Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:10_4
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 10 cl 4
Character Range: 85434–88060

4                  Administrative penalty that:                                                                                              The period identified under item 1 or 2 for the tax
                   (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

 (3) Just after the defaulter's due time, these companies become jointly and severally liable to pay the unpaid amount:
 (a) the defaulter;
 (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.

 (5) If:
 (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.

[The next Division is Division 240.]

Part 2—Related amendments

Division 1—Consequential amendments

Income Tax Assessment Act 1997