Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section has effect if:
(a) a company (the defaulter ) became liable under another section to pay an amount described in subsection (2) because the company was an * NZ franking company; and
(b) the amount was unpaid by the time (the defaulter's due time ) it was due and payable by the defaulter; and
(c) at any time during the period for the amount (see subsection (2)), the defaulter was a member of the same * wholly - owned group as one or more other companies (each of which is a contributor ).
(2) For the purposes of subsection (1), the amount and period are shown in the table:
Amount and period | ||
Item | For an amount of this kind: | The period is: |
1 | Whichever of these periods is relevant: (a) if the defaulter was liable to pay the tax because its franking account was in deficit at the end of an income year--that income year; (b) if the defaulter was liable to pay the tax because of another event--the period starting at the start of the income year in which the event occurred and ending when the event occurred | |
2 | * Over - franking tax | The income year in which the defaulter made the * frankable distribution that made the defaulter liable to pay the tax |
3 | * General interest charge on * franking deficit tax or * over - franking tax | The period identified under item 1 or 2 for the tax |
4 | Administrative penalty that: (a) is mentioned in section 284 - 75, 284 - 145, 286 - 75 or 288 - 25 in Schedule 1 to the Taxation Administration Act 1953 ; and (b) relates entirely to * franking deficit tax or * over - franking tax | The period identified under item 1 or 2 for the tax |
(3) Just after the defaulter's due time, these companies become jointly and severally liable to pay the unpaid amount:
(b) each contributor, other than one that, at that time:
(i) is neither an Australian resident nor an * NZ resident; or
(ii) is prohibited by an * Australian law or a law of New Zealand from entering into an * arrangement that would make the contributor jointly or severally liable for the unpaid amount.
(4) The joint and several liability of a particular contributor becomes due and payable by the contributor 14 days after the Commissioner gives it written notice of the liability.
Note 1: Two or more contributors will have different due and payable dates for the same liability if the Commissioner gives them notice of their liability on different days.
Note 2: This section does not affect the time at which the liability for the unpaid amount arose for, or became due and payable by, the defaulter.
(a) the unpaid amount (the first interest amount ) is * general interest charge for a day in relation to another unpaid amount (the primary liability ) that consists of * franking deficit tax or * over - franking tax; and
(b) on a day the Commissioner gives a particular contributor written notice under subsection (4) of the contributor's liability for the first interest amount; and
(c) general interest charge arises:
(i) for a day (the later day ) after the days mentioned in paragraphs (a) and (b); and
(ii) in relation to the primary liability; and
(d) the general interest charge for the later day has not been paid or otherwise discharged in full by the time it became due and payable;
the Commissioner is taken to have given the contributor written notice under subsection (4) of the general interest charge for the later day on that later day.
(6) Section 254 of the Income Tax Assessment Act 1936 applies in relation to the contributors' liability as if it were a liability for tax.
Note: Section 254 of the Income Tax Assessment Act 1936 deals with the payment of tax by agents and trustees.
Guide to Division 230
230 - B The accruals/realisation methods
230 - C Fair value method
230 - D Foreign exchange retranslation method
230 - E Hedging financial arrangements method
230 - F Reliance on financial reports
230 - G Balancing adjustment on ceasing to have a financial arrangement
230 - J Additional operation of Division