Northern Territory Numbered Acts Northern Territory Numbered Acts(1) The death of a taxpayer does not affect a tax liability.
(2) In particular, the death of a taxpayer does not suspend a liability to interest or to penalty tax.
(3) A tax liability becomes, on the taxpayer's death, a first charge on the deceased taxpayer's estate.
(4) A deceased taxpayer's non-pecuniary obligations under a taxation law pass to the taxpayer's personal representative.
Examples for subsection (4)
1 If a taxpayer was required under a taxation law to lodge returns, the obligation passes to, and must be discharged by, the personal representative.
2 The deceased taxpayer's tax records must be kept by the personal representative for as long as the taxpayer would have been required to keep them if the taxpayer were still alive.
(5) Powers and remedies that would have been available against the taxpayer if the taxpayer were still alive are available against the taxpayer's personal representative.
Examples for subsection (5)
1 The Commissioner may make an assessment of the tax payable by the taxpayer's personal representative out of the deceased taxpayer's estate.
2 The Commissioner may commence proceedings against the personal representative for the recovery of tax.
3 If proceedings commenced against a taxpayer for recovery of tax are incomplete at the time of the taxpayer's death, they may be continued and completed against the taxpayer's personal representative.