58Obligations of agent winding up business for non‑resident

##### 58 Obligations of agent winding up business for non‑resident (1) This section applies to an agent for a non‑resident principal who is affected by the GST law and has instructed the agent to wind up so much of the principal’s business as is carried on in Australia. (2) The agent must give written notice to the Commissioner of the instruction, within 14 days after receiving the instruction. (3) The Commissioner must as soon as practicable notify the agent of the amount that the Commissioner considers is enough to cover any net amount, amount of GST and penalty under this Part that the principal is liable to pay or may become liable to pay. (4) The agent must not (without the Commissioner’s permission) part with any of the assets of the principal before receiving the Commissioner’s notice. (5) After receiving the Commissioner’s notice, the agent must set aside, out of the assets available for paying the net amounts, amounts of GST and penalties under this Part, assets to the value of the amount notified, or the whole of the assets so available if they are less than that value. (6) The agent is liable as trustee to pay the net amounts, amounts of GST and penalties under this Part payable by the principal, to the extent of the value of assets that the agent is required to set aside. (7) If the agent contravenes this section or fails as trustee to pay the net amounts, amounts of GST or penalties for which the agent is liable under subsection (6), the agent: (a) is personally liable to pay the net amounts, amounts of GST or penalties, to the extent of the value of the assets that the agent is required to set aside under subsection (5); and (b) is guilty of an offence punishable on conviction by a fine of no more than 10 penalty units. > Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. > Note 2: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit. (8) If 2 or more agents are instructed by the same principal to wind up the business, the obligations and liabilities under this section apply to all of those agents jointly. (9) In a prosecution of an entity for an offence that the entity is taken to have committed because of subsection (8), it is a defence if the entity proves that the entity: (a) did not aid, abet, counsel or procure the relevant act or omission; and (b) was not in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the entity). (10) This section does not reduce any obligation or liability of the agent that arises outside this section.