David Bradbury (Lindsay, Australian Labor Party, Assistant Treasurer ) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill accompanies schedule 1 to the Tax Laws Amendment (2012 Measures No. 2) Bill 2012 to make directors, and in limited circumstances their associates, liable to Pay As You Go (PAYG) withholding non-compliance tax.

The tax liability arises where the company has failed to pay the commissioner amounts withheld under PAYG withholding arrangements and the director, or their associates, is entitled to a credit for amounts withheld from payments made by the company to them.

This bill will impose a tax to reverse the economic benefit of a credit entitlement for directors and their associates. This produces a result consistent with the government’s election commitment.

Debate adjourned.

Ordered that the second reading be made an order of the day for the next sitting.