Taxation Administration Act 1953
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Hide history noteNote: See section 3AA .
Chapter 4 - Generic assessment, collection and recovery rulesThis 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.
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