Private ruling: Income Tax: Company Administration - agents and trustees, responsibilities
Published: September 2012

Ruling: Q1: Does the receiver have a personal liability to pay tax in their capacity as receiver and manager appointed in respect of property formerly owned by Company A under section 254 of the I ncome Tax Assessment Act 1936 (ITAA 1936)? | A1: Yes. | Q2: Does the receiver have a personal liability to pay tax in their capacity as receiver and manager appointed in respect of property formerly owned by Company B under section 254 of the ITAA 1936? | A2: Yes. | Q3: Where the receiver has been served with a garnishee notice under section 260-5 of Schedule 1 to the Taxation Administration Act 1953 (TAA), does the 'available money' include any amount retained by the receiver for the payment of tax under paragraph 254(1)(d) of the ITAA 1936? | A3: No. The receiver should not pay amounts retained under paragraph 254(1)(d) of the ITAA 1936 to satisfy the garnishee notice. | Q4: Does the indemnity in section 260-15 of Schedule 1 of the TAA 1953 protect the receiver in relation to any resulting failure to pay tax under section 254 of the ITAA 1936? | A4: An answer is not required as the extent of the indemnity in section 260-15 of Schedule 1 to the TAA is not relevant. Where a receiver is required to retain an amount under paragraph 254(1)(d) of the ITAA 1936, the receiver will be personally liable to the extent of that amount under paragraph 254(1)(e) of the ITAA 1936. The receiver may be indemnified under paragraph 254(1)(f) of the ITAA 1936.




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