TAXATION ADMINISTRATION ACT 1953
Note: See section 3AA .Chapter 4 - Generic assessment, collection and recovery rules
This Subdivision applies if any of the following amounts (the debt ) is payable to the Commonwealth by an entity (the debtor ) (whether or not the debt has become due and payable):
(a) an amount of a *tax-related liability;
(b) a judgment debt for a *tax-related liability;
(c) costs for such a judgment debt;
(d) an amount that a court has ordered the debtor to pay to the Commissioner following the debtor ' s conviction for an offence against a *taxation law. Commissioner may give notice to an entity 260-5(2)
The Commissioner may give a written notice to an entity (the third party ) under this section if the third party owes or may later owe money to the debtor. Third party regarded as owing money in these circumstances 260-5(3)
The third party is taken to owe money (the available money ) to the debtor if the third party:
(a) is an entity by whom the money is due or accruing to the debtor; or
(b) holds the money for or on account of the debtor; or
(c) holds the money on account of some other entity for payment to the debtor; or
(d) has authority from some other entity to pay the money to the debtor.
The third party is so taken to owe the money to the debtor even if:
(e) the money is not due, or is not so held, or payable under the authority, unless a condition is fulfilled; and
(f) the condition has not been fulfilled. How much is payable under the notice 260-5(4)
A notice under this section must:
(a) require the third party to pay to the Commissioner the lesser of, or a specified amount not exceeding the lesser of:
(i) the debt; or
(ii) the available money; or
(b) if there will be amounts of the available money from time to time - require the third party to pay to the Commissioner a specified amount, or a specified percentage, of each amount of the available money, until the debt is satisfied. When amount must be paid 260-5(5)
The notice must require the third party to pay an amount under paragraph (4)(a), or each amount under paragraph (4)(b):
(a) immediately after; or
(b) at or within a specified time after;
the amount of the available money concerned becomes an amount owing to the debtor.Debtor must be notified 260-5(6)
The Commissioner must send a copy of the notice to the debtor. Setting-off amounts 260-5(7)
If an entity other than the third party has paid an amount to the Commissioner that satisfies all or part of the debt:
(a) the Commissioner must notify the third party of that fact; and
(b) any amount that the third party is required to pay under the notice is reduced by the amount so paid.
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