Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 96

96. (1) Where a person (in this section referred to as the "asset holder")-

   (a)  becomes, on a particular date, a liquidator of a company, being a
        company that is an employer;

   (b)  is a receiver, or a receiver and manager, for debenture holders of a
        company, being a company that is an employer, and, on a particular
        date, takes possession of assets of the company; or

   (c)  is agent for a non-resident principal, being a principal who is an
        employer, and, on a particular date, is instructed by the principal to
        wind up the whole or part of a business of the principal, the
        asset holder shall, within 14 days of that date, give notice in
        writing of the fact to the Commissioner, and the succeeding provisions
        of this section apply.

(2) The Commissioner shall, as soon as practicable, notify the asset holder of
the amount that, in the opinion of the Commissioner, is sufficient to provide
for any amount of tax that is or may become payable by the company or
principal, as the case may be.

(3) Subject to sub-section (5), if the asset holder is a person of the kind
referred to in paragraph (1) (a) or (b), the asset holder-

   (a)  shall not, without the leave of the Commissioner, part with any of the
        assets of the company until the asset holder has been notified by the
        Commissioner under sub-section (2);

   (b)  shall set aside, out of the assets available for payment of ordinary
        debts of the company, assets to the value of an amount that bears to
        the value of the assets available for payment of ordinary debts of the
        company the same proportion as the amount notified by the Commissioner
        under sub-section (2) bears to the sum of-

        (i)    the amount notified by the Commissioner under sub-section (2);

        (ii)   any amount of prescribed tax that the Commissioner is required
               to notify to the asset holder under an Act other than this Act
               and has so notified; and

        (iii)  the aggregate of the ordinary debts of the company (excluding
               any debt in respect of tax or prescribed tax); and

   (c)  is, to the extent of the value of the assets that the asset holder is
        so required to set aside, liable as trustee to pay the tax.

(4) If the asset holder is a person of the kind referred to in paragraph (1)
(c), the asset holder-

   (a)  shall not, without the leave of the Commissioner, part with any of the
        assets of the principal until the asset holder has been notified by
        the Commissioner under sub-section (2);

   (b)  shall set aside, out of the assets available for the payment of the
        tax, assets to the value of the amount so notified, or the whole of
        the assets so available if they are less than that value; and

   (c)  is, to the extent of the value of the assets that the asset holder is
        so required to set aside, liable as trustee to pay the tax.

(5) Nothing in paragraph (3) (a) prevents the asset holder parting with assets
of the company for the purpose of paying debts of the company that are not
ordinary debts of the company.

(6) For the purposes of sub-sections (3) and (5), a debt of a company is an
ordinary debt if-

   (a)  the debt is an unsecured debt; and

   (b)  the debt is not required, under a law of the Commonwealth or of a
        State or Territory, to be paid in priority to some or all of the other
        debts of the company.
(7) In sub-section (3), "prescribed tax" means-

   (a)  tax within the meaning of sub-section 215 (2) of the Income Tax 
        Assessment Act 1936 or of that sub-section as applied by the
        Taxation (Unpaid  Company Tax) Assessment Act 1982 or the
        Trust Recoupment Tax Assessment Act  1985 ;

   (b)  tax within the meaning of sub-section 32 (2) of the Sales Tax
        Assessment Act (No. 1) 1930 or of that sub-section as applied by any
        other Act providing for the assessment of sales tax;

   (c)  tax within the meaning of sub-section 30 (2) of the Pay-roll Tax
        (Territories) Assessment Act 1971;

   (d)  charge within the meaning of sub-section 27 (2) of the Tobacco Charges
        Assessment Act 1955; or

   (e)  tax within the meaning of sub-section 47 (2) of the Wool Tax
        (Administration) Act 1964.

(8) If the asset holder refuses or fails to comply with any provision of this
section or refuses or fails as trustee duly to pay the tax for which the
asset holder is liable under sub-section (3) or (4), the asset holder-

   (a)  is, to the extent of the value of the assets that the asset holder is
        required under sub-section (3) or (4) to set aside, personally liable
        to pay the tax; and

   (b)  is guilty of an offence punishable on conviction by a fine not
        exceeding $1,000.

(9) Nothing in this section shall be taken to limit an obligation or liability
of the asset holder arising otherwise than under this section.

(10) Where 2 or more persons-

   (a)  are liquidators of a particular company of a kind referred to in
        paragraph (1) (a);

   (b)  are receivers, or receivers and managers, for debenture holders of a
        particular company of a kind referred to in paragraph (1) (b) and take
        possession of assets of the company; or

   (c)  are agents for a particular non-resident principal of a kind referred
        to in paragraph (1) (c) and are instructed by the principal to wind up
        the whole or a part of a business of the principal, then-

   (d)  a reference in this section to the asset holder is a reference to both
        or all of those persons; and

   (e)  the obligations and liabilities attaching to the asset holder under
        this section attach to both or all of those persons jointly.

(11) In this section, unless the contrary intention appears, "tax" includes
additional tax under section 93 or Part VIII.