Part 6Power to deal with default or business failure

Part 6—Power to deal with default or business failure Division 1—Taxation default 73A—Disciplinary action for taxation defaults (1) A taxation default occurs if an authorised betting operator contravenes or fails to comply with— (a) a provision of— (i) Part 3B or regulations made for the purposes of Part 3B; or (ii) the Taxation Administration Act 1996 as it applies in connection with Part 3B or regulations made for the purposes of such provisions; or (b) a condition of a licence, or an obligation under an agreement, relating to compliance with such provisions. (2) If the Commissioner of State Taxation believes on reasonable grounds that a taxation default has occurred, the Commissioner of State Taxation may give written notice to the operator— (a) specifying the default; and (b) requiring the operator to show cause, within a period specified in the notice (which must be at least 14 days), why disciplinary action should not be taken against the operator. (3) The Commissioner of State Taxation must allow the operator a reasonable opportunity to make submissions orally or in writing to the Commissioner of State Taxation. (4) After considering the submissions (if any) made by the operator, the Commissioner of State Taxation may, by notice in writing to the Commissioner, request that the Commissioner take disciplinary action against the operator. (5) If the Commissioner receives a request from the Commissioner of State Taxation under subsection (4), the Commissioner may, by order, take disciplinary action in accordance with Part 5 of the Gambling Administration Act 2019 (and the provisions of Part 5 apply to an order made under this section as if the order were made under that Part). (7) In taking disciplinary action in accordance with this section, the Commissioner may act as the Commissioner thinks fit but is not required to consider the submissions (if any) made by the operator or otherwise exercise an independent discretion in relation to the matter. Division 2—Official management 74—Power to appoint manager (1) If— (a) a licence is suspended, cancelled or surrendered or expires and is not renewed; or (b) a licensee otherwise discontinues operations under a licence, the Minister may, on the recommendation of the Commissioner, appoint an official manager of the business conducted under the licence (or former licence). (2) If a licensee— (a) becomes insolvent within the meaning of Part 7.10 of the Corporations Act 2001 of the Commonwealth; or (b) goes into liquidation, the Minister may, on the recommendation of the Commissioner, appoint an official manager of the business conducted under the licence (or former licence). (3) An appointment under subsection (1) or (2) may be terminated at any time by the Minister. 75—Powers of manager (1) The official manager— (a) is to assume control of the business conducted under the licence (or former licence); and (b) is entitled to possession and control of property of the licensee (or former licensee) used for the purposes of the business conducted under the licence; and (c) is, while the appointment continues in force, taken to be the holder of a licence of the same kind on conditions determined by the Commissioner. (2) Any proceeds of the business while under official management are to be applied as follows: (a) firstly, the proceeds are to be applied towards the costs of official management (including the official manager's remuneration); and (b) secondly, a reasonable rental for the licensee's (or former licensee's) property is to be paid out of the proceeds to the licensee (or former licensee) while the property remains in the official manager's possession; and (c) thirdly, any remaining balance is to be paid into the Consolidated Account. (3) However, an approved licensing agreement may operate to exclude or modify the provisions of subsection (2) in relation to a major betting operations licence. (4) The regulations may confer powers and impose duties on official managers and regulate official management in other ways. Division 3—Administrators, controllers and liquidators 76—Administrators, controllers and liquidators (1) If an administrator, controller or liquidator of an authorised betting operator assumes control over the business conducted under a licence or authorisation for a period (the period of administration), that person— (a) stands in the position of the authorised betting operator for the period of administration; and (b) is liable for tax payable under this Act and other liabilities to the Crown accruing during the period of administration; and (c) is subject to this Act, and liable to direction and control under this Act, in the same way as if the person were the authorised betting operator; and (d) if charged with an offence against this Act, is entitled to a defence on proof that the offence was not committed intentionally and did not arise from the defendant's failure to take reasonable care to avoid the commission of the offence. (2) For the purposes of subsection (1), an administrator, controller or liquidator will only be regarded as assuming control of the business if the administrator, controller or liquidator assumes control of all or substantially all of the business assets associated with the operation of the business conducted under the licence or authorisation. (3) An administrator, controller or liquidator of an authorised betting operator must, within 7 days after assuming control over the business conducted under a licence or authorisation, notify the Commissioner of that fact.