Taxation Administration Act 1953

No. 1, 1953

Compilation No. 141

Compilation date:   30 November 2016

Includes amendments up to: Act No. 86, 2016

Registered:    14 December 2016

This compilation is in 3 volumes

Volume 1: sections 1–18

  Schedule 1 (sections 6‑1 to 97‑35)

Volume 2: Schedule 1 (sections 105‑1 to 850‑100)

Volume 3: Endnotes

Each volume has its own contents

This compilation includes commenced amendments made by Act No. 82, 2016. Amendments made by Act No. 86, 2016 have not commenced but are noted in the endnotes.

About this compilation

This compilation

This is a compilation of the Taxation Administration Act 1953 that shows the text of the law as amended and in force on 30 November 2016 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part I—Preliminary

1 Short title

2 Interpretation

2A Application of the Criminal Code

2B Act binds the Crown

3 Application

3AA Schedule 1

Part IA—Administration

3A General administration of Act

3B Annual report

3C Reporting of information about corporate tax entity with reported total income of $100 million or more

3CA Reporting of information by significant global entities

3E Reporting of information about entity with PRRT payable

Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation

4 Commissioner and Second Commissioners of Taxation

4A Statutory Agency etc. for purposes of Public Service Act

5 Tenure of Commissioner and Second Commissioners

5A Remuneration and allowances of Commissioner and Second Commissioners

6 Leave of absence

6A Resignation

6B Acting appointments

6C Suspension and removal from office of Commissioner or Second Commissioner

6D Powers of Second Commissioner

7 Deputy Commissioners of Taxation

8 Delegation

Part IIA—The general interest charge

8AAA Overview

8AAB When the general interest charge applies

8AAC Amount of the general interest charge

8AAD What is the general interest charge rate?

8AAE When the charge is due and payable

8AAF Notification by Commissioner

8AAG Remission of the charge

8AAGA Rounding of the charge

8AAH Judgment for payment of an unpaid amount

Part IIB—Running balance accounts, application of payments and credits, and related matters

Division 1—Preliminary

8AAZA Definitions

8AAZB Trustee to be treated as separate entity for each capacity

Division 2—Running Balance Accounts (or RBAs)

8AAZC Establishment of RBAs

8AAZD Allocation of tax debts to RBAs

8AAZF General interest charge on RBA deficit debt

8AAZG RBA statements

8AAZH Liability for RBA deficit debt

8AAZI RBA statement to be evidence

8AAZJ Evidentiary certificate about RBA transactions etc.

Division 3—Treatment of payments, credits and RBA surpluses

8AAZL Amounts covered by this Division

8AAZLA Method 1—allocating the amount first to an RBA

8AAZLB Method 2—applying the amount first against a non‑RBA tax debt

8AAZLC RBA surplus and related credits must remain equivalent if one or the other is applied

8AAZLD Special priority credits

8AAZLE Instructions to Commissioner not binding

Division 3A—Refunds of RBA surpluses and credits

8AAZLF Commissioner must refund RBA surpluses and credits

8AAZLG Retaining refunds until information or notification given

8AAZLGA Retaining refunds while Commissioner verifies information

8AAZLGB Retaining refunds until notification under Division 389 or ascertainment of liability

8AAZLH How refunds are made

Division 4—Miscellaneous provisions about tax debts

8AAZM When payments are treated as received

8AAZMA Electronic payment of tax debts

8AAZMB Saturdays, Sundays and public holidays

8AAZN Overpayments made by the Commissioner under taxation laws

Part III—Prosecutions and offences

Division 1—Preliminary

8A Interpretation

8AB Application of Part to the Development Allowance Authority Act 1992

8AC Application of Part to the Tax Agent Services Act 2009

Division 2—Offences

Subdivision A—Failure to comply with taxation requirements

8B Interpretation

8C Failure to comply with requirements under taxation law

8D Failure to answer questions when attending before the Commissioner etc.

8E Penalties for failure to comply with requirements under taxation law

8F Election to treat offence otherwise than as prescribed taxation offence

8G Order to comply with requirement

8H Penalty for failure to comply with order to comply

8HA Court may order payment of amount in addition to penalty

Subdivision B—Offences relating to statements, records and certain other Acts

8J Interpretation

8K False or misleading statements

8L Incorrectly keeping records etc.

8M Penalties for offences against subsections 8K(1) and (1B) and 8L(1) and (1A)

8N Recklessly making false or misleading statements

8Q Recklessly incorrectly keeping records etc.

8R Penalties for offences against sections 8N and 8Q

8S Election to treat offence otherwise than as prescribed taxation offence

8T Incorrectly keeping records with intention of deceiving or misleading etc.

8U Falsifying or concealing identity with intention of deceiving or misleading etc.

8V Penalties for offences against sections 8T and 8U

8W Court may order payment of amount in addition to penalty

Subdivision BA—Offences relating to tax file numbers

8WA Unauthorised requirement etc. that tax file number be quoted

8WB Unauthorised recording etc. of tax file number

8WC Conducting affairs so as to avoid tax file number requirements

Subdivision C—Miscellaneous

8XA Unauthorised access to taxation records

8Y Liability of officers etc. of corporations

8Z Evidentiary certificate relating to previous convictions

Division 3—Prosecution of taxation offences

8ZA Prosecution of taxation offences

8ZB Prosecution may be commenced at any time

8ZC Place where offence committed

8ZD Conduct by employees or agents of corporations

8ZE Civil penalty not payable if prosecution instituted

8ZF Penalties for corporations

8ZG Enforcement of orders for payment

8ZH Penalties not to relieve from tax

Division 4—Prescribed taxation offences

8ZJ Prosecution of prescribed taxation offences

8ZK Protection of witnesses

8ZL Averment

8ZM Evidence of authority to institute proceedings

8ZN Costs

Division 5—Service of summons for prescribed taxation offences

9 Interpretation

10 Service of summons by post

11 Notice of conviction in absentia

12 Notice of intention to issue warrant in default of payment

13 Limitation of action to enforce payment of fine

13A Setting aside of conviction or order

13B Proof of service of summons or notice

13C Application of other laws

Division 6—Setting aside etc. of conviction or order on application of Commissioner

13CA Setting aside etc. of conviction or order on application of Commissioner

Part IIIA—Co‑operation between Commonwealth and State taxation authorities

Division 1—Interpretation

13D Interpretation

Division 2—Trans‑border investigations

13E State taxation officers may refer matters to Commissioner for investigation

13F Access to documents etc.

13G Commissioner may obtain information and evidence

Division 4—Certification by State taxation officer of copies of, and extracts from, documents

13K Certification by State taxation officer of copies of, and extracts from, documents

Division 5—Australian Taxation Office may perform functions under State/Territory debits tax laws

13L Australian Taxation Office may perform functions under State/Territory debits tax laws

Part IVA—Departure from Australia of certain tax debtors

Division 1—Interpretation

14Q Interpretation

Division 2—Prohibition and authorisation of departure of certain tax debtors

14R Departure from Australia of certain tax debtors prohibited

14S Departure prohibition orders

14T Revocation and variation of departure prohibition orders

14U Departure authorisation certificates

Division 3—Appeals from, and review of, decisions of the Commissioner

14V Appeals to courts against making of departure prohibition orders

14W Jurisdiction of courts

14X Orders of court on appeal

14Y Applications for review of certain decisions

Division 4—Enforcement

14Z Powers of authorised officers

14ZA Certain tax debtors to produce authority to depart etc.

Part IVC—Taxation objections, reviews and appeals

Division 1—Introduction

14ZL Part applies to taxation objections

14ZM Division 2—Interpretive

14ZN Division 3—Taxation objections

14ZO Division 4—Tribunal review

14ZP Division 5—Federal Court appeals

Division 2—Interpretive provisions

14ZQ General interpretation provisions

14ZR Taxation decisions covered by single notice to be treated as single decision

14ZS Ineligible income tax remission decisions

Division 3—Taxation objections

14ZU How taxation objections are to be made

14ZV Limited objection rights in the case of certain amended taxation decisions

14ZVA Limited objection rights because of other objections

14ZVB Objections relating to excess concessional contributions

14ZVC Objections relating to non‑concessional contributions

14ZW When taxation objections are to be made

14ZX Commissioner to consider applications for extension of time

14ZY Commissioner to decide taxation objections

14ZYA Person may require Commissioner to make an objection decision

14ZYB Requiring Commissioner to make a private ruling

14ZZ Person may seek review of, or appeal against, Commissioner’s decision

Division 4—AAT review of objection decisions and extension of time refusal decisions

14ZZA Modified AAT Act to apply

14ZZB Sections 27, 28, 41 and 44A of the AAT Act not to apply to certain decisions

14ZZC Modification of section 29 of the AAT Act

14ZZD Modification of section 30 of the AAT Act

14ZZE Hearings before Tribunal to be held in private if applicant so requests

14ZZF Modification of section 37 of the AAT Act

14ZZG Modification of section 38 of the AAT Act

14ZZJ Modification of section 43 of the AAT Act

14ZZK Grounds of objection and burden of proof

14ZZL Implementation of Tribunal decisions

14ZZM Pending review not to affect implementation of taxation decisions

Division 5—Court appeals against objection decisions

14ZZN Time limit for appeals

14ZZO Grounds of objection and burden of proof

14ZZP Order of court on objection decision

14ZZQ Implementation of court order in respect of objection decision

14ZZR Pending appeal not to affect implementation of taxation decisions

14ZZS Transfer of certain proceedings to Family Court

Part V—Miscellaneous

15 Appearance by Commissioner etc.

15A Certification by Commissioner of copies of, and extracts from, documents

15B Recoverable advances

15C Recoverable payments

15D Reports about recoverable advances and recoverable payments

16 Payments out of Consolidated Revenue Fund

16A Regulations may provide for methods of payment of tax liabilities etc.

