-compliance tax

SECTION 18-130   DIRECTORS OF NON-COMPLYING COMPANIES - TAX REDUCED IN CERTAIN CIRCUMSTANCES  

18-130(1)    
The amount of the * PAYG withholding non-compliance tax the individual must pay as mentioned in section 18-125 is reduced if the Commissioner gives a notice to the individual under this section.

Notice

18-130(2)    
The Commissioner must give a written notice to the individual on a day (the reduction notice day ) (whether before, on or after the day (if any) the Commissioner gives the individual the relevant notice under section 18-140 ), if the Commissioner is satisfied that:

(a) because of illness or for some other good reason, it would have been unreasonable to expect the individual to take part, and the individual did not take part, in the management of the company at any time during the period:

(i) starting on a day on or by which the company was required to pay any of the total mentioned in paragraph 18-125(1)(c) to the Commissioner under subsection 16-70(1) ; and

(ii) ending on the reduction notice day; or

(b) the individual took all reasonable steps to ensure that one of the following happened:

(i) the directors (within the meaning of the Corporations Act 2001 ) of the company caused the company to pay the total of the amounts mentioned in paragraph 18-125(1)(c) to the Commissioner;

(ii) the directors caused an administrator of the company to be appointed under section 436A , 436B or 436C of the Corporations Act 2001 ;

(iia) the directors caused a small business restructuring practitioner for the company to be appointed under section 453B of that Act;

(iii) the directors caused the company to begin to be wound up (within the meaning of that Act);

or there were no reasonable steps the individual could have taken to ensure that any of those things happened.

18-130(3)    
In determining what are reasonable steps for the purposes of paragraph (2)(b), the Commissioner must have regard to:

(a) when, and for how long, the individual was a director and took part in the management of the company; and

(b) all other relevant circumstances.

Amount of reduction

18-130(4)    
The amount of the reduction is the amount stated in the notice.

18-130(5)    
In determining the amount to state in the notice, the Commissioner must have regard to:

(a) in a case to which paragraph (2)(a) applies - when, and for how long, the individual could not have been expected to take part, and did not take part, in the management of the company; and

(b) in a case to which paragraph (2)(b) applies - when, and for how long, the individual was a director and took part in the management of the company; and

(c) in either case - what is fair and reasonable in the circumstances.

Effect of reduction

18-130(6)    
The amount of the * PAYG withholding non-compliance tax the individual must pay is treated as always having been that amount as reduced under this section.