Taxation Administration Act 2001

This section applies if—

under a tax law, a debt is payable by a taxpayer; and

the commissioner reasonably believes a person (the garnishee)—

holds or may receive an amount for or on account of the taxpayer; or

is liable or may become liable to pay an amount to the taxpayer; or

has authority to pay an amount to the taxpayer.

Subsection (1)(b) applies even though the taxpayer’s entitlement to the amount may be subject to unfulfilled conditions.

The commissioner may, by written notice given to the garnishee (the garnishee notice), require the garnishee to pay to the commissioner by a stated date a stated amount (the garnishee amount).

Without limiting subsection (3), the garnishee notice may require the garnishee to pay to the commissioner an amount out of each payment the garnishee is or becomes liable, from time to time, to make to the taxpayer.

However, if, on the date for payment under the garnishee notice, the garnishee amount is not held for, or is not liable to be paid to, the taxpayer by the garnishee, the notice has effect as if the date for payment were immediately after the date the amount is held for, or is liable to be paid to, the taxpayer by the garnishee.

The garnishee amount must not be more than the taxpayer’s debt.

The garnishee must comply with the garnishee notice unless the garnishee has a reasonable excuse.Maximum penalty—40 penalty units.

The commissioner must give to the taxpayer—

a copy of the garnishee notice; and

details in writing of the taxpayer’s debt to which the notice relates.