60Recovery of tax from third parties

60 Recovery of tax from third parties (1) The Commissioner may, by notice, require a person (the third party) to pay money towards a taxpayer's unsatisfied tax liability. (2) A payment or payments may be required from any one or more of the following sources: (a) money that is due or accruing, or may become due or may accrue, to the taxpayer from the third party; (b) money that the third party holds, or may subsequently hold, for or on account of the taxpayer;

Taxation Administration Act 2007 31 (c) money that the third party holds or may subsequently hold on account of some other person for payment to the taxpayer; (d) money that the third party is authorised to pay to the taxpayer. (3) A copy of the notice must be served on the taxpayer. (4) The notice may require: (a) a single payment not exceeding the amount of the tax liability (or the amount available to make the payment); or (b) if the third party is liable from time to time to make payments to the taxpayer – the whole of each payment, or a specified amount from or proportion of each payment, until the tax liability is satisfied. (5) The money must be paid to the Commissioner: (a) within 14 days, or a longer period specified by the Commissioner, after the date of issue of the notice; or (b) if the money does not become due to the taxpayer until after the end of the period referred to in paragraph (a) as soon as practicable after it becomes due to the taxpayer. (6) A person required to pay an amount under this section must comply with the requirement. (7) A third party who makes a payment as required under this section is taken to be acting under the authority of the taxpayer and incurs no civil liability by making the payment. (8) If, after the Commissioner gives a notice to a third party under this section, the relevant tax liability is satisfied, in whole or part, from another source, the Commissioner must promptly, by notice to the third party: (a) revoke the notice under this section; or (b) make any necessary amendment to that notice. (9) The issue of a notice to a third party under this section does not affect the liability of the taxpayer to pay the tax, except to the extent that an amount paid by the third party reduces the amount payable by the taxpayer.

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