16B Certain liabilities to be reduced to nearest multiple of 5 cents

17 Powers of taxation officers in relation to references to currency etc.

17A Powers of Federal Court and Federal Circuit Court in respect of taxation matters

18 Regulations

Schedule 1—Collection and recovery of income tax and other liabilities

Chapter 2—Collection, recovery and administration of income tax

Part 2‑1—Introduction to the Pay as you go (PAYG) system

Division 6—Guide to Parts 2‑5 and 2‑10

6‑1 What Parts 2‑5 and 2‑10 are about

6‑5 The Pay as you go (PAYG) system

6‑10 How the amounts collected are dealt with

Part 2‑5—Pay as you go (PAYG) withholding

Division 10—Guide to Part 2‑5

10‑1 What this Part is about

10‑5 Summary of withholding payments

Division 11—Preliminary matters

11‑1 Object of this Part

11‑5 Constructive payment

Division 12—Payments from which amounts must be withheld

Subdivision 12‑A—General rules

12‑1 General exceptions

12‑5 What to do if more than one provision requires a withholding

12‑7 Division does not apply to alienated personal services payments

12‑10 Division does not apply to non‑cash benefits

12‑20 Application of Division and regulations to non‑share dividends

Subdivision 12‑B—Payments for work and services

12‑35 Payment to employee

12‑40 Payment to company director

12‑45 Payment to office holder

12‑47 Payment to religious practitioners

12‑50 Return to work payment

12‑55 Voluntary agreement to withhold

12‑60 Payment under labour hire arrangement, or specified by regulations

Subdivision 12‑C—Payments for retirement or because of termination of employment

12‑80 Superannuation income streams and annuities

12‑85 Superannuation lump sums and payments for termination of employment

12‑90 Unused leave payments

Subdivision 12‑D—Benefit and compensation payments

12‑110 Social Security or other benefit payment

12‑115 Commonwealth education or training payment

12‑120 Compensation, sickness or accident payment

Subdivision 12‑E—Payments where TFN or ABN not quoted

Payment in respect of investment

12‑140 Recipient does not quote tax file number

12‑145 Investor becoming presently entitled to income of a unit trust

12‑150 Limited application of section 12‑140 to payment under financial arrangement

12‑155 When investor may quote ABN as alternative

12‑160 Investment body unaware that exemption from quoting TFN has stopped applying

12‑165 Exception for fully franked dividend

12‑170 Exception for payments below thresholds set by regulations

Payment of income of closely held trust where TFN not quoted

12‑175 Trustee distributes income of closely held trust

12‑180 Beneficiary becomes presently entitled to income of closely held trust

12‑185 Exception for payments below thresholds set by regulations

Payment for a supply

12‑190 Recipient does not quote ABN

Subdivision 12‑F—Dividend, interest and royalty payments

Dividends

12‑210 Dividend payment to overseas person

12‑215 Dividend payment received for foreign resident

12‑220 Application to part of a dividend

12‑225 Application to distribution by a liquidator or other person

Interest

12‑245 Interest payment to overseas person

12‑250 Interest payment received for foreign resident

12‑255 Interest payment derived by lender in carrying on business through overseas permanent establishment

12‑260 Lender to notify borrower if interest derived through overseas permanent establishment

Royalties

12‑280 Royalty payment to overseas person

12‑285 Royalty payment received for foreign resident

General

12‑300 Limits on amount withheld under this Subdivision

Subdivision 12‑FA—Departing Australia superannuation payments

12‑305 Departing Australia superannuation payment

12‑310 Limits on amount withheld under this Subdivision

Subdivision 12‑FAA—Excess untaxed roll‑over amount

12‑312 Untaxed roll‑over superannuation benefits

12‑313 Limits on amount withheld under this Subdivision

Subdivision 12‑FB—Payments to foreign residents etc.

12‑315 Payment to foreign resident etc.

12‑317 Payment received for foreign resident etc.

12‑319 Exemptions from withholding obligations under this Subdivision

Subdivision 12‑FC—Seasonal Labour Mobility Program

12‑319A Payment to employee

Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources

Mining on Aboriginal land

12‑320 Mining payment

Natural resources

12‑325 Natural resource payment

12‑330 Payer must ask Commissioner how much to withhold

12‑335 Commissioner may exempt from section 12‑330, subject to conditions

Subdivision 12‑H—Distributions of withholding MIT income

Guide to Subdivision 12‑H

12‑375 What this Subdivision is about

Operative provisions

12‑383 Meaning of withholding MIT

12‑385 Withholding by withholding MITs

12‑390 Withholding by custodians and other entities

12‑395 Requirement to give notice or make information available

12‑405 Meaning of fund payment—general case

12‑410 Entity to whom payment is made

12‑415 Failure to give notice or make information available: administrative penalty

12‑420 Agency rules

12‑425 Meaning of clean building managed investment trust

12‑430 Meaning of clean building

Division 12A—Distributions by AMITs (including deemed payments)

Guide to Division 12A

12A‑1 What this Division is about

Subdivision 12A‑A—Distributions by AMITs relating to dividend, interest and royalties

Guide to Subdivision 12A‑A

12A‑5 What this Subdivision is about

Operative provisions

12A‑10 Deemed payments—no obligation to withhold under Subdivision 12‑F (dividend, interest and royalty payments)

12A‑15 Dividend, interest or royalty payments relating to AMIT—requirement to give notice or make information available

12A‑20 Failure to give notice or make information available under section 12A‑15: administrative penalty

12A‑25 Meaning of AMIT DIR payment

12A‑30 Meaning of AMIT dividend payment

12A‑35 Meaning of AMIT interest payment

12A‑40 Meaning of AMIT royalty payment

Subdivision 12A‑B—Distributions by AMITs relating to Subdivision 12‑H fund payments

Guide to Subdivision 12A‑B

12A‑100 What this Subdivision is about

Operative provisions

12A‑105 Deemed payments—no obligation to withhold under Subdivision 12‑H

12A‑110 Meaning of fund payment—AMITs

Subdivision 12A‑C—Deemed payments by AMITs etc.

Guide to Subdivision 12A‑C

12A‑200 What this Subdivision is about

Operative provisions

12A‑205 Issue of AMMA statement etc. deemed to be payment

12A‑210 Post‑AMMA actual payment and pre‑AMMA actual payment in respect of deemed payment

12A‑215 AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc.

12A‑220 Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc.

Division 13—Alienated personal services payments

13‑1 Object of this Division

13‑5 Payment to the Commissioner in respect of alienated personal services payments

13‑10 Alienated personal services payments

13‑15 Personal services payment remitters

13‑20 Time for payments to Commissioner for alienated personal services payments made during 2000‑01

Division 14—Non‑cash benefits, and accruing gains, for which amounts must be paid to the Commissioner

Subdivision 14‑A—Non‑cash benefits

14‑1 Object of this Subdivision

14‑5 Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding

14‑10 Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit

14‑15 Payer can recover amount paid to the Commissioner

Subdivision 14‑B—Accruing gains

14‑50 Object of this Subdivision

14‑55 Liability for TFN withholding tax

14‑60 Investment body may recover TFN withholding tax from investor

14‑65 Application of rules in Division 18

14‑75 Overpayment of TFN withholding tax

14‑85 Other laws do not exempt from TFN withholding tax

Subdivision 14‑C—Shares and rights under employee share schemes

14‑155 Liability for TFN withholding tax (ESS)

14‑160 Employer may give individual tax file numbers to provider

14‑165 Provider may recover TFN withholding tax (ESS) from individual

14‑170 Application of rules in Division 18

14‑175 Overpayment of TFN withholding tax (ESS)

14‑180 Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997

Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property

14‑200 Certain acquisitions of taxable Australian property from foreign residents

14‑205 Effect of look‑through earnout rights

14‑210 Whether an entity is a relevant foreign resident

14‑215 Excluded transactions

14‑220 Commissioner clearance certificates

14‑225 Entity declarations

14‑230 Administrative penalties for false or misleading declarations

14‑235 Varying amounts to be paid to the Commissioner

Division 15—Working out the amount to withhold

Guide to Division 15 264

15‑1 What this Division is about

Subdivision 15‑A—Working out how much to withhold

15‑10 How much to withhold

15‑15 Variation of amounts required to be withheld

Subdivision 15‑B—Withholding schedules and regulations

15‑25 Commissioner’s power to make withholding schedules

15‑30 Matters to be considered when making withholding schedules

15‑35 Regulations about withholding

Subdivision 15‑C—Declarations

15‑50 Declarations

Division 16—Payer’s obligations and rights

Guide to Division 16 271

16‑1 What this Division is about

Subdivision 16‑A—To withhold

When to withhold

16‑5 When to withhold an amount

16‑7 Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12

16‑20 Payer discharged from liability to recipient for amount withheld

Penalties for not withholding

16‑25 Failure to withhold: offence

16‑30 Failure to withhold: administrative penalty for entity other than exempt Australian government agency

16‑35 Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty

16‑40 Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment

16‑43 Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.

