SALES TAX ASSESSMENT ACT 1992 (Repealed)

S 123 repealed by No 179 of 1999, s 3 and Sch 2 item 68, effective 22 December 1999. S 123 formerly read:

OBLIGATIONS OF LIQUIDATOR OR RECEIVER  

123(1) 

This section applies to a person ( ``the asset holder'' ):

(a)  who becomes a liquidator of a company; or

(b)  in the capacity of a receiver, or a receiver and manager, for debenture holders of a company, takes possession of assets of the company.

123(2) 

The asset holder must, within 14 days after becoming liquidator or taking possession of the assets, give written notice of that fact to the Commissioner.

123(3) 

The Commissioner must as soon as practicable notify the asset holder of the amount ( ``the notified sales tax amount'' ) that the Commissioner considers is enough to cover any sales tax that the company is liable to pay or may become liable to pay.

123(4) 

The asset holder must not, without the Commissioner's permission, part with any of the company's assets before receiving the notice from the Commissioner. However, this prohibition does not prevent the asset holder from parting with the company's assets to pay debts of the company that are not ordinary debts.

123(5) 

After receiving the Commissioner's notice, the asset holder must set aside, out of the assets available for paying the company's ordinary debts, assets with a value calculated using the following formula:

              +--                                 --+
Total value   |     Notified sales tax amount       |
of assets     | ----------------------------------- |
available     | Notified  +  Notified  +  Sum of    |
to pay     x  | sales tax     other      company's  |
ordinary      |  amount       taxes       other     |
debts         |                          ordinary   |
              |                            debts    |
              +--                                 --+
                

In the formula, ``Notified other taxes'' means the total of any amounts that the Commissioner has notified in relation to the company under a section of another Act that corresponds to this section.

123(6) 

The asset holder is liable as trustee to pay sales tax payable by the company, to the extent of the value of assets that the asset holder is required to set aside.

123(7) 

If the asset holder, without reasonable excuse, contravenes this section or fails as trustee to pay the sales tax for which the asset holder is liable under subsection (6), the asset holder:

(a)  is personally liable to pay the sales tax, to the extent of the value of the assets that the asset holder is required to set aside under subsection (5); and

(b)  is guilty of an offence punishable on conviction by a fine of up to $1,000.

123(8) 

If 2 or more persons are liquidators of the company, or take possession of assets of the company, the obligations and liabilities under this section apply to all those persons jointly.

123(9) 

This section does not reduce any obligation or liability of the asset holder that arises outside this section.

123(10) 

In this section:

``ordinary debt'' means a debt that is unsecured and is not required, by a law of the Commonwealth or of a State or Territory, to be paid in priority to some or all of the other debts of the company;

``sales tax'' includes penalty under Part 9 and late-payment penalty.