TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 18 - Recipient ' s entitlements and obligations  

Subdivision 18-D - Directors etc. of non-complying companies  

PAYG withholding non-compliance tax

SECTION 18-125   DIRECTORS OF NON-COMPLYING COMPANIES  

Liability to pay PAYG withholding non-compliance tax

18-125(1)  
An individual must pay * PAYG withholding non-compliance tax in relation to a company for an income year of the individual if:


(a) the individual is or has been a director (within the meaning of the Corporations Act 2001 ) of the company; and


(b) the company was required to pay to the Commissioner under subsection 16-70(1) in this Schedule amounts:


(i) the company withheld from * withholding payments the company made to any entities during the income year of the individual; and

(ii) to which subsection (2) applies; and


(c) the company did not pay the total of those amounts to the Commissioner on or before the last day (the non-compliance day ) on or before which the company was required to pay any of those amounts to the Commissioner in accordance with subsection 16-70(1) ; and


(d) a credit to which the individual is entitled under section 18-15 is attributable to an extent to * amounts withheld by the company under Division 12 from withholding payments made to the individual during the income year of the individual.

Note:

For the purposes of paragraph (1)(d), it does not matter whether the company pays the amounts withheld from the withholding payments made to the individual to the Commissioner under subsection 16-70(1) .

18-125(2)  
This subsection applies to * amounts withheld that the company was required to pay to the Commissioner on or before a particular day (the payment day ) under subsection 16-70(1) , if:


(a) both of the following subparagraphs apply:


(i) the individual was a director (within the meaning of the Corporations Act 2001 ) of the company on the payment day;

(ii) the company did not pay the total of those amounts to the Commissioner in accordance with subsection 16-70(1) on or before the payment day; or


(b) all of the following subparagraphs apply:


(i) the individual became a director of the company after the payment day;

(ii) the individual was still a director of the company 30 days after becoming a director;

(iii) the company did not pay the total of those amounts to the Commissioner in accordance with subsection 16-70(1) on or before the last of those 30 days.
Amount of tax

18-125(3)  
The amount of the * PAYG withholding non-compliance tax the individual must pay is the lesser of:


(a) the extent of the credit mentioned in paragraph (1)(d); and


(b) the total amount the company did not pay to the Commissioner as mentioned in paragraph (1)(c).




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