Contents
Schedule 1—Collection and recovery of income tax and other liabilities 1
Chapter 2—Collection, recovery and administration of income tax 1
Part 2‑1—Introduction to the Pay as you go (PAYG) system 1
Division 6—Guide to Parts 2‑5 and 2‑10 1
6‑1......................... What Parts 2‑5 and 2‑10 are about...................................... 1
6‑5......................... The Pay as you go (PAYG) system................................... 1
6‑10....................... How the amounts collected are dealt with........................... 2
Part 2‑5—Pay as you go (PAYG) withholding 3
Division 10—Guide to Part 2‑5 3
10‑1....................... What this Part is about........................................................ 3
10‑5....................... Summary of withholding payments.................................... 3
Division 11—Preliminary matters 6
11‑1....................... Object of this Part............................................................... 6
11‑5....................... Constructive payment......................................................... 6
Division 12—Payments from which amounts must be withheld 7
Subdivision 12‑A—General rules 7
12‑1....................... General exceptions.............................................................. 7
12‑5....................... What to do if more than one provision requires a withholding 8
12‑7....................... Division does not apply to alienated personal services payments 10
12‑10..................... Division does not apply to non‑cash benefits................... 10
12‑20..................... Application of Division and regulations to non‑share dividends 11
Subdivision 12‑B—Payments for work and services 11
12‑35..................... Payment to employee........................................................ 11
12‑40..................... Payment to company director............................................ 11
12‑45..................... Payment to office holder................................................... 12
12‑47..................... Payment to religious practitioners..................................... 12
12‑50..................... Return to work payment................................................... 12
12‑55..................... Voluntary agreement to withhold...................................... 13
12‑60..................... Payment under labour hire arrangement, or specified by regulations 14
Subdivision 12‑C—Payments for retirement or because of termination of employment 14
12‑80..................... Superannuation income streams and annuities.................. 14
12‑85..................... Superannuation lump sums and payments for termination of employment 15
12‑90..................... Unused leave payments.................................................... 15
Subdivision 12‑D—Benefit and compensation payments 15
12‑110................... Social Security or other benefit payment........................... 15
12‑115................... Commonwealth education or training payment................. 16
12‑120................... Compensation, sickness or accident payment................... 16
Subdivision 12‑E—Payments where TFN or ABN not quoted 16
Payment in respect of investment 17
12‑140................... Recipient does not quote tax file number.......................... 17
12‑145................... Investor becoming presently entitled to income of a unit trust 18
12‑150................... Limited application of section 12‑140 to payment under financial arrangement 18
12‑155................... When investor may quote ABN as alternative.................. 19
12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying 20
12‑165................... Exception for fully franked dividend................................ 20
12‑170................... Exception for payments below thresholds set by regulations 20
Payment of income of closely held trust where TFN not quoted 21
12‑175................... Trustee distributes income of closely held trust................ 21
12‑180................... Beneficiary becomes presently entitled to income of closely held trust 22
12‑185................... Exception for payments below thresholds set by regulations 24
Payment for a supply 24
12‑190................... Recipient does not quote ABN......................................... 24
Subdivision 12‑F—Dividend, interest and royalty payments 27
Dividends 28
12‑210................... Dividend payment to overseas person.............................. 28
12‑215................... Dividend payment received for foreign resident............... 28
12‑220................... Application to part of a dividend....................................... 29
12‑225................... Application to distribution by a liquidator or other person 29
Interest 29
12‑245................... Interest payment to overseas person................................. 29
12‑250................... Interest payment received for foreign resident.................. 29
12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 30
12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment 30
Royalties 31
12‑280................... Royalty payment to overseas person................................. 31
12‑285................... Royalty payment received for foreign resident.................. 31
General 32
12‑300................... Limits on amount withheld under this Subdivision........... 32
Subdivision 12‑FA—Departing Australia superannuation payments 32
12‑305................... Departing Australia superannuation payment................... 33
12‑310................... Limits on amount withheld under this Subdivision........... 33
Subdivision 12‑FAA—Excess untaxed roll‑over amount 33
12‑312................... Untaxed roll‑over superannuation benefits....................... 33
12‑313................... Limits on amount withheld under this Subdivision........... 33
Subdivision 12‑FB—Payments to foreign residents etc. 34
12‑315................... Payment to foreign resident etc......................................... 34
12‑317................... Payment received for foreign resident etc......................... 35
12‑319................... Exemptions from withholding obligations under this Subdivision 36
Subdivision 12‑FC—Seasonal Labour Mobility Program 37
12‑319A................ Payment to employee........................................................ 37
Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources 38
Mining on Aboriginal land 38
12‑320................... Mining payment................................................................ 38
Natural resources 38
12‑325................... Natural resource payment................................................. 38
12‑330................... Payer must ask Commissioner how much to withhold..... 39
12‑335................... Commissioner may exempt from section 12‑330, subject to conditions 40
Subdivision 12‑H—Distributions of managed investment trust income 40
Guide to Subdivision 12‑H 40
12‑375................... What this Subdivision is about......................................... 40
Operative provisions 42
12‑385................... Withholding by managed investment trusts...................... 42
12‑390................... Withholding by custodians and other entities.................... 43
12‑395................... Requirement to give notice or make information available 47
12‑400................... Meaning of managed investment trust.............................. 49
12‑401................... Trusts with wholesale membership................................... 51
12‑402................... Widely‑held requirements—ordinary case........................ 52
12‑402A................ Widely‑held requirements for registered MIT—special case for entities covered by subsection 12‑402(3).......................................................................................... 54
12‑402B................ Closely‑held restrictions................................................... 55
12‑403................... Licensing requirements for unregistered MIS................... 56
12‑404................... MIT participation interest.................................................. 57
12‑405................... Meaning of fund payment................................................. 57
12‑410................... Entity to whom payment is made...................................... 59
12‑415................... Failure to give notice or make information available: administrative penalty 60
12‑420................... Agency rules..................................................................... 60
12‑425................... Meaning of clean building managed investment trust...... 60
12‑430................... Meaning of clean building................................................ 61
Division 13—Alienated personal services payments 63
13‑1....................... Object of this Division...................................................... 63
13‑5....................... Payment to the Commissioner in respect of alienated personal services payments 63
13‑10..................... Alienated personal services payments............................... 66
13‑15..................... Personal services payment remitters................................. 66
13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01 67
Division 14—Non‑cash benefits, and accruing gains, for which amounts must be paid to the Commissioner 69
Subdivision 14‑A—Non‑cash benefits 69
14‑1....................... Object of this Subdivision................................................ 69
14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding....................................................................... 69
14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit 70
