Australian Capital Territory Numbered Acts

TAXATION ADMINISTRATION ACT 1999 (NO. 4 OF 1999) - SECT 53

(1)     This section applies where—

        (a)     a person (in this section called “the agent”) has possession, control or management of a business or property of a taxpayer as an agent or trustee or in any other capacity; and

        (b)     obligations under a tax law (whether as to the payment of tax or otherwise) remain undischarged by the taxpayer or will arise in relation to the business or property.

(2)     The agent shall, as soon as and so far as is practicable, ensure that—

        (a)     the obligations of the taxpayer under a tax law that remain undischarged are discharged; and

        (b)     all further obligations that arise under a tax law in relation to the business or property are discharged while the person continues to have possession, control or management of the business or property.

Penalty: a penalty not greater than could be imposed on the taxpayer for a failure to fulfil the obligation concerned.

(3)     For those purposes the agent shall set aside (and, so far as necessary, liquidate) assets of the taxpayer (or the taxpayer's estate) to the value of any tax that has become or becomes payable and use those assets to pay the tax.

Penalty:     50 penalty units.

(4)     If the agent fails, without the Commissioner's written permission, to set aside, liquidate and use sufficient assets to pay the tax, the Commissioner may recover from the agent as a debt the whole or a part of an amount that is assessed as being payable as tax in relation to the business or property and remains unpaid, but the agent will not otherwise be personally liable for the payment of the tax.

(5)     The agent is entitled to be indemnified by the taxpayer (or out of the taxpayer's estate) for payments made or action taken in pursuance of this section.

(6)     This section does not prevent the making of a payment to the agent out of the assets, in priority to tax, of any reasonable remuneration, charges and expenses to which the agent would, apart from this section, be entitled in relation to his or her performance of the agent's functions.