Deed of Indemnity
If an indemnity is approved, the Deputy Commissioner of Taxation (DCT) will draft a Deed of Indemnity. The DCT will not be liable to pay any amounts until a Deed of Indemnity agreement has been executed.
If the terms of the Deed of Indemnity agreement cannot be agreed upon by the parties, the DCT's offer to provide an indemnity will be withdrawn.
It is the DCT's primary responsibility, pursuant to section 44 of the FMAA, to ensure the affairs of the ATO are managed in a way that promotes the efficient, effective, economical and ethical use of Commonwealth resources and in a manner which is not inconsistent with any policies of the Commonwealth. If the DCT is not satisfied that these requirements have been fulfilled before executing the Deed of Indemnity, then the DCT cannot legally execute it.
Information for insolvency practitioners about the requirements the Deputy Commissioner of Taxation (DCT) has regarding drafting and executing a Deed of Indemnity, once an indemnity has been approved.