14‑15..................... Payer can recover amount paid to the Commissioner........ 71
Subdivision 14‑B—Accruing gains 71
14‑50..................... Object of this Subdivision................................................ 71
14‑55..................... Liability for TFN withholding tax..................................... 71
14‑60..................... Investment body may recover TFN withholding tax from investor 73
14‑65..................... Application of rules in Division 18................................... 73
14‑75..................... Overpayment of TFN withholding tax.............................. 74
14‑85..................... Other laws do not exempt from TFN withholding tax...... 74
Subdivision 14‑C—Shares and rights under employee share schemes 74
14‑155................... Liability for TFN withholding tax (ESS).......................... 74
14‑160................... Employer may give individual tax file numbers to provider 76
14‑165................... Provider may recover TFN withholding tax (ESS) from individual 76
14‑170................... Application of rules in Division 18................................... 76
14‑175................... Overpayment of TFN withholding tax (ESS)................... 76
14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997 77
Division 15—Working out the amount to withhold 78
Guide to Division 15 78
15‑1....................... What this Division is about............................................... 78
Subdivision 15‑A—Working out how much to withhold 78
15‑10..................... How much to withhold..................................................... 78
15‑15..................... Variation of amounts required to be withheld................... 79
Subdivision 15‑B—Withholding schedules and regulations 80
15‑25..................... Commissioner’s power to make withholding schedules... 80
15‑30..................... Matters to be considered when making withholding schedules 81
15‑35..................... Regulations about withholding......................................... 81
Subdivision 15‑C—Declarations 82
15‑50..................... Declarations...................................................................... 82
Division 16—Payer’s obligations and rights 84
Guide to Division 16 84
16‑1....................... What this Division is about............................................... 84
Subdivision 16‑A—To withhold 84
When to withhold 85
16‑5....................... When to withhold an amount............................................ 85
16‑20..................... Payer discharged from liability to recipient for amount withheld 85
Penalties for not withholding 85
16‑25..................... Failure to withhold: offence.............................................. 85
16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 86
16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty.............................. 87
16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment................................................ 87
16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc............................................................ 88
Subdivision 16‑B—To pay withheld amounts to the Commissioner 88
When and how to pay amounts to the Commissioner 89
16‑70..................... Entity to pay amounts to Commissioner........................... 89
16‑75..................... When amounts must be paid to Commissioner................. 89
16‑80..................... Penalty for failure to pay within time................................ 91
16‑85..................... How amounts are to be paid............................................. 91
Who is a large, medium or small withholder 92
16‑95..................... Meaning of large withholder............................................ 92
16‑100................... Meaning of medium withholder........................................ 93
16‑105................... Meaning of small withholder............................................ 93
16‑110................... Commissioner may vary withholder’s status downwards 94
16‑115................... Commissioner may vary withholder’s status upwards..... 94
Subdivision 16‑BA—To be registered 95
Registration of withholders 96
16‑140................... Withholders must be registered......................................... 96
16‑141................... Registration and cancellation............................................. 96
Branch registration 96
16‑142................... Branches may be registered.............................................. 96
16‑143................... Separate amounts for entities and branches....................... 97
16‑144................... Cancellation of branch registration.................................... 98
16‑145................... Effect on branches of cancelling the entity’s registration.. 98
Subdivision 16‑C—To provide information 98
To the Commissioner 99
16‑150................... Commissioner must be notified of amounts...................... 99
16‑152................... Annual reports—Withholding payments covered by section 12‑175 99
16‑153................... Annual reports—other payments.................................... 100
To recipients of withholding payments 102
16‑155................... Annual payment summary.............................................. 102
16‑156................... Annual payment summary for sections 12‑175 and 12‑180 104
16‑157................... Payment summary for Subdivision 12‑H....................... 105
16‑160................... Part‑year payment summary........................................... 105
16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment 106
16‑166................... Payment summary for a departing Australia superannuation payment 107
16‑167................... Payment summary for payment to recipient who does not quote ABN 107
16‑170................... Form and content of payment summary.......................... 107
16‑175................... Penalty for not providing payment summary.................. 109
16‑180................... Commissioner may exempt entity from giving payment summary 109
16‑182................... Definition of reportable employer superannuation contribution 109
Subdivision 16‑D—Additional rights and obligations of entity that makes a payment 111
16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes 111
Division 18—Recipient’s entitlements and obligations 112
Subdivision 18‑A—Crediting withheld amounts 112
Guide to Subdivision 18‑A 112
18‑1....................... What this Subdivision is about....................................... 112
General exception 113
18‑5....................... No credit for refunded amount........................................ 113
Entitlement to credits: income tax liability 114
18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 114
18‑15..................... Tax credit for recipient of withholding payments............ 114
18‑20..................... Tax credit where recipient is a partnership...................... 115
18‑25..................... Tax credit where recipient is a trust................................. 115
18‑27..................... Tax credit for alienated personal services payments........ 117
Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program 118
18‑30..................... Credit: dividend, interest or royalty................................. 118
18‑32..................... Credit: amount attributable to fund payment................... 118
18‑33..................... Credit: Seasonal Labour Mobility Program.................... 118
18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge 119
18‑40..................... Credit: liability under Part 4‑25....................................... 121
Entitlement to credit: departing Australia superannuation payment 122
18‑42..................... Credit—departing Australia superannuation payment..... 122
Entitlement to credit: mining payment 122
18‑45..................... Credit—mining payment................................................. 122
Entitlement to credit: Minerals resource rent tax 124
18‑49..................... Credit—Natural resource payments................................ 124
Entitlement to credit: Petroleum resource rent tax 124
18‑55..................... Credit—Natural resource payments................................ 124
Subdivision 18‑B—Refund of certain withheld amounts 124
18‑65..................... Refund of withheld amounts by the payer to the recipient 125
18‑70..................... Refund of withheld amounts by the Commissioner to the recipient 128
18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment 129
Subdivision 18‑C—Recipient’s obligations 129
18‑100................... Obligation to keep payment summary............................. 129
Subdivision 18‑D—Directors etc. of non‑complying companies 130
Object of Subdivision 131
18‑120................... Object of Subdivision..................................................... 131
PAYG withholding non‑compliance tax 131
18‑125................... Directors of non‑complying companies.......................... 131
18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances 132
18‑135................... Associates of directors of non‑complying companies..... 134
18‑140................... Notices............................................................................ 137
18‑145................... When PAYG withholding non‑compliance tax must be paid.. 139
18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax 139
18‑155................... Validity of decisions and evidence.................................. 139
18‑160................... Rights of indemnity and contribution.............................. 140
Credits for later compliance 141
