Taxation Administration Act 1953

This Subdivision applies to a person who becomes a liquidator of a company.

Within 14 days after becoming liquidator, the liquidator must give written notice of that fact to the Commissioner.

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.

The liquidator must not, without the Commissioner’s permission, part with any of the company’s assets before receiving the Commissioner’s notice.

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:

the *outstanding tax‑related liabilities;

any debts of the company which:

are unsecured; and

are not required, by an *Australian law, to be paid in priority to some or all of the other debts of the company.

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:

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.

The liquidator is personally liable to discharge the liabilities, to the extent of that value, if the liquidator contravenes this section.