Corporations Act 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.7B - RECOVERING PROPERTY OR COMPENSATION FOR THE BENEFIT OF CREDITORS OF INSOLVENT COMPANY  

Note: This Part applies to a sub-fund of a CCIV in a modified form: see Division 3 of Part 8B.6 (for provisions relating to Division 2B ), Division 5 of Part 8B.6 (for provisions relating to Divisions 2 and 2A ) and Division 6 of Part 8B.6 (for provisions relating to Divisions 3 , 4 , 5 and 6 ).

Division 2 - Voidable transactions  

Subdivision E - Various rules about voidable transactions  

SECTION 588FGA   DIRECTORS TO INDEMNIFY COMMISSIONER OF TAXATION IF CERTAIN PAYMENTS SET ASIDE  

588FGA(1)    

This section applies if the court makes an order under section 588FF , or ASIC makes an order under section 588FGAA , against the Commissioner of Taxation because of the payment of an amount in respect of a liability:

(a) under any of the following provisions:

(i) former section 220AAE , 220AAM or 220AAR of the Income Tax Assessment Act 1936 ;

(ii) former section 221F (except subsection 221F(12) ), former section 221G (except subsection 221G(4A) ) or former section 221P of the Income Tax Assessment Act 1936 ;

(iii) former subsection 221YHDC(2) of the Income Tax Assessment Act 1936 ;

(iv) former subsection 221YHZD(1) or (1A) of the Income Tax Assessment Act 1936 ;

(v) former subsection 221YN(1) of the Income Tax Assessment Act 1936 ;

(vi) section 222AHA of the Income Tax Assessment Act 1936 ;

(vii) Subdivision 16-B in Schedule 1 to the Taxation Administration Act 1953 ; or

(b) to pay the amount of an estimate of unpaid superannuation guarantee charge under Division 268 in Schedule 1 to the Taxation Administration Act 1953 .

588FGA(2)    
Each person who was a director of the company when the payment was made is liable to indemnify the Commissioner in respect of any loss or damage resulting from the order.

588FGA(3)    
An amount payable to the Commissioner under subsection (2):

(a) is a debt due to the Commonwealth and payable to the Commissioner; and

(b) may be recovered in a court of competent jurisdiction by the Commissioner, or a Deputy Commissioner of Taxation, suing in his or her official name.

588FGA(4)    
The court may, in the proceedings in which it made the order against the Commissioner, order a person to pay to the Commissioner an amount payable by the person under subsection (2).

588FGA(5)    
A person who pays an amount under subsection (2) has the same rights:

(a) whether by way of indemnity, subrogation, contribution or otherwise; and

(b) against the company or anyone else;

as if the payment had been made under a guarantee:

(c) of the liability referred to in subsection (1); and

(d) under which the person and every other person who was a director of the company as mentioned in subsection (2) were jointly and severally liable as guarantors.