Taxation Administration Act 1996

The Chief Commissioner may require any of the following persons instead of the taxpayer to pay tax that is payable but remains unpaid—

a person by whom any money is due or accruing or may become due to the taxpayer,

a person who holds or may subsequently hold money for or on account of the taxpayer,

a person who holds or may subsequently hold money on account of some other person for payment to the taxpayer,

a person having authority from some other person to pay money to the taxpayer.

The Chief Commissioner’s requirement is to be made by notice in writing.

A copy of the notice must be served on the taxpayer.

The amount of money required to be paid to the Chief Commissioner is—

if the amount of the money so held or due or authorised to be paid does not exceed the amount payable by the taxpayer to the Chief Commissioner—all the money, or

if the amount of the money exceeds the amount so payable—sufficient money to pay the amount so payable.

The money must be paid to the Chief Commissioner on receipt of the notice, or when the money is held by the person and becomes due to the taxpayer, or after such period (if any) as may be specified by the Chief Commissioner, whichever is the later.

A person subject to a requirement of the Chief Commissioner under this section must comply with the requirement.

A person who makes a payment in accordance with this section is taken to be acting under the authority of the taxpayer and of all other persons concerned and is indemnified by this section in respect of the payment.

If, after a person is given a notice under this section by the Chief Commissioner, the whole or a part of the amount is paid by another person, the Chief Commissioner must promptly notify the person to whom the notice is given of the payment and the notice is taken to be amended accordingly.

In this section, tax includes a judgment debt and costs in respect of such an amount.