Trust Recoupment Tax Assessment Act 1985

SECTION 10   RIGHT OF CONTRIBUTION AND APPORTIONMENT OF LIABILITY  

10(1)   [Right of contribution]  

Where -

(a) the persons included in an eligible beneficiaries class are jointly and severally liable to pay trust recoupment tax on a secondary taxable amount; and

(b) a person included in that eligible beneficiaries class has paid any of that trust recoupment tax;

the person referred to in paragraph (b) may, in a court of competent jurisdiction, recover by way of contribution and as a debt from any of the other persons included in the class such part of the amount paid as the court considers just and equitable.

10(2)   [Apportionment of liability]  

Where proceedings against a person under Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 for recovery of any trust recoupment tax payable on a secondary taxable amount are instituted in any court, the court may -

(a) on the application of the person, join, as co-defendant or as co-defendants in the proceedings, a specified person or specified persons who are included in the eligible beneficiaries class in relation to the secondary taxable amount; and

(b) having regard to -

(i) the amount or value of any benefit that each co-defendant has derived, or might reasonably be expected to derive, being a benefit to which subsection 6(4) applies in relation to the person concerned in relation to the secondary taxable amount; and

(ii) any other relevant circumstances;

determine, on just and equitable grounds, the respective proportions of the amount of the trust recoupment tax that the co-defendants are liable to pay.

10(3)   [``trust recoupment tax'']  

In this section ``trust recoupment tax'' includes late payment tax and penalty tax.