| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012293833046
This edited version of your ruling will be published in the public register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fac sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Income Tax: Company Administration - agents and trustees, responsibilities
Question 1
Does the receiver have a personal liability to pay tax in their capacity as receiver and manager appointed in respect of property formerly owned by Company A under section 254 of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
Yes.
Question 2
Does the receiver have a personal liability to pay tax in their capacity as receiver and manager appointed in respect of property formerly owned by Company B under section 254 of the ITAA 1936?
Answer
Yes.
Question 3
Where the receiver has been served with a garnishee notice under section 260-5 of Schedule 1 to the Taxation Administration Act 1953 (TAA), does the 'available money' include any amount retained by the receiver for the payment of tax under paragraph 254(1)(d) of the ITAA 1936?
Answer
No. The receiver should not pay amounts retained under paragraph 254(1)(d) of the ITAA 1936 to satisfy the garnishee notice.
Question 4
Does the indemnity in section 260-15 of Schedule 1 of the TAA 1953 protect the receiver in relation to any resulting failure to pay tax under section 254 of the ITAA 1936?
Answer
An answer is not required as the extent of the indemnity in section 260-15 of Schedule 1 to the TAA is not relevant. Where a receiver is required to retain an amount under paragraph 254(1)(d) of the ITAA 1936, the receiver will be personally liable to the extent of that amount under paragraph 254(1)(e) of the ITAA 1936. The receiver may be indemnified under paragraph 254(1)(f) of the ITAA 1936.