18‑165................... Credits for later compliance—scope............................... 141
18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances 141
18‑175................... Credits for later compliance—Commissioner may give notice 143
18‑180................... Effect of earlier credits.................................................... 144
Other provisions 144
18‑185................... When Commissioner may give notice............................. 144
18‑190................... Review of decisions........................................................ 146
Division 20—Other matters 147
Subdivision 20‑B—Offences 147
20‑35..................... Offences......................................................................... 147
20‑40..................... Joining of charges........................................................... 148
20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company 149
Subdivision 20‑D—Review of decisions 149
20‑80..................... Reviewable decisions...................................................... 149
Division 21—Entitlements relating to insolvent ADIs and general insurers 151
Guide to Division 21 151
21‑1....................... What this Division is about............................................. 151
Subdivision 21‑A—Treatment of some payments by APRA 151
21‑5....................... APRA treated like ADI or general insurance company.. 151
Part 2‑10—Pay as you go (PAYG) instalments 153
Division 45—Instalment payments 153
Guide to Division 45 154
45‑1....................... What this Division is about............................................. 154
Subdivision 45‑A—Basic rules 155
45‑5....................... Object of this Part........................................................... 155
45‑10..................... Application of Part.......................................................... 156
45‑15..................... Liability for instalments.................................................. 157
45‑20..................... Information to be given to the Commissioner by certain payers 157
45‑25..................... Penalty for failure to notify Commissioner..................... 158
45‑30..................... Credit for instalments payable......................................... 158
Subdivision 45‑B—When instalments are due 159
45‑50..................... Liability to pay instalments............................................. 159
45‑60..................... Meaning of instalment quarter....................................... 160
45‑61..................... When quarterly instalments are due—payers of quarterly instalments 161
45‑65..................... Meaning of instalment month......................................... 162
45‑67..................... When monthly instalments are due—payers of monthly instalments 162
45‑70..................... When annual instalments are due.................................... 162
45‑72..................... Means of payment of instalment..................................... 163
45‑75..................... Instalments recoverable in same way as income tax........ 163
45‑80..................... General interest charge on late payment.......................... 163
45‑90..................... Commissioner may withdraw instalment rate................. 163
Subdivision 45‑C—Working out instalment amounts 164
45‑110................... How to work out amount of quarterly instalment on instalment income basis 164
45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax 165
45‑114................... How to work out amount of monthly instalment............ 165
45‑115................... How to work out amount of annual instalment............... 167
45‑120................... Meaning of instalment income........................................ 168
Subdivision 45‑D—Quarterly payers 171
45‑125................... Quarterly payer who pays instalments on the basis of instalment income 171
45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax 173
45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 175
45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 176
Subdivision 45‑DA—Monthly payers 177
45‑136................... Monthly payer................................................................ 177
45‑138................... Monthly payer requirement............................................. 178
Subdivision 45‑E—Annual payers 180
When you start and stop being an annual payer 180
45‑140................... Choosing to pay annual instalments................................ 180
45‑145................... Meaning of instalment group......................................... 181
45‑150................... Entity stops being annual payer if involved with GST registration or instalment group 182
45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly 183
45‑160................... Head company of a consolidated group stops being annual payer 184
Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income 184
45‑200................... Application..................................................................... 184
45‑205................... Choosing a varied instalment rate................................... 185
45‑210................... Notifying Commissioner of varied instalment rate.......... 185
45‑215................... Credit on using varied rate in certain cases..................... 186
Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low 187
45‑225................... Effect of Subdivision in relation to monthly payers........ 187
45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate 187
45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax........................................................................................ 189
45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment 196
45‑235................... Liability to GIC on shortfall in annual instalment........... 197
45‑240................... Commissioner may remit general interest charge............ 199
Subdivision 45‑H—Partnership income 199
45‑260................... Instalment income for a period in which you are in a partnership 199
Subdivision 45‑I—Trust income included in instalment income of beneficiary 200
45‑280................... Instalment income for a period in which you are a beneficiary of a trust 200
45‑285................... Instalment income includes distributions by certain resident unit trusts 202
45‑286................... Instalment income includes distributions by certain managed investment trusts 204
45‑287................... When trusts are disqualified due to concentrated ownership 205
45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled 206
45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income 207
Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax 207
45‑320................... Working out instalment rate............................................ 207
45‑325................... Working out your notional tax........................................ 208
45‑330................... Working out your adjusted taxable income.................... 210
45‑335................... Working out your adjusted withholding income............. 212
45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income 212
Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax 214
45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax 214
45‑360................... How Commissioner works out benchmark instalment rate 215
45‑365................... Working out your benchmark tax................................... 215
45‑370................... Working out your adjusted assessed taxable income for the variation year 216
45‑375................... Adjusted assessed tax on adjusted assessed taxable income 217
Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax 218
45‑400................... Working out amount of instalment—payers of 4 quarterly instalments 219
45‑402................... Working out amount of instalment—payers of 2 quarterly instalments 220
45‑405................... Working out your GDP‑adjusted notional tax................ 222
Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax 224
45‑410................... Working out amount of instalment—payers of 4 quarterly instalments 224
45‑412................... Working out amount of instalment—payers of 2 quarterly instalments 226
45‑415................... Estimating your benchmark tax....................................... 227
45‑420................... Credit in certain cases where amount of instalment is nil 228
Subdivision 45‑N—How this Part applies to the trustee of a trust 228
Trustees to whom this Part applies 229
45‑450................... Trustees to whom a single instalment rate is given......... 229
45‑455................... Trustees to whom several instalment rates are given....... 229
45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 231
45‑465................... Meaning of instalment income........................................ 231
45‑468................... Multi‑rate trustee may pay quarterly instalments............. 231
How Commissioner works out instalment rate and notional tax for a multi‑rate trustee 231
45‑470................... Working out instalment rate............................................ 231
45‑473................... Commissioner must notify you of notional tax............... 232
45‑475................... Working out your notional tax........................................ 232
45‑480................... Working out your adjusted taxable income.................... 233
45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share 234
45‑485................... Working out your adjusted withholding income............. 234
How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee 235
45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax 235