Subdivision 16‑B—To pay withheld amounts to the Commissioner

When and how to pay amounts to the Commissioner

16‑70 Entity to pay amounts to Commissioner

16‑75 When amounts must be paid to Commissioner

16‑80 Penalty for failure to pay within time

16‑85 How amounts are to be paid

Who is a large, medium or small withholder

16‑95 Meaning of large withholder

16‑100 Meaning of medium withholder

16‑105 Meaning of small withholder

16‑110 Commissioner may vary withholder’s status downwards

16‑115 Commissioner may vary withholder’s status upwards

Subdivision 16‑BA—To be registered

Registration of withholders

16‑140 Withholders must be registered

16‑141 Registration and cancellation

Branch registration

16‑142 Branches may be registered

16‑143 Separate amounts for entities and branches

16‑144 Cancellation of branch registration

16‑145 Effect on branches of cancelling the entity’s registration

Subdivision 16‑C—To provide information

To the Commissioner

16‑150 Commissioner must be notified of amounts

16‑152 Annual reports—Withholding payments covered by section 12‑175

16‑153 Annual reports—other payments

To recipients of withholding payments

16‑155 Annual payment summary

16‑156 Annual payment summary for sections 12‑175 and 12‑180

16‑157 Payment summary for Subdivision 12‑H

16‑160 Part‑year payment summary

16‑165 Payment summaries for superannuation lump sums and payments for termination of employment

16‑166 Payment summary for a departing Australia superannuation payment

16‑167 Payment summary for payment to recipient who does not quote ABN

16‑170 Form and content of payment summary

16‑175 Penalty for not providing payment summary

16‑180 Commissioner may exempt entity from giving payment summary

16‑182 Definition of reportable employer superannuation contribution

Subdivision 16‑D—Additional rights and obligations of entity that makes a payment

16‑195 Payer’s right to recover amounts of penalty: certain withholding taxes

Division 18—Recipient’s entitlements and obligations

Subdivision 18‑A—Crediting withheld amounts

Guide to Subdivision 18‑A

18‑1 What this Subdivision is about

General exception

18‑5 No credit for refunded amount

Entitlement to credits: income tax liability

18‑10 Application of sections 18‑15, 18‑20 and 18‑25

18‑15 Tax credit for recipient of withholding payments

18‑20 Tax credit where recipient is a partnership

18‑25 Tax credit where recipient is a trust

18‑27 Tax credit for alienated personal services payments

Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program

18‑30 Credit: dividend, interest or royalty

18‑32 Credit: amount attributable to fund payment

18‑33 Credit: Seasonal Labour Mobility Program

18‑35 Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge

18‑40 Credit: liability under Part 4‑25

Entitlement to credit: departing Australia superannuation payment

18‑42 Credit—departing Australia superannuation payment

Entitlement to credit: mining payment

18‑45 Credit—mining payment

Entitlement to credit: Petroleum resource rent tax

18‑55 Credit—Natural resource payments

Subdivision 18‑B—Refund of certain withheld amounts

18‑65 Refund of withheld amounts by the payer to the recipient

18‑70 Refund of withheld amounts by the Commissioner to the recipient

18‑80 Refund by Commissioner of amount withheld from payment in respect of investment

Subdivision 18‑C—Recipient’s obligations

18‑100 Obligation to keep payment summary

Subdivision 18‑D—Directors etc. of non‑complying companies

Object of Subdivision

18‑120 Object of Subdivision

PAYG withholding non‑compliance tax

18‑125 Directors of non‑complying companies

18‑130 Directors of non‑complying companies—tax reduced in certain circumstances

18‑135 Associates of directors of non‑complying companies

18‑140 Notices

18‑145 When PAYG withholding non‑compliance tax must be paid

18‑150 General interest charge payable on unpaid PAYG withholding non‑compliance tax

18‑155 Validity of decisions and evidence

18‑160 Rights of indemnity and contribution

Credits for later compliance

18‑165 Credits for later compliance—scope

18‑170 Credits for later compliance—Commissioner must give notice in certain circumstances

18‑175 Credits for later compliance—Commissioner may give notice

18‑180 Effect of earlier credits

Other provisions

18‑185 When Commissioner may give notice

18‑190 Review of decisions

Division 20—Other matters

Subdivision 20‑B—Offences

20‑35 Offences

20‑40 Joining of charges

20‑45 Offences that would otherwise be committed by a partnership or unincorporated company

Subdivision 20‑D—Review of decisions

20‑80 Reviewable decisions

Division 21—Entitlements relating to insolvent ADIs and general insurers

Guide to Division 21 347

21‑1 What this Division is about

Subdivision 21‑A—Treatment of some payments by APRA

21‑5 APRA treated like ADI or general insurance company

Part 2‑10—Pay as you go (PAYG) instalments

Division 45—Instalment payments

Guide to Division 45 350

45‑1 What this Division is about

Subdivision 45‑A—Basic rules

45‑5 Object of this Part

45‑10 Application of Part

45‑15 Liability for instalments

45‑20 Information to be given to the Commissioner by certain payers

45‑25 Penalty for failure to notify Commissioner

45‑30 Credit for instalments payable

Subdivision 45‑B—When instalments are due

45‑50 Liability to pay instalments

45‑60 Meaning of instalment quarter

45‑61 When quarterly instalments are due—payers of quarterly instalments

45‑65 Meaning of instalment month

45‑67 When monthly instalments are due—payers of monthly instalments

45‑70 When annual instalments are due

45‑72 Means of payment of instalment

45‑75 Instalments recoverable in same way as income tax

45‑80 General interest charge on late payment

45‑90 Commissioner may withdraw instalment rate

Subdivision 45‑C—Working out instalment amounts

45‑110 How to work out amount of quarterly instalment on instalment income basis

45‑112 Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax

45‑114 How to work out amount of monthly instalment

45‑115 How to work out amount of annual instalment

45‑120 Meaning of instalment income

Subdivision 45‑D—Quarterly payers

45‑125 Quarterly payer who pays instalments on the basis of instalment income

45‑130 Quarterly payer who pays on the basis of GDP‑adjusted notional tax

45‑132 Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax

45‑134 Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax

Subdivision 45‑DA—Monthly payers

45‑136 Monthly payer

45‑138 Monthly payer requirement

Subdivision 45‑E—Annual payers

When you start and stop being an annual payer

45‑140 Choosing to pay annual instalments

45‑145 Meaning of instalment group

45‑150 Entity stops being annual payer if involved with GST registration or instalment group

45‑155 Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly

45‑160 Head company of a consolidated group stops being annual payer

Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income

45‑200 Application

45‑205 Choosing a varied instalment rate

45‑210 Notifying Commissioner of varied instalment rate

45‑215 Credit on using varied rate in certain cases

Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low

45‑225 Effect of Subdivision in relation to monthly payers

45‑230 Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate

45‑232 Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax

45‑233 Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment

45‑235 Liability to GIC on shortfall in annual instalment

45‑240 Commissioner may remit general interest charge

Subdivision 45‑H—Partnership income

45‑260 Instalment income for a period in which you are in a partnership

Subdivision 45‑I—Trust income included in instalment income of beneficiary

45‑280 Instalment income for a period in which you are a beneficiary of a trust

45‑285 Instalment income includes distributions by certain resident unit trusts

45‑286 Instalment income includes distributions by certain managed investment trusts

45‑287 When trusts are disqualified due to concentrated ownership

45‑288 Resident investment trusts for beneficiaries who are absolutely entitled

45‑290 Exceptions to exclusion of trust capital gains from beneficiary’s instalment income

Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax

45‑320 Working out instalment rate

45‑325 Working out your notional tax

45‑330 Working out your adjusted taxable income

45‑335 Working out your adjusted withholding income

45‑340 Adjusted tax on adjusted taxable income or on adjusted withholding income

Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax

45‑355 When Commissioner works out benchmark instalment rate and benchmark tax

45‑360 How Commissioner works out benchmark instalment rate

45‑365 Working out your benchmark tax

45‑370 Working out your adjusted assessed taxable income for the variation year

45‑375 Adjusted assessed tax on adjusted assessed taxable income

Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax

45‑400 Working out amount of instalment—payers of 4 quarterly instalments

45‑402 Working out amount of instalment—payers of 2 quarterly instalments

45‑405 Working out your GDP‑adjusted notional tax

Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax

45‑410 Working out amount of instalment—payers of 4 quarterly instalments

45‑412 Working out amount of instalment—payers of 2 quarterly instalments

45‑415 Estimating your benchmark tax

45‑420 Credit in certain cases where amount of instalment is nil

Subdivision 45‑N—How this Part applies to the trustee of a trust

Trustees to whom this Part applies

45‑450 Trustees to whom a single instalment rate is given

45‑455 Trustees to whom several instalment rates are given

45‑460 Rest of Subdivision applies only to multi‑rate trustees

45‑465 Meaning of instalment income

45‑468 Multi‑rate trustee may pay quarterly instalments

How Commissioner works out instalment rate and notional tax for a multi‑rate trustee

45‑470 Working out instalment rate

45‑473 Commissioner must notify you of notional tax

45‑475 Working out your notional tax

45‑480 Working out your adjusted taxable income

45‑483 Meaning of reduced beneficiary’s share and reduced no beneficiary’s share

45‑485 Working out your adjusted withholding income

How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee

45‑525 When Commissioner works out benchmark instalment rate and benchmark tax

45‑530 How Commissioner works out benchmark instalment rate

45‑535 Working out your benchmark tax

Subdivision 45‑P—Anti‑avoidance rules

45‑595 Object of this Subdivision

45‑597 Effect of Subdivision in relation to instalment months

45‑600 General interest charge on tax benefit relating to instalments

45‑605 When do you get a tax benefit from a scheme?

