Remittance of PAYE to Commissioner

Section 125 of the Taxation (GST and Remedial Matters) Act 2010

The Rewrite Advisory Panel agreed that section RD 4(2) contained an unintended change in outcome. The change in outcome is that an employee could be liable to account for PAYE on their own salary if the employer withholds PAYE from salary or wages, but had not paid the PAYE to the Commissioner.

Under the corresponding provisions of the 2004 Act, an employee was liable to account for PAYE on their own salary or wages only if the employer did not withhold PAYE, but not if the employer had withheld the PAYE but not remitted the PAYE to the Commissioner.

Key features

The amendment ensures that an employee is liable to account for PAYE only if the employer does not withhold PAYE (in full or in part) at the time of paying a PAYE income payment.

Application date

The amendment applies from the beginning of the 2008-09 income year.