10Recovery of tax by financial institutions

10 Recovery of tax by financial institutions

(1) Where a financial institution pays tax in respect of a taxable debit made to a taxable account kept with the financial institution, the account holder is liable, or, if there are 2 or more account holders, those account holders are jointly and severally liable, to pay to the financial institution an amount equal to that tax and the financial institution may recover that amount from that account holder, or from either or any of those account holders, as a debt due to the financial institution, by action in a court of competent jurisdiction. (2) An account holder is not, or account holders are not, liable to pay to a financial institution under subsection (1) an amount in respect of an amount of tax: (a) that has been refunded to the financial institution in accordance with a provision of this Act; or (b) in respect of which an amount has been paid to the financial institution under section 14. (3) A financial institution may debit an account with an amount that the account holder is, or the account holders are, liable to pay to the financial institution under subsection (1). (4) Where a financial institution would, but for this section, have power to enter into an agreement or arrangement with the account holder or account holders of a taxable account kept with the financial institution under which the financial institution would be entitled to recover from the account holder or account holders, whether by debiting the account or otherwise, amounts equal to amounts of tax that the financial institution is or becomes liable to pay in respect of taxable debits that have been or are made to that account, nothing in this section prevents the financial institution from entering into such an agreement or arrangement.