Commonwealth Numbered Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

CORPORATIONS ACT 2001 No. 50, 2001 - SECT 588FGA

Directors to indemnify Commissioner of Taxation if certain payments set aside

(1) This section applies if the Court makes an order under section 588FF against the Commissioner of Taxation because of the payment of an amount in respect of a liability under any of the following provisions of the Income Tax Assessment Act 1936 :

(a)
section 221F (except subsection 221F(12)), section 221G (except subsection 221G(4A)) or section 221P;

(b)
subsection 221YHDC(2);

(c)
subsection 221YHZD(1) or (1A);

(d)
subsection 221YN(1);

(e)
section 222AHA;

or under a provision of Subdivision 16-B in Schedule 1 to the Taxation Administration Act 1953 .

(2) Each person who was a director of the company when the payment was made is liable to indemnify the Commissioner in respect of any loss or damage resulting from the order. (3) An amount payable to the Commissioner under subsection (2):

(a)
is a debt due to the Commonwealth and payable to the Commissioner; and

(b)
may be recovered in a court of competent jurisdiction by the Commissioner, or a Deputy Commissioner of Taxation, suing in his or her official name.

(4) The Court may, in the proceedings in which it made the order against the Commissioner, order a person to pay to the Commissioner an amount payable by the person under subsection (2). (5) A person who pays an amount under subsection (2) has the same rights:

(a)
whether by way of indemnity, subrogation, contribution or otherwise; and

(b)
against the company or anyone else;

as if the payment had been made under a guarantee:

(c)
of the liability referred to in subsection (1); and

(d)
under which the person and every other person who was a director of the company as mentioned in subsection (2) were jointly and severally liable as guarantors.


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback