A New Tax System (Tax Administration) Act 1999 (179 of 1999)

Schedule 11   PAYG withholding consequential amendments

Income Tax Assessment Act 1936

65   After section 222AOB

Insert:

222AOBA Directors to cause company to remit or to go into voluntary administration or liquidation - non-cash benefits

(1) The persons who are directors of the company on the day (the benefit day ) on which the benefit or benefits (referred to in paragraph 222AOA(1)(c)) are provided must cause the company to do at least one of the following before the end of the benefit day:

(a) comply with Subdivision 16-B in Schedule 1 to the Taxation Administration Act 1953 in relation to each benefit provided on the benefit day;

(b) make an agreement with the Commissioner under section 222ALA in relation to the company's liability under that Subdivision in respect of each such benefit;

(c) appoint an administrator of the company under section 436A of the Corporations Law;

(d) begin to be wound up within the meaning of that Law.

(2) This section is complied with when:

(a) the company complies as mentioned in paragraph (1)(a); or

(b) the company makes an agreement as mentioned in paragraph (1)(b); or

(c) an administrator of the company is appointed under section 436A, 436B or 436C of the Corporations Law; or

(d) the company begins to be wound up within the meaning of that Law;

whichever first happens, even if the directors did not cause the event to happen.

(3) If this section is not complied with before the end of the benefit day, the persons who are directors of the company on that day continue to be under the obligation imposed by subsection (1) until this section is complied with.


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).