Collection of tax from third parties
43 Collection of tax from third parties
The Commissioner may require any of the following persons instead of the taxpayer to pay tax that is payable but remains unpaid:
a person from whom 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 Commissioner's requirement is to be made by written notice served on the person.
A copy of the notice must also be served on the taxpayer.
The amount that the person is required by the notice to pay to the
Commissioner is so much of the money referred to in subsection (1) as is sufficient to pay the tax remaining unpaid, or, if the money is insufficient, all of it.
The money must be paid to the Commissioner on receipt of the notice, or when the money is held by the person, or after such period (if any) as may be specified by the Commissioner, whichever is the later or latest.
A person subject to a requirement of the Commissioner under this section must comply with the requirement. Maximum penalty: Maximum penalty: $10 000.
A person who makes a payment in accordance with this section is to be taken to be acting under the authority of the taxpayer and of all other persons concerned and is entitled to indemnity from the taxpayer in respect of the payment.
If, after a person is given a notice under this section by the
Commissioner, the whole or a part of the tax is paid by another person, the
Commissioner must, by written notice, advise the person of the payment and cancel the prior notice or amend it accordingly.
An amount that is required to be paid by a person under this section but remains unpaid may be recovered by the Commissioner from the person as a debt.
In this section—
tax means an amount that is assessed as being payable as tax, and includes a judgement debt and costs in respect of such an amount.
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