Tax administration 2015

Enforcement of tax liabilities and solvency

Source: Taxation In Australia Journal Article

Published Date: 1 Apr 2015


The Commissioner of Taxation has broad powers of recovery of taxation liabilities, quite apart from the assessment, review and appeal process. Enforcement action by the Commissioner often presents issues of solvency of the taxpayer. In cases where the taxpayer wishes to dispute the tax assessed, a basic concern is to ensure that the opportunity to do so is not lost because of enforcement action. A taxpayer has options available to maintain a challenge to an underlying tax assessment, but careful consideration should be given to the approach taken, particularly as timing constraints are involved. Four topics within the overall framework of recovery that commonly give rise to questions of solvency are windings-up, stays, deferrals of time for payment, and garnishee notices.

This article explains the legal framework for each topic and discusses some practical issues that need to be managed in order to maximise the taxpayer's chances of being able to argue the substantive tax dispute.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Tax administration 2015

Share this page