This Draft TD, issued Wed 19.9.2012, concerns s 254 of the ITAA 1936 relating to agents and trustees. In particular, the Draft TD deals with the question of whether income tax must have been assessed before an agent or trustee has an obligation under s 254 to retain sufficient money to pay tax, which is or will become due as a result of their agency or trusteeship.
The Draft TD answers no. It says the phrase “tax which is or will become due” in subpara 254(1)(d) is not restricted to tax that has been assessed, and includes tax that will become due when an assessment is made. Consequently, it adds the obligation to retain an amount under subpara 254(1)(d) can arise in respect of tax that has not yet been assessed.
DATE OF EFFECT: When the final Determination is issued, it is proposed to apply both before and after its date of issue.
COMMENTS are due by 19 October 2012. ATO contact: Amie Becker – Tel: (07) 3213 5023; Fax: (07) 3213 5971; Email: amie.becker@ato.gov.au.
[LTN 182, 19/9]