Banking And Finance Update

• A reminder about the ATO's powers to rank ahead of secured creditors
  The Tax Administration Act gives the Taxation Commissioner power to collect tax debts from third parties who owe money to a taxpayer

• AML update
  There are only a few weeks left until the new AML/CTF legislation has a major impact on the mortgage industry. What is the current state of play?

A reminder about the ATO's powers to rank ahead of secured creditors

The Tax Administration Act gives the Taxation Commissioner power to collect tax debts from third parties who owe money to a taxpayer.

For example, the ATO could issue a garnishee notice to X P/L which owes money to your mortgagor. This notice creates a statutory charge over the debt and requires X to pay it to the ATO instead of to your mortgagor.