54Collection of tax from third parties

54 Collection of tax from third parties (1) The commissioner may require any of the following people instead of the taxpayer to pay tax that is payable but remains unpaid: (a) a person from whom any money is due or accruing or may become due to the taxpayer; (b) a person who holds or may subsequently hold money for or on account of the taxpayer; (c) a person who holds or may subsequently hold money on account of some other person for payment to the taxpayer; (d) a person having authority from some other person to pay money to the taxpayer. (2) The commissioner’s requirement must be made by written notice to the person concerned (the debtor). (3) A copy of the notice must be given to the taxpayer. (4) If the money due to the taxpayer is payable in instalments, the commissioner may specify in the notice an amount to be paid by the debtor to the commissioner out of each instalment. (5) If, apart from this subsection, money is not due or repayable on demand to the taxpayer unless a condition is fulfilled, for this section the money is taken to be respectively due or payable on demand even if the condition has not been fulfilled.

(6) A notice under this section must require the debtor to pay to the commissioner— (a) if, under subsection (4), the commissioner specifies an amount to be paid out of each instalment—the amount specified from each instalment until the unpaid tax is paid; or (b) an amount, stated by the commissioner, not exceeding— (i) if the money due, held or authorised to be paid to the taxpayer by the debtor is more than the amount of unpaid tax—the amount of unpaid tax; or (ii) the money due, held or authorised to be paid to the taxpayer by the debtor. (7) The money must be paid to the commissioner— (a) on receipt of the notice; or (b) when the money is held by the debtor and becomes due to the taxpayer; or (c) after the period (if any) that may be specified by the commissioner; whichever is the later. (8) A debtor subject to a requirement of the commissioner under this section must comply with the requirement. (9) If a debtor is convicted of an offence against subsection (8) in relation to the refusal or failure of the debtor to pay an amount to the commissioner in accordance with a notice, the court may, in addition to imposing a penalty on the debtor, order the debtor to pay to the commissioner an additional amount not exceeding the firstmentioned

(10) A debtor who makes a payment in accordance with this section is taken to be acting under the authority of the taxpayer and of all other people concerned and is indemnified by this section in relation to the payment. (11) If, after a person is given a notice under this section by the commissioner, the whole or a part of the amount is paid by another person, the commissioner must promptly notify the person to whom the notice is given of the payment and the notice is taken to be amended accordingly. (12) In this section: tax includes— (a) a judgment debt or costs in relation to tax; and (b) a fine or costs imposed by a court in relation to a tax offence; and (c) an amount ordered by a court to be paid to the commissioner by a person convicted of a tax offence.