45‑610 What is your tax position for an income year?

45‑615 What is your hypothetical tax position for an income year?

45‑620 Amount on which GIC is payable, and period for which it is payable

45‑625 Credit if you also got a tax detriment from the scheme

45‑630 When do you get a tax detriment from a scheme?

45‑635 No tax benefit or detriment results from choice for which income tax law expressly provides

45‑640 Commissioner may remit general interest charge in special cases

Subdivision 45‑Q—General rules for consolidated groups

Guide to Subdivision 45‑Q

45‑700 What this Subdivision is about

Application of Subdivision

45‑703 Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers

45‑705 Application of Subdivision to head company

Usual operation of this Part for consolidated group members

45‑710 Single entity rule

45‑715 When instalments are due—modification of section 45‑61

45‑720 Head company cannot be an annual payer—modification of section 45‑140

Membership changes

45‑740 Change of head company

45‑755 Entry rule (for an entity that becomes a subsidiary member of a consolidated group)

45‑760 Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group)

45‑775 Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax

Subdivision 45‑R—Special rules for consolidated groups

Guide to Subdivision 45‑R

45‑850 What this Subdivision is about

Operative provisions

45‑855 Section 701‑1 disregarded for certain purposes

45‑860 Member having a different instalment period

45‑865 Credit rule

45‑870 Head company’s liability to GIC on shortfall in quarterly instalment

45‑875 Other rules about the general interest charge

45‑880 Continued application of Subdivision 45‑Q to the head company of an acquired group

45‑885 Early application of Subdivision 45‑Q to the head company of a new group

Subdivision 45‑S—MEC groups

Guide to Subdivision 45‑S

45‑900 What this Subdivision is about

Preliminary 

45‑905 Objects of Subdivision

General modification rules

45‑910 Extended operation of Part to cover MEC groups

Extended operation of Subdivision 45‑Q

45‑913 Sections 45‑705 and 45‑740 do not apply to members of MEC groups

45‑915 Application of Subdivision 45‑Q to provisional head company

45‑917 Assumption for applying section 45‑710 (single entity rule)

45‑920 Change of provisional head company

45‑922 Life insurance company

Extended operation of Subdivision 45‑R

45‑925 Additional modifications of sections 45‑855 and 45‑860

45‑930 Modifications of sections 45‑865 and 45‑870 and a related provision

45‑935 Additional modifications of section 45‑885

Part 2‑15—Returns and assessments

Division 70—Tax receipts

Guide to Division 70 492

70‑1 What this Division is about

Subdivision 70‑A—Tax receipts

70‑5 Tax receipt to be provided to certain individual taxpayers

Part 2‑30—Collecting Medicare levy with income tax

Division 90—Medicare levy and Medicare levy surcharge

Subdivision 90‑A—Treatment like income tax

90‑1 Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax

Part 2‑35—Excess superannuation contributions

Division 95—Excess concessional contributions charge

Guide to Division 95 496

95‑1 What this Division is about

Subdivision 95‑A—Object of Division

95‑5 Object of Division

Subdivision 95‑B—Excess concessional contributions charge

95‑10 Liability to excess concessional contributions charge

95‑15 Amount of excess concessional contributions charge

95‑20 When excess concessional contributions charge is due and payable

95‑25 General interest charge

Division 96—Releasing money from superannuation

Subdivision 96‑A—Releasing money from superannuation

Guide to Subdivision 96‑A

96‑1 What this Subdivision is about

Requesting a release authority

96‑5 Electing to release excess concessional contributions

96‑7 Electing to release non‑concessional contributions etc.

Issuing a release authority to superannuation provider

96‑10 Release authorities for elections under section 96‑5

96‑12 Release authorities for elections under section 96‑7

96‑15 Varying and revoking a release authority

Complying with a release authority

96‑20 Obligations of superannuation providers

96‑25 Voluntary compliance with a release authority relating to voluntary release interests and defined benefit interests

96‑30 Meaning of maximum available release amount

96‑35 Notifying Commissioner

96‑40 Notifying individual—unsuccessful release attempt

96‑42 Notifying individual—successful releases under section 96‑12

96‑45 Compensation for acquisition of property

Consequences of releasing amounts

96‑50 Entitlement to credits

96‑55 Interest for late payments of money received by the Commissioner in accordance with release authority

96‑60 Income tax treatment of amounts released—proportioning rule does not apply

Division 97—Excess contributions determinations

Subdivision 97‑A—Excess concessional contributions determinations

Guide to Subdivision 97‑A

97‑1 What this Subdivision is about

Operative provisions

97‑5 Determination of excess concessional contributions and charge

97‑10 Review

Subdivision 97‑B—Excess non‑concessional contributions determinations

Guide to Subdivision 97‑B

97‑20 What this Subdivision is about

Operative provisions

97‑25 Excess non‑concessional contributions determinations

97‑30 Associated earnings

97‑35 Review

An Act to provide for the administration of certain Acts relating to Taxation, and for purposes connected therewith

Part I—Preliminary

1  Short title

  This Act may be cited as the Taxation Administration Act 1953.

2  Interpretation

 (1) In this Act (except Schedule 1), unless the contrary intention appears:

approved form has the meaning given by Schedule 1.

ASIO means the Australian Security Intelligence Organisation.

assessable amount has the meaning given by subsection 155‑5(2) in Schedule 1.

Australia, when used in a geographical sense, has the same meaning as in the Income Tax Assessment Act 1997.

Commissioner means the Commissioner of Taxation.

Deputy Commissioner means any Deputy Commissioner of Taxation.

Director‑General of Security means the Director‑General of Security holding office under the Australian Security Intelligence Organisation Act 1979.

engage in conduct means:

 (a) do an act; or

 (b) omit to perform an act.

excess concessional contributions determination has the same meaning as in subsection 995‑1(1) of the Income Tax Assessment Act 1997.

excise law has the meaning given by the Income Tax Assessment Act 1997.

exempt Australian government agency has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.

failure to notify penalty means the penalty worked out under Division 2 of Part IIA.

fuel tax law has the meaning given by the Fuel Tax Act 2006.

general interest charge means the charge worked out under Part IIA.

Immigration Department has the meaning given by the Income Tax Assessment Act 1997.

Immigration Secretary has the meaning given by the Income Tax Assessment Act 1997.

indirect tax law has the meaning given by the Income Tax Assessment Act 1997.

ineligible income tax remission decision has the meaning given by section 14ZS.

late reconciliation statement penalty means the penalty worked out under Division 3 of Part IIA.

migration officer means:

 (a) the Immigration Secretary; or

 (b) an employee of the Immigration Department.

objection decision has the meaning given by subsection 14ZY(2).

officer means a person appointed or engaged under the Public Service Act 1999.

private indirect tax ruling means a private ruling, to the extent that it relates to an indirect tax law (other than the fuel tax law).

private ruling has the meaning given by section 359‑5 in Schedule 1.

registered tax agent or BAS agent has the same meaning as in the Tax Agent Services Act 2009.

Second Commissioner means a Second Commissioner of Taxation.

taxation law has the meaning given by the Income Tax Assessment Act 1997.

Note: See also subsection (2).

tax liability means a liability to the Commonwealth arising under, or by virtue of, a taxation law.

Tribunal means the Administrative Appeals Tribunal.

 (2) Despite the definition of taxation law in subsection (1), an Excise Act (as defined in subsection 4(1) of the Excise Act 1901) is not a taxation law for the purposes of Part III of this Act.

2A  Application of the Criminal Code

  Chapter 2 of the Criminal Code applies to all offences against this Act.

Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

2B  Act binds the Crown

  This Act binds the Crown in each of its capacities. However, it does not make the Crown liable to a pecuniary penalty or to be prosecuted for an offence.

3  Application

  This Act extends to every external Territory referred to in the definition of Australia.

3AA  Schedule 1

 (1) Schedule 1 has effect.

Definitions in Schedule 1 do not apply to rest of Act

 (1A) So far as a provision in Schedule 1 gives an expression a particular meaning, the provision does not also have effect for the purposes of this Act (other than Schedule 1), except as provided in this Act (other than Schedule 1).

Application of interpretation provisions of Income Tax Assessment Act 1997

 (2) An expression has the same meaning in Schedule 1 as in the Income Tax Assessment Act 1997.

 (3) Division 950 of the Income Tax Assessment Act 1997 (which contains rules for interpreting that Act) applies to Schedule 1 to this Act as if the provisions in that Schedule were provisions of that Act.

Part IA—Administration

3A  General administration of Act

  The Commissioner has the general administration of this Act.

Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1.

3B  Annual report

 (1) The Commissioner shall, as soon as practicable after 30 June in each year, prepare and furnish to the Minister a report on the working of this Act.

