INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VIII - MISCELLANEOUS  

SECTION 259   CONTRIBUTION FROM JOINT TAXPAYERS  

259(1)   [Recovery of contribution]  

Where 2 or more persons are jointly liable to pay tax they shall each be liable for the whole tax, but any of them who has paid the tax in respect of any of the taxable income:

(a) shall be entitled to receive by way of contribution from any other of such persons a sum bearing the same proportion to the tax as that other person's share of the taxable income bears to the whole taxable income; and

(b) may recover that sum from that other person in any court of competent jurisdiction; or may retain or deduct that sum out of any money in his hands belonging or payable to that other person.

259(2)   [``tax'']  

In subsection (1), ``tax'' includes the general interest charge under section 163AA , section 170AA , subsection 204(3) , subsection 221AZMAA(1) , subsection 221AZP(1) , subsection 221YD(3) or section 221YDB and additional tax under Part VII .

Note 1:

The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .

Note 2:

Subsection 8AAB(4) of that Act lists the provisions that apply the charge.

259(3)   Application.  

This section does not apply in relation to:

(a) a liability for tax that arises on or after 1 July 2000; or

(b) any other amount of liability that arises on or after that day, and that is taken to be tax for the purposes of this section because of any provision of this or any other Act.

Example:

Subsection 163A(8) provides that in section 259 tax includes a penalty under section 163A . This section therefore does not apply in relation to such a penalty that arises on or after 1 July 2000.

Note:

For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about contribution from joint-taxpayers), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .