TAXATION ADMINISTRATION ACT 1996 - SECT 47B Liability of directors and former directors of corporation for failure to pay corporate tax liability

TAXATION ADMINISTRATION ACT 1996 - SECT 47B

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

(1) If a corporation fails to pay a corporate tax liability 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 corporate tax liability 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 a director or former director of a corporation that he or she will be liable to pay a corporate tax liability of the corporation if the failure to pay the corporate tax liability is not rectified before the end of a period specified in the notice (the
"compliance period" ).

(2A) The compliance period is to be a period of not less than 21 days from the date the notice is served on the director or former director.

(3) For the purposes of this Division, a failure to pay a corporate tax liability is rectified if before the end of the compliance period--

(a) the corporate tax liability is paid, or

(b) the Chief Commissioner makes a special arrangement with the corporation for the payment of the corporate tax liability, or

(c) the Hardship Review Board waives or defers payment of some or all of the corporate tax liability, 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 corporate tax liability is not rectified before the end of the compliance period, the director or former director on whom the compliance notice was served is jointly and severally liable with the corporation to pay the corporate tax liability.

(4A) The Chief Commissioner is to issue to the director or former director a notice of assessment of the tax liability of the director or former director under this Division.

(5) A person does not cease to be liable to pay a corporate tax liability 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.