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-D - From agent winding up business for foreign resident principal  

SECTION 260-105   OBLIGATION OF AGENT WINDING UP BUSINESS FOR FOREIGN RESIDENT PRINCIPAL  

260-105(1)    
This Subdivision applies to an agent whose principal:

(a) is a foreign resident; and

(b) has instructed the agent to wind up so much of the principal ' s business as is carried on in Australia.

260-105(2)    
Within 14 days after receiving the instructions, the agent must give written notice of that fact to the Commissioner.

260-105(3)    
The Commissioner must, as soon as practicable after receiving the notice, notify the agent of the amount (the notified amount ) that the Commissioner considers is enough to discharge any *outstanding tax-related liabilities that the principal has when the notice is given.

260-105(4)    
Before receiving the Commissioner ' s notice, the agent must not, without the Commissioner ' s permission, part with any of the principal ' s assets that are available for discharging the *outstanding tax-related liabilities.

260-105(5)    
After receiving the notice, the agent must set aside:

(a) out of the assets available for discharging the *outstanding tax-related liabilities, assets to the value of the notified amount; or

(b) all of the assets so available, if their value is less than the notified amount.

260-105(6)    
The agent must, in that capacity, discharge the *outstanding tax-related liabilities, to the extent of the value of the assets that the agent is required to set aside.

260-105(7)    
The agent is personally liable to discharge the liabilities, to the extent of that value, if the agent contravenes this section.