Insolvency (Tax Priorities) Legislation Amendment Act 1993 (32 of 1993)

Part 4   AMENDMENTS OF THE CORPORATIONS LAW

26   Transaction not voidable as against certain persons

Section 588FG of the Corporations Law is amended by adding at the end the following subsections:

"(3) For the purposes of paragraph (2) (c), if an amount has been paid or applied towards discharging to a particular extent a liability to pay tax, the discharge is valuable consideration provided:

(a) by the person to whom the tax is payable; and

(b) under any transaction that consists of, or involves, the payment or application.

"(4) In subsection (3):

'tax' means tax (however described) payable under a law of the Commonwealth or of a State or Territory, and includes, for example, a levy, a charge, and municipal or other rates.

"(5) For the purposes of paragraph (2) (c), if an amount has been paid or applied towards discharging to a particular extent a liability to the Commonwealth, or to the Commissioner of Taxation, that arose under or because of an Act of which the Commissioner has the general administration, the discharge is valuable consideration provided by the Commonwealth, or by the Commissioner, as the case requires, under any transaction that consists of, or involves, the payment or application.

"(6) Subsections (3) and (5):

(a) are to avoid doubt and are not intended to limit the cases where a person may be taken to have provided valuable consideration under a transaction; and

(b) apply to an amount even if it was paid or applied before the commencement of this subsection.".