45‑530................... How Commissioner works out benchmark instalment rate 235
45‑535................... Working out your benchmark tax................................... 236
Subdivision 45‑P—Anti‑avoidance rules 236
45‑595................... Object of this Subdivision.............................................. 237
45‑597................... Effect of Subdivision in relation to instalment months.... 237
45‑600................... General interest charge on tax benefit relating to instalments 237
45‑605................... When do you get a tax benefit from a scheme?............... 239
45‑610................... What is your tax position for an income year?................ 239
45‑615................... What is your hypothetical tax position for an income year? 242
45‑620................... Amount on which GIC is payable, and period for which it is payable 242
45‑625................... Credit if you also got a tax detriment from the scheme... 243
45‑630................... When do you get a tax detriment from a scheme?........... 244
45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides 245
45‑640................... Commissioner may remit general interest charge in special cases 246
Subdivision 45‑Q—General rules for consolidated groups 247
Guide to Subdivision 45‑Q 247
45‑700................... What this Subdivision is about....................................... 247
Application of Subdivision 248
45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers 248
45‑705................... Application of Subdivision to head company................. 249
Usual operation of this Part for consolidated group members 253
45‑710................... Single entity rule............................................................. 253
45‑715................... When instalments are due—modification of section 45‑61 253
45‑720................... Head company cannot be an annual payer—modification of section 45‑140 253
Membership changes 254
45‑740................... Change of head company................................................ 254
45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group) 256
45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group) 257
45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax 258
Subdivision 45‑R—Special rules for consolidated groups 260
Guide to Subdivision 45‑R 260
45‑850................... What this Subdivision is about....................................... 260
Operative provisions 261
45‑855................... Section 701‑1 disregarded for certain purposes.............. 261
45‑860................... Member having a different instalment period.................. 261
45‑865................... Credit rule....................................................................... 263
45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment 264
45‑875................... Other rules about the general interest charge................... 267
45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group 267
45‑885................... Early application of Subdivision 45‑Q to the head company of a new group 269
Subdivision 45‑S—MEC groups 271
Guide to Subdivision 45‑S 271
45‑900................... What this Subdivision is about....................................... 271
Preliminary 272
45‑905................... Objects of Subdivision................................................... 272
General modification rules 272
45‑910................... Extended operation of Part to cover MEC groups.......... 272
Extended operation of Subdivision 45‑Q 273
45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups 273
45‑915................... Application of Subdivision 45‑Q to provisional head company 273
45‑917................... Assumption for applying section 45‑710 (single entity rule) 277
45‑920................... Change of provisional head company............................. 277
45‑922................... Life insurance company.................................................. 280
Extended operation of Subdivision 45‑R 280
45‑925................... Additional modifications of sections 45‑855 and 45‑860 280
45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision 280
45‑935................... Additional modifications of section 45‑885.................... 281
Part 2‑30—Collecting Medicare levy with income tax 282
Division 90—Medicare levy and Medicare levy surcharge 282
Subdivision 90‑A—Treatment like income tax 282
90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 282
Part 2‑35—Excess concessional contributions 283
Division 95—Excess concessional contributions charge 283
Guide to Division 95 283
95‑1....................... What this Division is about............................................. 283
Subdivision 95‑A—Object of Division 283
95‑5....................... Object of Division.......................................................... 283
Subdivision 95‑B—Excess concessional contributions charge 284
95‑10..................... Liability to excess concessional contributions charge..... 284
95‑15..................... Amount of excess concessional contributions charge..... 285
95‑20..................... When excess concessional contributions charge is due and payable 285
95‑25..................... General interest charge.................................................... 286
Division 96—Releasing money from superannuation 287
Subdivision 96‑A—Releasing money from superannuation 287
Guide to Subdivision 96‑A 287
96‑1....................... What this Subdivision is about....................................... 287
Requesting a release authority 288
96‑5....................... Electing to release money from superannuation.............. 288
Issuing a release authority to superannuation provider 290
96‑10..................... Issuing a release authority to a superannuation provider. 290
96‑15..................... Varying and revoking a release authority........................ 290
Complying with a release authority 290
96‑20..................... Obligations of superannuation providers........................ 290
96‑25..................... Voluntary compliance with a release authority relating to voluntary release interests 291
96‑30..................... Meaning of maximum available release amount............ 291
96‑35..................... Notifying Commissioner................................................ 292
96‑40..................... Notifying individual of unsuccessful release attempt...... 292
96‑45..................... Compensation for acquisition of property....................... 293
Consequences of releasing amounts 293
96‑50..................... Entitlement to credits....................................................... 293
96‑55..................... Interest for late payments of money received by the Commissioner in accordance with release authority........................................................................................ 293
96‑60..................... Income tax treatment of amounts released—proportioning rule does not apply 294
Division 97—Excess concessional contributions determinations 295
Subdivision 97‑A—Excess concessional contributions determinations 295
Guide to Subdivision 97‑A 295
97‑1....................... What this Subdivision is about....................................... 295
Operative provisions 295
97‑5....................... Determination of excess concessional contributions and charge 295
97‑10..................... Review............................................................................ 296
Chapter 3—Collection, recovery and administration of other taxes 297
Part 3‑10—Indirect taxes 297
Division 105—General rules for indirect taxes 297
Guide to Division 105 297
105‑1..................... What this Division is about............................................. 297
Subdivision 105‑A—Assessments 298
105‑3..................... Application of Subdivision............................................. 298
105‑5..................... Commissioner may make assessment of indirect tax...... 298
105‑10................... Request for assessment................................................... 299
105‑15................... Indirect tax liabilities do not depend on assessment........ 299
105‑20................... Commissioner must give notice of the assessment......... 300
105‑25................... Amendment of assessment............................................. 300
105‑30................... Later assessment prevails in case of inconsistency......... 300
Subdivision 105‑B—Review of indirect tax decisions 300
105‑40................... Reviewable indirect tax decisions................................... 301
Subdivision 105‑C—Limits on credits, refunds and recovering amounts 301
105‑50................... Time limit on recovery by the Commissioner................. 301
105‑55................... Time limit on refunds etc. from the Commissioner......... 302
105‑65................... Restriction on GST refunds............................................ 305
Subdivision 105‑D—General interest charge and penalties 306
105‑80................... General interest charge.................................................... 306
105‑85................... Amending Acts cannot impose penalties or general interest charge earlier than 28 days after Royal Assent........................................................................................ 307
Subdivision 105‑F—Indirect tax refund schemes 307
105‑120................. Refund scheme—defence related international obligations 307
105‑125................. Refund scheme—international obligations...................... 308
Subdivision 105‑G—Other administrative provisions 309
105‑140................. Address for service......................................................... 309
