96Person in receipt or control of money for absentee

96 Person in receipt or control of money for absentee

(1)  This section applies to a person (the "controller") who has the receipt, control or disposal of money belonging to a person resident out of Australia (the "principal") if the principal is liable to pay tax under this Act.

(2)  The controller must pay the tax payable by the principal at the time, or within the period, specified by the Commissioner.

(3)  A controller who pays tax in accordance with subsection (2) may recover the amount paid from the principal or deduct it from any money in the controller's hands belonging to the principal.

(4)  A controller must from time to time retain out of any money which comes to the controller on behalf of the principal so much as is sufficient to pay the tax which is or will become due by the principal.

(5)  A controller is personally liable for the tax payable by the controller on behalf of the principal if –

(a) after the tax becomes payable; or

(b) after the Commissioner has required the controller to pay the tax –

the controller, except with the written permission of the Commissioner, disposes of or parts with any fund or money then in the controller's possession, or which comes to the controller from or out of which the tax could legally be paid.

(6)  Otherwise than as provided in subsection (5) , a controller is not personally liable to pay the tax payable by the principal.

(7)  A controller is indemnified for all payments which the controller makes under this Act or in accordance with the requirements of the Commissioner.