 (1AA) A report under subsection (1) in relation to a year ending on 30 June shall:

 (b) set out:

 (i) the number of occasions (if any) during the year on which a request was made to disclose information under subsection 355‑55(1) in Schedule 1 (about disclosures to Ministers); and

 (ii) the number of occasions (if any) during the year on which information was disclosed under that subsection; and

 (iii) the Ministers to whom the information was disclosed; and

 (c) set out:

 (i) the number of occasions (if any) during the year on which a request was made to disclose information under subsection 355‑70(1) in Schedule 1 (about disclosures for law enforcement and related purposes); and

 (ii) the number of occasions (if any) during the year on which information was disclosed under that subsection; and

 (iii) the types of entities and the names of the courts and tribunals to which the information was disclosed; and

 (iv) if the information was disclosed under table item 1 or 6 in subsection 355‑70(1)—the general categories of offences in relation to which the information was disclosed; and

 (d) set out the number (if any) of *taxation officers found guilty of the offence in section 355‑25 in Schedule 1 (about disclosure of protected information).

 (1B) Subsection (1) does not apply in relation to Part III and sections 15 and 15A insofar as that Part and those sections apply in relation to the Development Allowance Authority Act 1992.

 (1C) Subsection (1) does not apply in relation to sections 3D and 3E, Part III and sections 15 and 15A insofar as that Part and those sections apply in relation to the Tax Agent Services Act 2009.

 (2) The Minister shall cause a copy of a report furnished under subsection (1) to be laid before each House of the Parliament within 15 sitting days of that House after the day on which the Minister receives the report.

 (3) For the purposes of section 34C of the Acts Interpretation Act 1901, a report that is required by subsection (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.

 (4) In this section:

this Act does not include Part IVC.

3C  Reporting of information about corporate tax entity with reported total income of $100 million or more

 (1) This section applies to a corporate tax entity for an income year if, according to information reported to the Commissioner in the entity’s income tax return for the income year:

 (a) the entity has total income equal to or exceeding $100 million for the income year and, at the end of the income year:

 (i) the entity is not an Australian resident that is a private company for the income year; or

 (ii) the entity is a member of a wholly‑owned group that has a foreign resident ultimate holding company; or

 (iii) the percentage of foreign shareholding in the entity is greater than 50%; or

 (b) the entity has total income equal to or exceeding $200 million for the income year and, at the end of the income year, the entity is an Australian resident that is a private company for the income year.

An expression used in this subsection that is also used in the Income Tax Assessment Act 1997 has the same meaning as in that Act.

 (2) The Commissioner must, as soon as practicable after the end of the income year, make publicly available the information mentioned in subsection (3).

 (3) The information is as follows:

 (a) the entity’s ABN (within the meaning of the Income Tax Assessment Act 1997) and name;

 (b) the entity’s total income for the income year, according to information reported to the Commissioner in the entity’s income tax return (within the meaning of that Act) for the income year;

 (c) the entity’s taxable income or net income (if any) for the income year, according to information reported to the Commissioner in that income tax return;

 (d) the entity’s income tax payable (if any) for the financial year corresponding to the income year, according to information reported to the Commissioner in that income tax return.

 (4) Subsection (5) applies if:

 (a) the entity gives the Commissioner a notice in writing that the return mentioned in paragraph (3)(b) contains an error; and

 (b) the notice contains information that corrects the error.

 (5) The Commissioner may at any time make the information mentioned in paragraph (4)(b) publicly available, in accordance with subsection (2), in order to correct the error.

 (6) To avoid doubt, if the Commissioner considers that information made publicly available under subsection (2) fails to reflect all of the information required to be made publicly available under that subsection, the Commissioner may at any time make publicly available other information in order to remedy the failure.

3CA  Reporting of information by significant global entities

 (1) This section applies to a corporate tax entity for an income year if:

 (a) the entity is a significant global entity for the income year; and

 (b) at the end of the income year, the entity is:

 (i) an Australian resident; or

 (ii) a foreign resident who operates an Australian permanent establishment (within the meaning of Part IVA of the Income Tax Assessment Act 1936); and

 (c) the entity does not lodge a general purpose financial statement for the financial year most closely corresponding to the income year:

 (i) with the Australian Securities and Investments Commission; and

 (ii) within the time provided under subsection 319(3) of the Corporations Act 2001 for lodgement of a report for that financial year.

 (2) A corporate tax entity to which this section applies for an income year must, on or before the day by which the entity is required to lodge its income tax return for the income year with the Commissioner, give to the Commissioner a general purpose financial statement for the financial year most closely corresponding to the income year.

Note: Section 286‑75 in Schedule 1 provides an administrative penalty for breach of this subsection.

 (3) The Commissioner must give a copy of the statement to the Australian Securities and Investments Commission.

 (4) The giving of the copy to the Australian Securities and Investments Commission under subsection (3) is taken, for the purposes of the Corporations Act 2001, to be lodgement of the document with the Australian Securities and Investments Commission.

Note: Under section 1274 of the Corporations Act 2001, a person may inspect, and require to be given a copy or extract of, any document lodged with the Australian Securities and Investments Commission.

 (5) For the purposes of this section, a general purpose financial statement in relation to an entity:

 (a) must be prepared in accordance with:

 (i) the accounting principles; or

 (ii) if accounting principles do not apply in relation to the entity—commercially accepted principles relating to accounting; and

 (b) if the entity is a member of a group of entities that are consolidated for accounting purposes as a single group—must relate to:

 (i) the entity; or

 (ii) the entity and some or all of the other members of the group.

 (6) An expression used in this section that is also used in the Income Tax Assessment Act 1997 has the same meaning as in that Act.

3E  Reporting of information about entity with PRRT payable

 (1) This section applies to an entity if the entity has an amount of PRRT payable for a year of tax, according to information reported to the Commissioner in the entity’s PRRT return for the year of tax.

 (2) The Commissioner must, as soon as practicable after the end of the year of tax, make publicly available the information mentioned in subsection (3).

 (3) The information is as follows:

 (a) the entity’s ABN (within the meaning of the Income Tax Assessment Act 1997) and name;

 (b) the PRRT payable by the entity in respect of the year of tax, according to information reported to the Commissioner in the entity’s PRRT return for the year of tax.

 (4) Subsection (5) applies if:

 (a) the entity gives the Commissioner a notice in writing that the return mentioned in paragraph (3)(b) contains an error; and

 (b) the notice contains information that corrects the error.

 (5) The Commissioner may at any time make the information mentioned in paragraph (4)(b) publicly available, in accordance with subsection (2), in order to correct the error.

 (6) To avoid doubt, if the Commissioner considers that information made publicly available under subsection (2) fails to reflect all of the information required to be made publicly available under that subsection, the Commissioner may at any time make publicly available other information in order to remedy the failure.

 (7) In this section:

PRRT return means a return under section 59 or 60 of the Petroleum Resource Rent Tax Assessment Act 1987.

year of tax has the meaning given by the Petroleum Resource Rent Tax Assessment Act 1987.

Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation

4  Commissioner and Second Commissioners of Taxation

  There shall be a Commissioner of Taxation and 3 Second Commissioners of Taxation, who shall be appointed by the Governor‑General.

4A  Statutory Agency etc. for purposes of Public Service Act

 (1) The staff necessary to assist the Commissioner are to be persons engaged under the Public Service Act 1999.

 (2) For the purposes of the Public Service Act 1999:

 (a) the Commissioner and the APS employees assisting the Commissioner together constitute a Statutory Agency; and

 (b) the Commissioner is the Head of that Statutory Agency.

5  Tenure of Commissioner and Second Commissioners

 (1) The Commissioner of Taxation and each Second Commissioner of Taxation shall be appointed for terms of 7 years respectively and shall be eligible for re‑appointment.

 (3) The Commissioner of Taxation and the Second Commissioners of Taxation are not subject to the Public Service Act 1999.

5A  Remuneration and allowances of Commissioner and Second Commissioners

 (1) The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such remuneration as is determined by the Remuneration Tribunal but, if no determination of that remuneration by the Tribunal is in operation, they shall be paid remuneration at the respective rates that were applicable immediately before the commencement of this section.

 (2) The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such allowances as are prescribed.

 (3) This section has effect subject to the Remuneration Tribunal Act 1973.

6  Leave of absence

 (1) The Commissioner and a Second Commissioner have such recreation leave entitlements as are determined by the Remuneration Tribunal.

 (2) The Minister may grant the Commissioner and a Second Commissioner leave of absence, other than recreation leave, on such terms and conditions as to remuneration or otherwise as the Minister determines.

6A  Resignation

  The Commissioner or a Second Commissioner may resign his or her office by writing signed by the Commissioner or Second Commissioner, as the case may be, and delivered to the Governor‑General.

6B  Acting appointments

 (1) The Minister may appoint a person to act in the office of Commissioner of Taxation:

 (a) during a vacancy in that office; or

 (b) during any period, or during all periods, when the person holding that office is absent from duty or from Australia or is, for any other reason, unable to perform the functions of that office.

Note: For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901.

 (2) The Minister may appoint a person to act in an office of Second Commissioner of Taxation:

 (a) during a vacancy in that office; or

 (b) during any period, or during all periods, when the person holding the office of Second Commissioner of Taxation is absent from duty or from Australia, is acting in the office of Commissioner of Taxation or is, for any other reason, unable to perform the functions of the office of Second Commissioner of Taxation.

Note: For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901.

 (6) While a person is acting in the office of Commissioner of Taxation, the person has and may exercise all the powers, and shall perform all the functions, of the Commissioner under this Act or any other law.