105‑145................. Commissioner must give things in writing..................... 310
Division 110—Goods and services tax 311
Guide to Division 110 311
110‑1..................... What this Division is about............................................. 311
Subdivision 110‑F—Review of GST decisions 311
110‑50................... Reviewable GST decisions............................................. 311
Division 111—Wine tax and luxury car tax 315
Guide to Division 111 315
111‑1..................... What this Division is about............................................. 315
Subdivision 111‑C—Review of wine tax decisions 315
111‑50................... Reviewable wine tax decisions....................................... 315
Subdivision 111‑D—Effect on contracts from amendments to laws 316
111‑60................... Alteration of contracts if cost of complying with agreement is affected by later alteration to wine tax or luxury car tax laws..................................................................... 316
Division 112—Fuel tax 318
Guide to Division 112 318
112‑1..................... What this Division is about............................................. 318
Subdivision 112‑E—Review of fuel tax decisions 318
112‑50................... Reviewable fuel tax decisions......................................... 318
Part 3‑15—Minerals Resource Rent Tax 320
Division 115—Instalments 320
Guide to Division 115 320
115‑1..................... What this Division is about............................................. 320
Subdivision 115‑A—Preliminary 321
115‑5..................... Objects of this Division.................................................. 321
Subdivision 115‑B—Liability for instalments 321
115‑10................... Liability for instalments.................................................. 321
115‑15................... Information to be given to the Commissioner................. 322
115‑20................... Credit for instalments payable......................................... 323
115‑25................... When instalments are due............................................... 323
115‑30................... General interest charge on late payment.......................... 323
Subdivision 115‑C—Working out instalment amounts 323
115‑35................... How to work out the amount of an instalment................ 324
115‑40................... Meaning of instalment income........................................ 324
115‑45................... Meaning of applicable instalment rate........................... 324
Subdivision 115‑D—Instalment rate chosen by you 326
Choosing an instalment rate 326
115‑50................... Choosing a varied instalment rate................................... 326
115‑55................... Notifying Commissioner of varied instalment rate.......... 327
Variation credits 327
115‑60................... Credit on using varied rate in certain cases..................... 327
General interest charge payable in certain cases if instalments are too low 329
115‑65................... Liability to GIC on shortfall in instalments worked out on the basis of varied rate 329
115‑70................... Working out your benchmark instalment rate................ 330
Subdivision 115‑E—Instalment rate given to you by Commissioner 331
115‑75................... Commissioner instalment rate for MRRT....................... 331
115‑80................... Commissioner may take changes, and proposed changes, to the law into account 332
Subdivision 115‑F—Default instalment rate 333
115‑85................... Default instalment rate.................................................... 333
Subdivision 115‑G—Special rules for project interests that are transferred or split 334
115‑90................... Effect of transfer or split of project interest on instalment income 334
115‑95................... Additional instalment income for new miner or new explorer 336
115‑100................. Credit for original miner or original explorer for instalment quarters before transfer or split 336
115‑105................. Adjusted instalment income for original miners or explorers 338
Subdivision 115‑H—Special rules for transitional accounting periods 338
115‑110................. Instalment quarters in transitional accounting periods..... 339
Division 117—MRRT returns and starting base returns 340
Guide to Division 117 340
117‑1..................... What this Division is about............................................. 340
Operative provisions 340
117‑5..................... Who must give MRRT returns....................................... 340
117‑10................... The form and contents of MRRT returns........................ 341
117‑15................... Additional MRRT returns............................................... 342
117‑20................... Starting base returns....................................................... 342
117‑25................... Electronic lodgement of MRRT returns and starting base returns 343
117‑30................... MRRT returns and starting base returns treated as being duly made 343
Division 119—Making choices 344
Guide to Division 119 344
119‑1..................... What this Division is about............................................. 344
Operative provisions 344
119‑5..................... Making choices............................................................... 344
119‑10................... Choices are irrevocable................................................... 345
119‑15................... Division subject to more specific rules........................... 345
Division 121—Reporting 346
Guide to Division 121 346
121‑1..................... What this Division is about............................................. 346
Operative provisions 346
121‑5..................... Object of this Division.................................................... 346
121‑10................... Information notice for transfers and splits of mining and pre‑mining project interests 346
121‑12................... Notice of rehabilitation expenditure................................ 348
121‑15................... Substantiation requirement.............................................. 348
Division 123—Record keeping 350
Guide to Division 123 350
123‑1..................... What this Division is about............................................. 350
Operative provisions 350
123‑5..................... What records you must keep........................................... 350
123‑10................... Retaining records............................................................ 351
123‑15................... Offence for failing to keep or retain records................... 351
Division 125—Miscellaneous 353
125‑1..................... Address for service......................................................... 353
Part 3‑20—Sustaining the superannuation contribution concession 354
Division 133—Deferred payment 354
Guide to Division 133 354
133‑1..................... What this Division is about............................................. 354
Subdivision 133‑A—Deferral determination 354
Guide to Subdivision 133‑A 354
133‑5..................... What this Subdivision is about....................................... 354
Operative provisions 355
133‑10................... Determination of tax that is deferred to a debt account... 355
133‑15................... Defined benefit tax.......................................................... 355
133‑20................... How to attribute the defined benefit tax to defined benefit interests 356
133‑25................... Determination reducing tax deferred to a debt account.... 357
133‑30................... General provisions applying to determinations under this Subdivision 357
Subdivision 133‑B—Debt account 358
Guide to Subdivision 133‑B 358
133‑55................... What this Subdivision is about....................................... 358
Operative provisions 358
133‑60................... Debt account to be kept for deferred tax......................... 358
133‑65................... Interest on debt account balance...................................... 359
133‑70................... Voluntary payments........................................................ 360
133‑75................... Commissioner must notify superannuation provider of debt account 360
Subdivision 133‑C—Compulsory payment 360
Guide to Subdivision 133‑C 360
133‑100................. What this Subdivision is about....................................... 360
Debt account discharge liability 361
133‑105................. Liability to pay debt account discharge liability............... 361
133‑110................. When debt account discharge liability must be paid........ 361
133‑115................. General interest charge.................................................... 362
133‑120................. Meaning of debt account discharge liability................... 362
133‑125................. Notice of debt account discharge liability........................ 363
End benefit 364
133‑130................. Meaning of end benefit................................................... 364
133‑135................. End benefit notice—individual........................................ 364
133‑140................. End benefit notice—superannuation provider................. 364
133‑145................. End benefit notice—material changes or omissions........ 365
Division 135—Releasing money from superannuation 366
Guide to Division 135 366
135‑1..................... What this Division is about............................................. 366
Subdivision 135‑A—When the Commissioner must issue a release authority 366
Guide to Subdivision 135‑A 366
135‑5..................... What this Subdivision is about....................................... 366
