It is possible that one person (Person A) will be assessed to tax in respect of consideration that is actually received by another person (Person B). A number of rules are applied in this case (ITA 2007, s. 786):

Consideration is not treated as receivable by B until B can effectively enjoy or dispose of it.

A is entitled to recover from B any part of the tax which A has paid.

If any of the tax remains unpaid at the end of the period of six months beginning with the date when it became due and payable, it can be recovered from B as if B were the person assessed, though this does not affect the right to recover the tax from A.

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