 (6A) For the purposes of subsection (6), the Commissioner’s powers and functions include powers and functions given to the Commissioner in his or her capacity as Registrar of the Australian Business Register.

 (7) While a person is acting in an office of Second Commissioner of Taxation, the person has and may exercise all the powers, and shall perform all the functions, of the Second Commissioner under this Act or any other law.

6C  Suspension and removal from office of Commissioner or Second Commissioner

 (1) The Governor‑General may remove the Commissioner or a Second Commissioner from office on an address praying for the removal of the Commissioner or the Second Commissioner, as the case may be, on the ground of proved misbehaviour or physical or mental incapacity being presented to the Governor‑General by each House of the Parliament in the same session of the Parliament.

 (2) The Governor‑General may suspend the Commissioner or a Second Commissioner from office on the ground of misbehaviour or physical or mental incapacity.

 (3) Where the Governor‑General suspends the Commissioner or a Second Commissioner, the Minister shall cause a statement of the grounds of the suspension to be laid before each House of the Parliament within 7 sitting days of that House after the suspension.

 (4) If, at the expiration of 15 sitting days of a House of the Parliament after the day on which the statement was laid before that House, an address under subsection (1) has not been presented to the Governor‑General by each House of the Parliament, the suspension terminates.

 (5) The suspension of the Commissioner or a Second Commissioner from office under this section does not affect any entitlement of the Commissioner or Second Commissioner, as the case may be, to be paid remuneration and allowances.

 (6) If:

 (a) the Commissioner or a Second Commissioner becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his or her creditors or makes an assignment of his or her remuneration for their benefit;

 (b) the Commissioner or a Second Commissioner engages, except with the approval of the Minister, in paid employment outside the duties of the office of Commissioner or Second Commissioner, as the case may be; or

 (c) the Commissioner or a Second Commissioner is absent from duty, except on leave of absence, for 14 consecutive days or 28 days in any 12 months;

the Governor‑General shall remove the Commissioner or Second Commissioner, as the case may be, from office.

 (7) The Governor‑General may, with the consent of the Commissioner or a Second Commissioner, retire the Commissioner or Second Commissioner, as the case may be, from office on the ground of physical or mental incapacity.

 (8) The Commissioner or a Second Commissioner shall not be suspended, removed or retired from office except as provided by this section.

6D  Powers of Second Commissioner

 (1) Subject to subsection (2) and to the regulations, a Second Commissioner has all the powers, and may perform all the functions, of the Commissioner under a taxation law.

 (2) Subsection (1) does not apply in relation to:

 (a) section 8 of this Act; or

 (b) a provision of a taxation law that:

 (i) provides that the Commissioner has the general administration of the taxation law; or

 (ii) requires the Commissioner to furnish to the Minister a report on the working of the taxation law during any period.

 (3) When a power or function of the Commissioner under a taxation law is exercised or performed by a Second Commissioner, the power or function shall, for the purposes of the taxation law, be deemed to have been exercised or performed by the Commissioner.

 (4) The exercise of a power, or the performance of a function, of the Commissioner under a taxation law by a Second Commissioner does not prevent the exercise of the power, or the performance of the function, by the Commissioner.

7  Deputy Commissioners of Taxation

  There shall be such Deputy Commissioners of Taxation as are required.

8  Delegation

 (1) The Commissioner may, either generally or as otherwise provided by the instrument of delegation, by writing signed by the Commissioner, delegate to a Deputy Commissioner or any other person all or any of the Commissioner’s powers or functions under a taxation law or any other law of the Commonwealth or a Territory, other than this power of delegation.

 (1A) For the purposes of this section, the Commissioner’s powers and functions include powers and functions given to the Commissioner in his or her capacity as Registrar of the Australian Business Register.

 (2) Subject to subsection (5), a power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of the taxation law or the other law, as the case may be, be deemed to have been exercised or performed by the Commissioner.

 (4) A delegation under this section does not prevent the exercise of a power or the performance of a function by the Commissioner.

 (5) A delegation under this section may be made subject to a power of review and alteration by the Commissioner, within a period specified in the instrument of delegation, of acts done in pursuance of the delegation.

 (6) A delegation under this section continues in force notwithstanding a change in the occupancy of, or a vacancy in, the office of Commissioner, but, for the purposes of the application of subsection 33(3) of the Acts Interpretation Act 1901 to a delegation under this section, nothing in any law shall be taken to preclude the revocation or variation of the delegation by the same or a subsequent holder of that office.

Part IIA—The general interest charge

8AAA  Overview

8AAB  When the general interest charge applies

 (1) There are certain provisions of this Act and other Acts that make persons liable to pay the general interest charge. Subsection (4) lists the provisions.

 (2) A person is only liable to pay the charge on an amount if a provision specifies that the person is liable to pay the charge on the amount.

 (3) The charge does not apply to the Commonwealth or an authority of the Commonwealth.

 (4) The following table is an index of the laws that deal with liability to the charge.

8AAC  Amount of the general interest charge

 (1) The general interest charge for a day is worked out in accordance with this section.

 (2) If the charge is payable under section 8AAZF on the RBA deficit at the end of that day, then the charge is worked out by multiplying the general interest charge rate for that day by the RBA deficit at the end of that day.

 (3) If the charge is not payable under section 8AAZF, but applies to an amount that remains unpaid (the original unpaid amount), then the charge is worked out by multiplying the general interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:

 (a) the charge from previous days;

 (b) the original unpaid amount.

 (4) If the charge applies to an amount that is specified in the provision that imposes the charge, but neither subsection (2) nor (3) applies, then the charge is worked out by multiplying the general interest charge rate for that day by the sum of the following amounts:

 (a) so much of the charge from previous days as remains unpaid;

 (b) the specified amount.

8AAD  What is the general interest charge rate?

 (1) The general interest charge rate for a day is the rate worked out by adding 7 percentage points to the base interest rate for that day, and dividing that total by the number of days in the calendar year.

 (2) The base interest rate for a day depends on which quarter of the year the day is in. For each day in a quarter in the second column of the table, it is the monthly average yield of 90‑day Bank Accepted Bills published by the Reserve Bank of Australia for the month in the third column of the table.

 (3) If the monthly average yield of 90‑day Bank Accepted Bills for a particular month in the third column of the table in subsection (2) is not published by the Reserve Bank of Australia before the beginning of the relevant quarter, assume that it is the same as the last monthly average yield of 90‑day Bank Accepted Bills published by the Reserve Bank of Australia before that month.

 (4) The base interest rate must be rounded to the second decimal place (rounding .005 upwards).

8AAE  When the charge is due and payable

  The general interest charge for a day is due and payable to the Commissioner at the end of that day.

Note: For provisions about collection and recovery of the charge, see Part 4‑15 in Schedule 1.

8AAF  Notification by Commissioner

 (1) The Commissioner may give notice to a person liable to pay the charge of the amount of the charge for a particular day or days.

 (3) The notice may be included in any other notice issued by the Commissioner in respect of the person.

 (4) A notice given to a person by the Commissioner under this section is prima facie evidence of the matters stated in the notice.

8AAG  Remission of the charge

 (1) The Commissioner may remit all or a part of the charge payable by a person.

 (2) However, if a person is liable to pay the charge because an amount remains unpaid after the time by which it is due to be paid, the Commissioner may only remit all or a part of the charge in the circumstances set out in subsection (3), (4) or (5).

 (3) The Commissioner may remit all or a part of the charge referred to in subsection (2) if the Commissioner is satisfied that:

 (a) the circumstances that contributed to the delay in payment were not due to, or caused directly or indirectly by, an act or omission of the person; and

 (b) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances.

 (4) The Commissioner may remit all or a part of the charge referred to in subsection (2) if the Commissioner is satisfied that:

 (a) the circumstances that contributed to the delay in payment were due to, or caused directly or indirectly by, an act or omission of the person; and

 (b) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; and

 (c) having regard to the nature of those circumstances, it would be fair and reasonable to remit all or a part of the charge.

 (5) The Commissioner may remit all or a part of the charge referred to in subsection (2) if the Commissioner is satisfied that:

 (a) there are special circumstances because of which it would be fair and reasonable to remit all or a part of the charge; or

 (b) it is otherwise appropriate to do so.

8AAGA  Rounding of the charge

  If the amount of the charge payable for any period is not a multiple of 5 cents, the Commissioner may round it down to the nearest multiple of 5 cents.

8AAH  Judgment for payment of an unpaid amount

 (1) This section applies if judgment is given by, or entered in, a court for the payment of:

 (a) all or a part of an amount in respect of which a person is, or was, liable to pay the charge because the amount remains unpaid after the time by which it is due to be paid; or

 (b) an amount that includes all or a part of the unpaid amount.

