Income Tax Act 2007 section 768

Recovery of tax where consideration receivable by person not assessed

Section 768 deals with the recovery of tax in situations where one person (A) is assessed to tax, but the consideration or proceeds from a transaction are actually received by a different person (B).

• Where person A is assessed to tax but person B receives the consideration from the transaction, person A has a right to recover from person B any tax that A has paid
• Person A can obtain a certificate of tax paid (under section 769) to support the recovery process
• The section includes a tie-breaker provision to resolve situations where there may be competing claims or overlapping assessments
• This provision ensures that the person who actually bears the tax burden can seek reimbursement from the person who received the economic benefit of the transaction