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 18-160   RIGHTS OF INDEMNITY AND CONTRIBUTION  

18-160(1)  
This section applies if an individual must pay * PAYG withholding non-compliance tax as mentioned in section 18-125 or 18-135 because a company did not pay an amount to the Commissioner as mentioned in paragraph 18-125(1)(c) or 18-135(1)(c) .

18-160(2)  
The individual has the same rights (whether by way of indemnity, subrogation, contribution or otherwise) against the company or anyone else as if:


(a) the individual had made a payment equal to the amount of the * PAYG withholding non-compliance tax under a guarantee of the liability of the company to pay the amount to the Commissioner; and


(b) under the guarantee:


(i) the individual; and

(ii) every individual to whom subsection (3) applies;
were jointly and severally liable as guarantors (but only, in the case of an individual to whom subparagraph (ii) of this paragraph applies, to the extent to which subsection (3) applies to the individual); and


(c) any credit to which the individual mentioned in subsection (1) is entitled under section 18-170 or 18-175 in relation to the amount of PAYG withholding non-compliance tax were a repayment of the payment mentioned in paragraph (a) of this subsection.

18-160(3)  
This subsection applies to an individual to the extent that:


(a) the individual was a director (within the meaning of the Corporations Act 2001 ) of the company on the day (the payment day ) on or by which the company was required to pay the amount mentioned in subsection (1) to the Commissioner; or


(b) both 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.

18-160(4)  
However, subsection (3) does not apply to an individual to the extent that the amount of the * PAYG withholding non-compliance tax the individual must pay in relation to the company for the income year as mentioned in section 18-125 is reduced under section 18-130 .




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