New South Wales Consolidated Acts

TAXATION ADMINISTRATION ACT 1996 - SECT 47B

47B Liability of directors and former directors of corporation for failure to pay tax

(1) If a corporation fails to pay an assessment amount in accordance with a notice of assessment issued by the Chief Commissioner, the Chief Commissioner may serve a compliance notice on one or more of the following persons:

(a) a person who is a director of the corporation,

(b) a person who was a director of the corporation at the time the corporation first became liable to pay the tax, or any part of the tax, that is included in the assessment amount or at any time afterwards (referred to in this Division as a "former director"), subject to subsection (5).

(2) A "compliance notice" is a notice that advises the director or former director on whom it is served that if the failure to pay the assessment amount is not rectified within the period specified in the notice, being a period of not less than 21 days, the director or former director will be liable to pay the assessment amount.

(3) For the purposes of this Division, a failure to pay an assessment amount is rectified if:

(a) the assessment amount is paid, or

(b) the Chief Commissioner makes a special arrangement with the corporation for the payment of the assessment amount, or

(c) the Board of Review waives or defers payment of some or all of the assessment amount, or

(d) an administrator of the corporation is appointed under Part 5.3A of the Corporations Act 2001 of the Commonwealth, or

(e) the corporation begins to be wound up within the meaning of the Corporations Act 2001 of the Commonwealth.

(4) If the failure to pay the assessment amount is not rectified within the period specified in the compliance notice, the director or former director on whom the compliance notice was served is jointly and severally liable with the corporation to pay the assessment amount.

(5) A person does not cease to be liable to pay an assessment amount because the person ceases to be a director of the corporation, but a former director of a corporation is not liable for any tax for which the corporation first became liable after the director ceased to be a director of the corporation.