Taxation Administration Act 1953

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

Note: See section 3AA .

Chapter 3 - Collection, recovery and administration of other taxes  

PART 3-18 - AUSTRALIAN IIR / UTPR TAX AND AUSTRALIAN DMT TAX  

Division 128 - Extended application of tax laws relating to Australian IIR / UTPR tax and Australian DMT tax  

Subdivision 128-B - Extended application to certain types of entity  

SECTION 128-15   TRUSTS  

Obligations

128-15(1)    
Subject to subsection (2) , if an obligation is imposed under the * Minimum Tax law on a trust, the obligation is imposed on each of the following entities, but may be discharged by any such entity:

(a)    an entity that is the trustee of the trust at the time the obligation arises;

(b)    an entity that is the trustee of the trust at a time that is:

(i) after the obligation arises; and

(ii) before the obligation has been discharged.

Liabilities to pay an amount

128-15(2)    
If an amount is payable under the * Minimum Tax law by a trust, joint and several liability to pay the amount is imposed as set out in the table:

Amounts payable by trusts
Item	Column 1 If the amount is:	Column 2 then the following entities are jointly and severally liable to pay the amount:
1	* Australian IIR / UTPR tax or * Australian DMT tax for a * Fiscal Year	each of the following entities:
		(a)	an entity that is the trustee of the trust at the end of the Fiscal Year;
		(b)	an entity that is the trustee of the trust at a time that is:
			(i)	after the end of the Fiscal Year; and
			(ii)	before the tax has been paid.
2	* general interest charge on the unpaid amount of * Australian IIR / UTPR tax or * Australian DMT tax for a * Fiscal Year	each of the following entities:
		(a)	an entity that is the trustee of the trust at the end of the Fiscal Year;
		(b)	an entity that is the trustee of the trust at a time that is:
			(i)	after the end of the Fiscal Year; and
			(ii)	before the general interest charge has been paid.
3	* shortfall interest charge in relation to a * Fiscal Year	each of the following entities:
		(a)	an entity that is the trustee of the trust at the end of the Fiscal Year;
		(b)	an entity that is the trustee of the trust at a time that is:
			(i)	after the end of the Fiscal Year; and
			(ii)	before the shortfall interest charge has been paid.

Commissioner has direct access to trust assets

128-15(3)    
For the purpose of ensuring the payment of an amount payable by an entity under this section in relation to a liability of a trust, the Commissioner has the same remedies against the property of the trust as the Commissioner would have against the property of the entity.

Right of indemnity

128-15(4)    
An entity that pays an amount of a liability it has under this section is entitled to be indemnified out of the assets of the trust for the liability.

Offences

128-15(5)    
Any offence against the * Minimum Tax law that is committed by a trust is taken to have been committed by the trustee of the trust, or, if the trust has more than one trustee, by each of the trustees.

128-15(6)    
In a prosecution of an entity for an offence that the entity is taken to have committed because of subsection (5) , it is a defence if the entity proves that the entity:

(a)    did not aid, abet, counsel or procure the relevant act or omission; and

(b)    was not in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the entity).

Note 1:

The defence in subsection (6) does not apply in relation to offences under Part 2.4 of the Criminal Code .

Note 2:

A defendant bears a legal burden in relation to the matters in subsection (6) : see section 13.4 of the Criminal Code .