 (2) The consequences of judgment being given or entered are:

 (a) the unpaid amount is not taken, for the purposes of a provision that makes, or would make, the person liable to pay the charge on the unpaid amount, to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

 (b) if the judgment debt carries interest, the amount of the charge that the person would, if not for this paragraph, be liable to pay on the unpaid amount is reduced by:

 (i) in a case to which paragraph (1)(a) applies—the amount of the interest; or

 (ii) in a case to which paragraph (1)(b) applies—the amount worked out using the formula:

Part IIB—Running balance accounts, application of payments and credits, and related matters

Division 1—Preliminary

8AAZA  Definitions

  In this Part, unless the contrary intention appears:

company includes any body or association (whether or not it is incorporated), but does not include a partnership or a non‑entity joint venture.

compulsory ABSTUDY SSL repayment amount has the same meaning as in the Student Assistance Act 1973.

compulsory repayment amount has the same meaning as in the Higher Education Support Act 2003.

compulsory SSL repayment amount has the same meaning as in Chapter 2AA of the Social Security Act 1991.

compulsory TSL repayment amount has the same meaning as in the Trade Support Loans Act 2014.

credit includes:

 (a) an amount that the Commissioner must pay to a taxpayer under a taxation law (other than the Product Grants and Benefits Administration Act 2000 or Division 18 (refunds) of the A New Tax System (Luxury Car Tax) Act 1999), whether or not described as a credit; and

 (b) an amount received by the Commissioner in respect of a taxpayer as a result of the Commissioner having made a claim that is similar in nature to a foreign revenue claim (as defined in section 263‑10 in Schedule 1).

entity means any of the following:

 (a) a company;

 (b) a partnership;

 (c) a person in a particular capacity of trustee;

 (d) a body politic;

 (e) a corporation sole;

 (f) any other person.

excess non‑RBA credit means a credit that arises under section 8AAZLA or 8AAZLB.

FS assessment debt means an FS assessment debt under:

 (a) subsection 19AB(2) of the Social Security Act 1991; or

 (b) the Student Assistance Act 1973 as in force at a time on or after 1 July 1998.

non‑entity joint venture has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.

non‑RBA tax debt means a tax debt other than an RBA deficit debt.

primary tax debt means any amount due to the Commonwealth directly under a taxation law (other than, except in Division 4, the Product Grants and Benefits Administration Act 2000), including any such amount that is not yet payable.

RBA means a running balance account established under section 8AAZC.

RBA deficit debt, in relation to an RBA of an entity, means a balance in favour of the Commissioner, based on:

 (a) primary tax debts that have been allocated to the RBA and that are currently payable; and

 (b) payments made in respect of current or anticipated primary tax debts of the entity, and credits to which the entity is entitled under a taxation law, that have been allocated to the RBA.

RBA group means a GST group under Division 48 of the A New Tax System (Goods and Services Tax) Act 1999.

RBA statement means a statement prepared by the Commissioner under section 8AAZG.

RBA surplus, in relation to an RBA of an entity, means a balance in favour of the entity, based on:

 (a) primary tax debts that have been allocated to the RBA; and

 (b) payments made in respect of current or anticipated primary tax debts of the entity, and credits to which the entity is entitled under a taxation law, that have been allocated to the RBA.

secondary tax debt means an amount that is not a primary tax debt, but is due to the Commonwealth in connection with a primary tax debt.

Note: An example of a secondary tax debt is an amount due to the Commonwealth under an order of a court made in a proceeding for recovery of a primary tax debt.

tax debt means a primary tax debt or a secondary tax debt.

tax debtor means:

 (a) in relation to a tax debt—the person or persons who are liable for the tax debt; and

 (b) in relation to an RBA—the person or persons who are liable for the tax debts that are allocated to the RBA.

8AAZB  Trustee to be treated as separate entity for each capacity

  For the purposes of this Part, a person who is a trustee in more than one capacity is to be treated as a separate entity in relation to each of those capacities.

Division 2—Running Balance Accounts (or RBAs)

8AAZC  Establishment of RBAs

 (1) The Commissioner may establish one or more systems of accounts for primary tax debts.

Note: This section does not prevent the Commissioner from establishing other accounts that are not RBAs.

 (2) Each account is to be known as a Running Balance Account (or RBA).

 (3) An RBA may be established for any entity.

Note: The same person might be part of different entities. For example, a person might have a trustee capacity and also be a partner in a partnership. The person would then be a tax debtor in relation to each of the separate RBAs established for the trustee capacity and the partnership.

 (4) RBAs for entities may be established on any basis that the Commissioner determines.

 (4A) Without limiting subsection (4), separate RBAs may be established for different types of primary tax debts.

 (5) Without limiting subsection (4), separate RBAs may be established for:

 (a) different businesses or undertakings conducted by the same entity; or

 (b) different parts of the same business or undertaking; or

 (c) different periods.

8AAZD  Allocation of tax debts to RBAs

 (1) The Commissioner may allocate a primary tax debt to an RBA that has been established for that type of tax debt.

Note: General interest charge on an RBA deficit debt is not allocated to the RBA: it accrues automatically under section 8AAZF.

Separate RBAs for one entity

 (1A) If 2 or more RBAs for an entity have been established for that kind of tax debt, the Commissioner may allocate the debt to any one of those RBAs, or between any 2 or more of those RBAs, in the manner the Commissioner determines.

Note: Separate RBAs may be established for different businesses or undertakings conducted by the same entity, for different parts of the same business or undertaking or for different periods: see subsection 8AAZC(5).

Definition

 (2) In this section:

primary tax debt does not include:

 (a) general interest charge; or

 (b) an RBA deficit debt.

8AAZF  General interest charge on RBA deficit debt

 (1) If there is an RBA deficit debt at the end of a day, then general interest charge is payable by the tax debtor on that RBA deficit debt for that day.

 (2) The balance of the RBA is altered in the Commissioner’s favour by the amount of the general interest charge payable.

8AAZG  RBA statements

  The Commissioner may at any time prepare a statement for an RBA, containing such particulars as the Commissioner determines.

8AAZH  Liability for RBA deficit debt

 (1) If there is an RBA deficit debt on an RBA at the end of a day, the tax debtor is liable to pay to the Commonwealth the amount of the debt. The amount is due and payable at the end of that day.

Note: For provisions about collection and recovery of the amount, see Part 4‑15 in Schedule 1.

 (2) If there are several tax debtors, their liability for the debt is of the same kind as their liability for the tax debts that were allocated to the RBA.

Example: If the tax debtors are jointly and severally liable for the tax debts that were allocated to the RBA, they will also be jointly and severally liable for the RBA deficit debt.

8AAZI  RBA statement to be evidence

 (1) The production of an RBA statement:

 (a) is prima facie evidence that the RBA was duly kept; and

 (b) is prima facie evidence that the amounts and particulars in the statement are correct.

 (2) In this section:

RBA statement includes a document that purports to be a copy of an RBA statement and is signed by the Commissioner or a delegate of the Commissioner or by a Second Commissioner or Deputy Commissioner.

8AAZJ  Evidentiary certificate about RBA transactions etc.

 (1) In proceedings for recovery of an RBA deficit debt, a Commissioner’s certificate stating any of the following matters in respect of a specified RBA is prima facie evidence of those matters:

 (a) that no tax debts (other than general interest charge on the RBA deficit debt) were allocated to the RBA after the balance date shown on a specified RBA statement for the RBA;

 (b) that general interest charge is payable on the RBA deficit debt, as specified in the certificate;

 (c) that payments and credits were allocated to the RBA, as specified in the certificate;

 (d) that a specified amount was the RBA deficit debt on the date of the certificate.

 (2) In this section:

Commissioner’s certificate means a certificate signed by the Commissioner or a delegate of the Commissioner, or by a Second Commissioner or Deputy Commissioner.

Division 3—Treatment of payments, credits and RBA surpluses

8AAZL  Amounts covered by this Division

 (1) This Division sets out how the Commissioner must treat the following kinds of amount:

 (a) a payment the Commissioner receives in respect of a current or anticipated tax debt or tax debts of an entity;

 (b) a credit (including an excess non‑RBA credit) that an entity is entitled to under a taxation law;

 (c) an RBA surplus of an entity.

 (2) The Commissioner must treat each such amount using the method set out in section 8AAZLA or 8AAZLB (but not both).

Note: In either case, section 8AAZLC has some additional rules that apply to RBA surpluses and to certain excess non‑RBA credits.

 (3) However, the Commissioner does not have to treat an amount using either of those methods if doing so would require the Commissioner to apply the amount against a tax debt:

 (a) that is due but not yet payable; or

 (b) in respect of which the taxpayer has complied with an arrangement under section 255‑15 to pay the debt by instalments; or

 (c) in respect of which the Commissioner has agreed to defer recovery under section 255‑5.

 (4) Furthermore, the Commissioner does not have to treat an amount using either of those methods if:

 (a) doing so would require the Commissioner to apply the amount against a tax debt; and

 (b) the tax debt is a penalty that is due and payable under section 269‑20 in Schedule 1 (penalties for directors of non‑complying companies).

8AAZLA  Method 1—allocating the amount first to an RBA

 (1) The Commissioner may, in the manner he or she determines, allocate the amount to an RBA of the entity or, if the entity is a member of an RBA group, to an RBA of another member of the group.

 (2) The Commissioner must then also apply the amount against the following kinds of debts (if there are any):

 (a) tax debts that have been allocated to that RBA;

 (b) general interest charge on such tax debts.

 (3) To the extent that the amount is not applied under subsection (2), it gives rise to an excess non‑RBA credit in favour of the entity that:

 (a) is equal to the part of the amount that is not applied; and

 (b) relates to the RBA to which the amount was allocated.

8AAZLB  Method 2—applying the amount first against a non‑RBA tax debt

 (1) The Commissioner may, in the manner he or she determines, apply the amount against a non‑RBA tax debt of the entity or, if the entity is a member of an RBA group, against a non‑RBA tax debt of another member of the group.