Operative provisions 367
135‑10................... Release authorities.......................................................... 367
Subdivision 135‑B—When a release authority can be given to a superannuation provider 368
Guide to Subdivision 135‑B 368
135‑35................... What this Subdivision is about....................................... 368
Operative provisions 369
135‑40................... When you may give release authority to superannuation provider 369
135‑45................... When Commissioner may give release authority to superannuation provider 369
Subdivision 135‑C—Release of superannuation money under a release authority 370
Guide to Subdivision 135‑C 370
135‑70................... What this Subdivision is about....................................... 370
Operative provisions 371
135‑75................... Requirement for superannuation provider to release money 371
135‑80................... Compensation for acquisition of property....................... 372
135‑85................... Release amount............................................................... 372
135‑90................... How the Commissioner applies amounts received under a release authority 373
135‑95................... Defined benefit interests—releasing amounts to pay debt account discharge liability 373
135‑100................. Income tax treatment of amounts released—proportioning rule does not apply 373
Chapter 4—Generic assessment, collection and recovery rules 375
Part 4‑1—Returns and assessments 375
Division 155—Assessments 375
Guide to Division 155 375
155‑1..................... What this Division is about............................................. 375
Subdivision 155‑A—Making assessments 375
155‑5..................... Commissioner may make assessment............................. 376
155‑10................... Commissioner must give notice of assessment............... 376
155‑15................... Self‑assessment.............................................................. 376
155‑20................... Assessment of indirect tax on importations and customs dealing 378
155‑25................... Special assessment.......................................................... 379
155‑30................... Delays in making assessments........................................ 379
Subdivision 155‑B—Amending assessments 379
When Commissioner may amend assessments 380
155‑35................... Amendment during period of review.............................. 380
155‑40................... Amendment during period of review—certain applications taken to be notices 381
155‑45................... Amendment on application............................................. 382
155‑50................... Amendment to give effect to private ruling..................... 382
155‑55................... Amendment to give effect to certain anti‑avoidance declarations or determinations 382
155‑57................... Amendment to give effect to MRRT anti‑profit shifting rules 383
155‑60................... Amendment because of review, objection or fraud......... 383
Special rules about amending amended assessments 383
155‑65................... Amending amended assessments.................................... 383
155‑70................... Refreshed period of review............................................. 384
General rules 384
155‑75................... Refunds of amounts overpaid......................................... 384
155‑80................... Amended assessments are assessments.......................... 385
Subdivision 155‑C—Validity and review of assessments 385
155‑85................... Validity of assessment.................................................... 385
155‑90................... Review of assessments................................................... 385
Subdivision 155‑D—Miscellaneous 386
155‑95................... Entities............................................................................ 386
Part 4‑15—Collection and recovery of tax‑related liabilities and other amounts 387
Division 250—Introduction 387
Subdivision 250‑A—Guide to Part 4‑15 387
250‑1..................... What this Part is about.................................................... 387
250‑5..................... Some important concepts about tax‑related liabilities...... 387
250‑10................... Summary of tax‑related liabilities.................................... 388
Subdivision 250‑B—Object of this Part 395
250‑25................... Object............................................................................. 395
Division 255—General rules about collection and recovery 396
Subdivision 255‑A—Tax‑related liabilities 396
255‑1..................... Meaning of tax‑related liability....................................... 396
255‑5..................... Recovering a tax‑related liability that is due and payable 396
Subdivision 255‑B—Commissioner’s power to vary payment time 397
255‑10................... To defer the payment time............................................... 397
255‑15................... To permit payments by instalments................................. 398
255‑20................... To bring forward the payment time in certain cases........ 398
Subdivision 255‑C—Recovery proceedings 399
Guide to Subdivision 255‑C 399
255‑35................... What this Subdivision is about....................................... 399
Operative provisions 399
255‑40................... Service of documents if person absent from Australia or cannot be found 399
255‑45................... Evidentiary certificate...................................................... 400
255‑50................... Certain statements or averments...................................... 401
255‑55................... Evidence by affidavit...................................................... 401
Subdivision 255‑D—Security deposits 402
255‑100................. Commissioner may require security deposit................... 402
255‑105................. Notice of requirement to give security............................ 403
255‑110................. Offence........................................................................... 403
Division 260—Special rules about collection and recovery 405
Guide to Division 260 405
260‑1..................... What this Division is about............................................. 405
Subdivision 260‑A—From third party 405
260‑5..................... Commissioner may collect amounts from third party...... 405
260‑10................... Notice to Commonwealth, State or Territory.................. 407
260‑15................... Indemnity........................................................................ 407
260‑20................... Offence........................................................................... 408
Subdivision 260‑B—From liquidator 408
260‑40................... Subdivision does not apply to superannuation guarantee charge 408
260‑45................... Liquidator’s obligation.................................................... 408
260‑50................... Offence........................................................................... 410
260‑55................... Joint liability of 2 or more liquidators............................. 410
260‑60................... Liquidator’s other obligation or liability.......................... 410
Subdivision 260‑C—From receiver 410
260‑75................... Receiver’s obligation...................................................... 410
260‑80................... Offence........................................................................... 412
260‑85................... Joint liability of 2 or more receivers................................ 412
260‑90................... Receiver’s other obligation or liability............................ 412
Subdivision 260‑D—From agent winding up business for foreign resident principal 412
260‑105................. Obligation of agent winding up business for foreign resident principal 412
260‑110................. Offence........................................................................... 413
260‑115................. Joint liability of 2 or more agents.................................... 414
260‑120................. Agent’s other obligation or liability................................ 414
Subdivision 260‑E—From deceased person’s estate 414
260‑140................. Administered estate......................................................... 414
260‑145................. Unadministered estate..................................................... 415
260‑150................. Commissioner may authorise amount to be recovered.... 416
Division 263—Mutual assistance in collection of foreign tax debts 417
Subdivision 263‑A—Foreign revenue claims 417
Guide to Subdivision 263‑A 417
263‑5..................... What this Subdivision is about....................................... 417
Operative provisions 418
263‑10................... Meaning of foreign revenue claim.................................. 418
263‑15................... Requirements for foreign revenue claims........................ 418
263‑20................... Foreign Revenue Claims Register................................... 418
263‑25................... Registering claims........................................................... 419
263‑30................... When amount is due and payable.................................... 419
263‑35................... Amending the Register etc.............................................. 420
263‑40................... Payment to competent authority...................................... 421
Division 265—Other matters 422
Subdivision 265‑A—Right of person to seek recovery or contribution 422
Guide to Subdivision 265‑A 422
