Taxes Management Act 1970 section 77D

Payments under secondary-liability notices

Section 77D sets out how amounts due under secondary-liability notices are collected, the right of recovery against the originally assessed person, and the tax treatment of such payments.

• Amounts required under a secondary-liability notice can be recovered as if they were tax due and duly demanded
• A person who pays under a secondary-liability notice may recover the amount from the person on whom the original assessment was made
• Payments made under a secondary-liability notice are not deductible for any tax purposes
• These rules ensure that the secondary liability functions as a collection mechanism while preserving the right to seek reimbursement from the primary taxpayer