 (2) If the non‑RBA tax debt is:

 (a) a tax debt that has been allocated to an RBA; or

 (b) general interest charge on such a tax debt;

the Commissioner must then also allocate the amount to that RBA.

 (3) To the extent that the amount is not applied under subsection (1), it gives rise to an excess non‑RBA credit in favour of the entity that is equal to the part of the amount that is not applied.

 (4) The excess non‑RBA credit relates to the RBA (if any) that the Commissioner determines and the balance of that RBA is adjusted in the entity’s favour by the amount of that credit.

Separate RBAs for one entity

 (5) If the non‑RBA tax debt mentioned in subsection (1) has been allocated to 2 or more RBAs, the Commissioner must allocate the amount applied between those RBAs in the proportions in which the tax debt was allocated.

Note: Separate RBAs may be established for different businesses or undertakings conducted by the same entity, for different parts of the same business or undertaking or for different periods: see subsection 8AAZC(5).

8AAZLC  RBA surplus and related credits must remain equivalent if one or the other is applied

RBA surpluses

 (1) If an RBA surplus is allocated or applied under this Division, the Commissioner must reduce by the same amount excess non‑RBA credits that relate to the RBA.

Excess non‑RBA credits

 (2) If, under this Division, an excess non‑RBA credit that relates to an RBA (the related RBA) is:

 (a) allocated to an RBA; or

 (b) applied against a non‑RBA tax debt;

the related RBA is adjusted in the Commissioner’s favour by the same amount.

8AAZLD  Special priority credits

  If, under this Division, the Commissioner is to apply a credit that arises under Schedule 1 to this Act (the PAYG system), the Commissioner must apply it, whether under section 8AAZLA or 8AAZLB:

 (aa) first, against any compulsory repayment amount of the entity; and

 (ab) then against any compulsory SSL repayment amount of the entity; and

 (ac) then against any compulsory ABSTUDY SSL repayment amount of the entity; and

 (ad) then against any compulsory TSL repayment amount of the entity; and

 (b) then against any FS assessment debt of the entity;

before applying it against other non‑RBA tax debts of the entity.

8AAZLE  Instructions to Commissioner not binding

  In doing anything under this Division, the Commissioner is not required to take account of any instructions of any entity.

Division 3A—Refunds of RBA surpluses and credits

8AAZLF  Commissioner must refund RBA surpluses and credits

 (1) The Commissioner must refund to an entity so much of:

 (a) an RBA surplus of the entity; or

 (b) a credit (including an excess non‑RBA credit) in the entity’s favour;

as the Commissioner does not allocate or apply under Division 3.

Voluntary payments only to be refunded on request

 (2) However, the Commissioner is not required to refund an RBA surplus or excess non‑RBA credit that arises because a payment is made in respect of an anticipated tax debt of an entity unless the entity later requests, in the approved manner, that the Commissioner do so.

 (3) On receiving such a request, the Commissioner must refund so much of the amount as the Commissioner does not allocate or apply under Division 3.

Effect of refunding RBA surplus

 (4) If the Commissioner refunds an RBA surplus under this section, the Commissioner must reduce by the same amount excess non‑RBA credits that relate to the RBA.

Effect of refunding credit that relates to an RBA

 (5) If, under this section, the Commissioner refunds an excess non‑RBA credit that relates to an RBA, the RBA is adjusted in the Commissioner’s favour by the same amount.

8AAZLG  Retaining refunds until information or notification given

 (1) The Commissioner may retain an amount that he or she otherwise would have to refund to an entity under section 8AAZLF, if the entity has not given the Commissioner a notification:

 (a) that affects or may affect the amount that the Commissioner refunds to the entity; and

 (b) that the entity is required to give the Commissioner under:

 (i) any of the BAS provisions (as defined in subsection 995‑1(1) of the Income Tax Assessment Act 1997); or

 (ii) any of the petroleum resource rent tax provisions (as defined in that subsection).

 (2) The Commissioner may retain the amount until the entity has given the Commissioner that notification or the Commissioner makes or amends an assessment of the amount, whichever happens first.

Note: Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in making the payment under subsection (2).

8AAZLGA  Retaining refunds while Commissioner verifies information

Commissioner may retain an amount

 (1) The Commissioner may retain an amount that he or she otherwise would have to refund to an entity under section 8AAZLF, if the entity has given the Commissioner a notification that affects or may affect the amount that the Commissioner refunds to the entity, and:

 (a) it would be reasonable to require verification of information (the notified information) that:

 (i) is contained in the notification; and

 (ii) relates to the amount that the Commissioner would have to refund; or

 (b) the entity has requested the Commissioner to retain the amount for verification of the notified information, and the request has not been withdrawn.

 (2) In deciding whether to retain the amount under this section, the Commissioner must, as far as the information available to the Commissioner at the time of making the decision reasonably allows, have regard to the following:

 (a) the likely accuracy of the notified information;

 (b) the likelihood that the notified information was affected by:

 (i) fraud or evasion; or

 (ii) intentional disregard of a taxation law; or

 (iii) recklessness as to the operation of a taxation law;

 (c) the impact of retaining the amount on the entity’s financial position;

 (d) whether retaining the amount is necessary for the protection of the revenue, including the likelihood that the Commissioner could recover any of the amount if the notified information were found to be incorrect after the amount had been refunded;

 (e) any complexity that would be involved in verifying the notified information;

 (f) the time for which the Commissioner has already retained the amount;

 (g) what the Commissioner has already done to verify the notified information;

 (h) whether the Commissioner has enough information to make an assessment relating to the amount (including information obtained from making further requests for information);

 (i) the extent to which the notified information is consistent with information that the entity previously provided;

 (j) any other relevant matter.

Informing the entity of the retention of the amount

 (3) The Commissioner must inform the entity (by serving a document on the entity or by other means) that he or she has retained the amount under this section. He or she must do so by the end of:

 (a) in a case to which paragraph 8AAZLF(1)(a) applies—the RBA interest day (within the meaning of section 12AF of the Taxation (Interest on Overpayments and Early Payments) Act 1983) for the RBA surplus of the entity; or

 (b) in any other case—the 30th day after the entity gives to the Commissioner the notification mentioned in subsection (1) of this section.

Note: Under Part 2A of the regulations, documents may be served on a person using the person’s preferred address for service.

 (4) In informing the entity that the amount is retained, the Commissioner may request information that he or she is aware will be required for the purposes of verifying the notified information.

How long the amount may be retained

 (5) The Commissioner may retain the amount under this section only until:

 (a) if paragraph (1)(a) applies—it would no longer be reasonable to require verification of the information; or

 (b) if the Commissioner fails to inform the entity, in accordance with subsection (3), that he or she has retained the amount under this section—the end of the day after the time by which, under that subsection, the Commissioner is required to inform the entity; or

 (c) in any case—there is a change to how much the Commissioner is required to refund, as a result of:

 (i) the Commissioner amending an assessment relating to the amount; or

 (ii) the Commissioner making or amending an assessment, under Division 105 in Schedule 1, relating to the amount;

whichever happens first.

Objecting to the decision to retain the amount

 (6) The entity may object to a decision of the Commissioner to retain the amount under this section in the manner set out in Part IVC, if the entity is dissatisfied with the decision.

Note: Interest on the amount may be payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983.

 (7) Before the end of the 7 days after the start of the period during which, under section 14ZW, the entity may object to the decision, the Commissioner must notify the entity, in writing, that the entity may object to the decision.

Note: For the start of the period for objecting to the decision, see paragraph 14ZW(1)(aad) and subsection 14ZW(4).

 (8) A failure to comply with subsection (7) does not affect the validity of the decision.

8AAZLGB  Retaining refunds until notification under Division 389 or ascertainment of liability

Commissioner may retain an amount

 (1) The Commissioner may retain an amount that he or she otherwise would have to refund to an entity under section 8AAZLF, if:

 (a) the Commissioner reasonably believes that the entity has made a payment as a result of which the entity:

 (i) is, or will be, required to notify the Commissioner under section 389‑5 in Schedule 1; or

 (ii) may notify the Commissioner under section 389‑15 in that Schedule; and

 (b) the entity has not notified the Commissioner of the amount under that section; and

 (c) the notification affects or may affect the amount that the Commissioner refunds to the entity.

 (2) The Commissioner must inform the entity that he or she has retained the amount under this section. He or she must do so within 14 days after the day on which the relevant RBA surplus or credit arose.

How long the amount may be retained

 (3) The Commissioner may retain the amount until:

 (a) the entity has given the Commissioner that notification (including notification of a nil amount); or

 (b) if subparagraph (1)(a)(i) applied—the Commissioner becomes reasonably satisfied that the entity is not required to give that notification; or

 (c) the Commissioner becomes reasonably satisfied that the entity does not have a liability (a PAYGW liability) to pay to the Commissioner an amount of a kind referred to in item 1 of the table in subsection 389‑5(1) in Schedule 1; or

 (d) the Commissioner ascertains (including as a result of making an estimate) the total amount of the entity’s outstanding PAYGW liabilities;

whichever happens first.

Note: Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in making the payment under subsection (3).

Objecting to the decision to retain the amount

 (4) The entity may object to a decision of the Commissioner to retain the amount under this section in the manner set out in Part IVC, if the entity is dissatisfied with the decision.