SALES TAX ASSESSMENT ACT 1992 No. 114, 1992 - SECT 124 Obligations of agent winding up business for absentee principal

SALES TAX ASSESSMENT ACT 1992 No. 114, 1992 - SECT 124

124.(1) This section applies to an agent for a non-resident principal who has
been instructed by the principal to wind up so much of the principal's
business as is carried on in Australia.

(2) The agent must give written notice to the Commissioner of the instruction,
within 14 days after receiving the instruction from the principal.

(3) The Commissioner must as soon as practicable notify the agent of the
amount that the Commissioner considers is enough to cover any sales tax that
the principal is liable to pay or may become liable to pay.

(4) The agent must not (without the Commissioner's permission) part with any
of the assets of the principal before receiving the notice from the
Commissioner.

(5) After receiving the Commissioner's notice, the agent must set aside, out
of the assets available for paying sales tax, assets to the value of the
amount notified, or the whole of the assets so available if they are less than
that value.

(6) The agent is liable as trustee to pay sales tax payable by the principal,
to the extent of the value of assets that the agent is required to set aside.

(7) If the agent, without reasonable excuse, contravenes this section or fails
as trustee to pay the sales tax for which the agent is liable under subsection
(6), the agent:

   (a)  is personally liable to pay the sales tax, to the extent of the value
        of the assets that the agent is required to set aside under subsection
        (5); and

   (b)  is guilty of an offence punishable on conviction by a fine of up to
        $1,000.

(8) If 2 or more persons are instructed by the same principal to wind up the
business, the obligations and liabilities under this section apply to all of
those persons jointly.

(9) This section does not reduce any obligation or liability of the agent that
arises outside this section.

(10) In this section:

"sales tax" includes penalty under Part 9 and late-payment penalty.