Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_4:p34
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 34/43)
Character Range: 641496–644214

not have been expected to take part, and did not take part, in the management of the company; and
 (b) in a case to which paragraph (2)(b) applies—when, and for how long, the individual was a director and took part in the management of the company; and
 (c) in either case—what is fair and reasonable in the circumstances.

Effect of reduction
 (6) The amount of the *PAYG withholding non‑compliance tax the individual must pay is treated as always having been that amount as reduced under this section.

18‑135  Associates of directors of non‑complying companies

Liability to pay PAYG withholding non‑compliance tax
 (1) An individual must pay *PAYG withholding non‑compliance tax in relation to a company for an income year of the individual if:
 (a) at a time when another individual (the director) was a director (within the meaning of the Corporations Act 2001) of the company, the first individual was an *associate of the director; and
 (b) the company was required to pay to the Commissioner under subsection 16‑70(1) in this Schedule amounts:
 (i) the company withheld from *withholding payments the company made to any entities during the income year of the individual; and
 (ii) to which subsection (2) of this section applies; and
 (c) the company did not pay the total of those amounts to the Commissioner on or before the last day (the non‑compliance day) on or before which the company was required to pay any of those amounts to the Commissioner in accordance with subsection 16‑70(1); and
 (d) subsection (3) or (6) of this section applies; and
 (e) a credit to which the individual is entitled under section 18‑15 is attributable to an extent to *amounts withheld by the company under Division 12 from withholding payments made to the individual during the income year of the individual.
Note: For the purposes of paragraph (1)(e), it does not matter whether the company pays the amounts withheld from the withholding payments made to the individual to the Commissioner under subsection 16‑70(1).
 (2) This subsection applies to *amounts withheld that the company was required to pay to the Commissioner on or before a particular day (the payment day) under subsection 16‑70(1), if:
 (a) all of the following subparagraphs apply:
 (i) the director was a director (within the meaning of the Corporations Act 2001) of the company on the payment day;
 (ii) the individual was an *associate of the director on the payment day;
 (iii) the company did not pay the total of those amounts to the Commissioner in accordance with subsection 16‑70(1) on or before the payment day; or
 (b) all of the following subparagraphs apply:
 (i) the director became a director of the company after the payment day;
 (ii)