265‑35................... What this Subdivision is about....................................... 422
Operative provisions 422
265‑40................... Right of recovery if another person is liable................... 422
265‑45................... Right of contribution if persons are jointly liable............ 423
Subdivision 265‑B—Application of laws 423
265‑65................... Non‑application of certain taxation laws......................... 423
Division 268—Estimates and recovery of PAYG withholding liabilities and superannuation guarantee charge 424
Guide to Division 268 424
268‑1..................... What this Division is about............................................. 424
Subdivision 268‑A—Object 425
268‑5..................... Object of Division.......................................................... 425
Subdivision 268‑B—Making estimates 425
268‑10................... Commissioner may make estimate.................................. 425
268‑15................... Notice of estimate........................................................... 426
Subdivision 268‑C—Liability to pay estimates 427
268‑20................... Nature of liability to pay estimate.................................... 427
268‑25................... Accuracy of estimate irrelevant to liability to pay............ 428
268‑30................... Estimate provable in bankruptcy or winding up.............. 429
Subdivision 268‑D—Reducing and revoking estimates 429
268‑35................... How estimate may be reduced or revoked—Commissioner’s powers 430
268‑40................... How estimate may be reduced or revoked—statutory declaration or affidavit 431
268‑45................... How estimate may be reduced or revoked—rejection of proof of debt 433
268‑50................... How estimate may be reduced—amount paid or applied 434
268‑55................... When reduction or revocation takes effect...................... 435
268‑60................... Consequences of reduction or revocation—refund......... 435
268‑65................... Consequences of reduction or revocation—statutory demand changed or set aside 436
268‑70................... Consequences of reduction or revocation—underlying liability 436
Subdivision 268‑E—Late payment of estimates 437
268‑75................... Liability to pay the general interest charge...................... 437
268‑80................... Effect of paying the general interest charge..................... 437
Subdivision 268‑F—Miscellaneous 438
268‑85................... Effect of judgment on liability on which it is based........ 438
268‑90................... Requirements for statutory declaration or affidavit......... 439
268‑95................... Liquidators, receivers and trustees in bankruptcy........... 442
268‑100................. Division not to limit or exclude Corporations or Bankruptcy Act 443
Division 269—Penalties for directors of non‑complying companies 444
Guide to Division 269 444
269‑1..................... What this Division is about............................................. 444
Subdivision 269‑A—Object and scope 444
269‑5..................... Object of Division.......................................................... 445
269‑10................... Scope of Division........................................................... 445
Subdivision 269‑B—Obligations and penalties 446
269‑15................... Directors’ obligations..................................................... 447
269‑20................... Penalty............................................................................ 447
269‑25................... Notice............................................................................. 448
269‑30................... Effect on penalty of directors’ obligation ending before end of notice period 449
269‑35................... Defences......................................................................... 452
Subdivision 269‑C—Discharging liabilities 454
269‑40................... Effect of director paying penalty or company discharging liability 454
269‑45................... Directors’ rights of indemnity and contribution.............. 455
Subdivision 269‑D—Miscellaneous 455
269‑50................... How notice may be given............................................... 455
269‑52................... Copies of notices............................................................ 455
269‑55................... Division not to limit or exclude Corporations Act.......... 456
Part 4‑25—Charges and penalties 457
Division 280—Shortfall interest charge 457
Guide to Division 280 457
280‑1..................... Guide to Division 280.................................................... 457
Subdivision 280‑A—Object of Division 457
280‑50................... Object of Division.......................................................... 457
Subdivision 280‑B—Shortfall interest charge 458
280‑100................. Liability to shortfall interest charge—income tax............ 458
280‑101................. Liability to shortfall interest charge—minerals resource rent tax 459
280‑102................. Liability to shortfall interest charge—petroleum resource rent tax 460
280‑102A.............. Liability to shortfall interest charge—excess non‑concessional contributions tax 460
280‑102B.............. Liability to shortfall interest charge—Division 293 tax... 461
280‑103................. Liability to shortfall interest charge—general.................. 462
280‑105................. Amount of shortfall interest charge................................. 462
280‑110................. Notification by Commissioner........................................ 462
Subdivision 280‑C—Remitting shortfall interest charge 463
280‑160................. Remitting shortfall interest charge................................... 463
280‑165................. Commissioner must give reasons for not remitting in certain cases 463
280‑170................. Objecting against remission decision.............................. 464
Division 284—Administrative penalties for statements, unarguable positions and schemes 465
Guide to Division 284 465
284‑5..................... What this Division is about............................................. 465
Subdivision 284‑A—General provisions 465
284‑10................... Object of Division.......................................................... 466
284‑15................... When a matter is reasonably arguable........................... 466
284‑20................... Which statements this Division applies to....................... 466
284‑25................... Statements by agents....................................................... 467
284‑30................... Application of Division to trusts..................................... 467
284‑35................... Application of Division to partnerships.......................... 467
Subdivision 284‑B—Penalties relating to statements 468
Guide to Subdivision 284‑B 468
284‑70................... What this Subdivision is about....................................... 468
Operative provisions 469
284‑75................... Liability to penalty.......................................................... 469
284‑80................... Shortfall amounts........................................................... 471
284‑85................... Amount of penalty.......................................................... 473
284‑90................... Base penalty amount....................................................... 473
284‑95................... Joint and several liability of directors of corporate trustee that makes a false or misleading statement 476
Subdivision 284‑C—Penalties relating to schemes 476
Guide to Subdivision 284‑C 476
284‑140................. What this Subdivision is about....................................... 476
Operative provisions 477
284‑145................. Liability to penalty.......................................................... 477
284‑150................. Scheme benefits and scheme shortfall amounts.............. 478
284‑155................. Amount of penalty.......................................................... 480
284‑160................. Base penalty amount: schemes....................................... 480
284‑165................. Exception—threshold for penalty arising from cross‑border transfer pricing 481
Subdivision 284‑D—Provisions common to Subdivisions 284‑B and 284‑C 482
284‑220................. Increase in base penalty amount...................................... 482
284‑224................. Reduction of base penalty amount if law was applied in an accepted way 484
284‑225................. Reduction of base penalty amount if you voluntarily tell the Commissioner 484
Subdivision 284‑E—Special rules about unarguable positions for cross‑border transfer pricing 485
284‑250................. Undocumented transfer pricing treatment not reasonably arguable 486
284‑255................. Documentation requirements.......................................... 486
Division 286—Penalties for failing to lodge documents on time 488
Subdivision 286‑A—Guide to Division 286 488
286‑1..................... What this Division is about............................................. 488
Subdivision 286‑B—Object of Division 488
286‑25................... Object of Division.......................................................... 488
Subdivision 286‑C—Penalties for failing to lodge documents on time 488
286‑75................... Liability to penalty.......................................................... 489
286‑80................... Amount of penalty.......................................................... 491
Division 288—Miscellaneous administrative penalties 493
288‑10................... Penalty for non‑electronic notification............................ 493
