Liability of principal contractor for payroll tax payable in respect of employees of subcontractor
17 Liability of principal contractor for payroll tax payable in respect of employees of subcontractor
This Part applies if—
a person (referred to in this Part as the principal contractor) has entered into a contract for the carrying out of work by another person (referred to in this Part as the subcontractor), and
employees of that subcontractor (referred to in this Part as the relevant employees) are engaged in carrying out the work, and
the work is carried out in connection with a business undertaking of the principal contractor.
If, at the end of the period of 60 days after the end of a financial year, any payroll tax payable by the subcontractor in respect of wages paid or payable to the relevant employees during the financial year for work done in connection with the contract has not been paid, the principal contractor is jointly and severally liable with the subcontractor for the payment of the payroll tax.
Section 45 of the Taxation Administration Act 1996 (subsection (3) excepted) applies to an amount payable under this clause.
Note.
Section 44 of the Taxation Administration Act 1996 provides that the amount of tax payable may be recovered by the Chief Commissioner as a debt to the Chief Commissioner. Section 45 of the Taxation Administration Act 1996 provides that if parties are jointly and severally liable for the payment of an amount under a taxation law, the Chief Commissioner may recover the amount payable from any of the parties. It also provides for the recovery of interest, penalty tax and costs from the parties who are jointly and severally liable for the payment of the tax.
This Act’s bill:Explanatory memorandumSecond reading speech
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