288‑20................... Penalty for non‑electronic payment................................. 494
288‑25................... Penalty for failure to keep or retain records.................... 494
288‑30................... Penalty for failure to retain or produce declarations........ 494
288‑35................... Penalty for preventing access etc.................................... 495
288‑40................... Penalty for failing to register or cancel registration......... 495
288‑45................... Penalty for failing to issue tax invoice etc....................... 495
288‑50................... Penalty for both principal and agent issuing certain documents 496
288‑70................... Administrative penalties for life insurance companies.... 496
288‑75................... Administrative penalty for a copyright or resale royalty collecting society 498
288‑80................... Administrative penalty for over declaring conduit foreign income 498
288‑90................... Failing to give release authority for excess non‑concessional contributions tax 499
288‑95................... Failing to comply etc. with release authority................... 500
288‑100................. Excess money paid under release authority..................... 500
288‑105................. Superannuation provider to calculate crystallised pre‑July 83 amount of superannuation interest by 30 June 2008................................................................................ 501
288‑110................. Contravention of superannuation data and payment regulation or standard 501
Division 290—Promotion and implementation of schemes 503
Subdivision 290‑A—Preliminary 503
290‑5..................... Objects of this Division.................................................. 503
290‑10................... Extra‑territorial application.............................................. 503
Subdivision 290‑B—Civil penalties 503
290‑50................... Civil penalties................................................................. 504
290‑55................... Exceptions...................................................................... 506
290‑60................... Meaning of promoter..................................................... 507
290‑65................... Meaning of tax exploitation scheme................................ 508
Subdivision 290‑C—Injunctions 509
290‑120................. Conduct to which this Subdivision applies..................... 509
290‑125................. Injunctions...................................................................... 509
290‑130................. Interim injunctions.......................................................... 509
290‑135................. Delay in making ruling................................................... 510
290‑140................. Discharge etc. of injunctions........................................... 510
290‑145................. Certain limits on granting injunctions not to apply.......... 510
290‑150................. Other powers of the Federal Court unaffected................ 511
Subdivision 290‑D—Voluntary undertakings 511
290‑200................. Voluntary undertakings.................................................. 511
Division 298—Machinery provisions for penalties 513
Subdivision 298‑A—Administrative penalties 513
298‑5..................... Scope of Subdivision...................................................... 513
298‑10................... Notification of liability.................................................... 513
298‑15................... Due date for penalty........................................................ 513
298‑20................... Remission of penalty...................................................... 514
298‑25................... General interest charge on unpaid penalty....................... 514
298‑30................... Assessment of penalties under Division 284.................. 515
Subdivision 298‑B—Civil penalties 515
298‑80................... Application of Subdivision............................................. 515
298‑85................... Civil evidence and procedure rules for civil penalty orders 516
298‑90................... Civil proceedings after criminal proceedings.................. 516
298‑95................... Criminal proceedings during civil proceedings............... 516
298‑100................. Criminal proceedings after civil proceedings.................. 516
298‑105................. Evidence given in proceedings for penalty not admissible in criminal proceedings 517
298‑110................. Civil double jeopardy...................................................... 517
Part 4‑50—Release from particular liabilities 518
Division 340—Commissioner’s power in cases of hardship 518
Guide to Division 340 518
340‑1..................... What this Division is about............................................. 518
Operative provisions 518
340‑5..................... Release from particular liabilities in cases of serious hardship 518
340‑10................... Liabilities to which this section applies........................... 519
340‑15................... Commissioner may take action to give effect to a release decision 521
340‑20................... Extinguishing your liability to pay a fringe benefits tax instalment if you are released 521
340‑25................... Extinguishing your liability to pay a PAYG instalment if you are released 522
Division 342—Commissioner’s power relating to proceeds of crime proceedings 523
Guide to Division 342 523
342‑1..................... What this Division is about............................................. 523
Subdivision 342‑A—Power to waive right to payment of tax‑related liabilities 523
342‑5..................... Object of this Subdivision.............................................. 523
342‑10................... Power to waive right to payment of tax‑related liability.. 524
Part 4‑90—Evidence 525
Division 350—Evidence 525
Guide to Division 350 525
350‑1..................... What this Division is about............................................. 525
Subdivision 350‑A—Evidence 525
350‑5..................... Application of Subdivision............................................. 525
350‑10................... Evidence......................................................................... 525
350‑15................... Judicial notice of signature.............................................. 527
Chapter 5—Administration 529
Part 5‑1—The Australian Taxation Office 529
Division 352—Accountability of the Commissioner 529
Guide to Division 352 529
352‑1..................... What this Division is about............................................. 529
Subdivision 352‑A—Accountability of the Commissioner in respect of indirect tax laws 529
352‑5..................... Commissioner must prepare annual report on indirect tax laws 529
Subdivision 352‑B—Accountability of the Commissioner in respect of MRRT law 530
352‑10................... Commissioner must prepare annual report on MRRT law 530
Division 353—Powers to obtain information and evidence 531
353‑10................... Commissioner’s power................................................... 531
353‑15................... Access to premises for the purposes of the indirect tax laws, the MRRT law and the Division 293 tax law........................................................................................ 532
353‑17................... Offshore information notices.......................................... 533
353‑20................... Checking status of specifically listed deductible gift recipients 533
Division 355—Confidentiality of taxpayer information 535
Guide to Division 355 535
355‑1..................... What this Division is about............................................. 535
Subdivision 355‑A—Objects and application of Division 535
355‑10................... Objects of Division......................................................... 536
355‑15................... Application of Division.................................................. 536
Subdivision 355‑B—Disclosure of protected information by taxation officers 537
Guide to Subdivision 355‑B 537
355‑20................... What this Subdivision is about....................................... 537
Operative provisions 537
355‑25................... Offence—disclosure of protected information by taxation officers 537
355‑30................... Meaning of protected information and taxation officer... 538
355‑35................... Consent is not a defence................................................. 539
355‑40................... Generality of Subdivision not limited............................. 539
355‑45................... Exception—disclosure of publicly available information 539
355‑47................... Exception—disclosure of periodic aggregate tax information 540
355‑50................... Exception—disclosure in performing duties................... 540
355‑55................... Exception—disclosure to Ministers................................ 542
355‑60................... Limits on disclosure to Ministers.................................... 543
355‑65................... Exception—disclosure for other government purposes.. 544
355‑70................... Exception—disclosure for law enforcement and related purposes 556
355‑75................... Limits on disclosure to courts and tribunals.................... 561
Subdivision 355‑C—On‑disclosure of protected information by other people 562
Guide to Subdivision 355‑C 562
355‑150................. What this Subdivision is about....................................... 562
Operative provisions 562
355‑155................. Offence—on‑disclosure of protected information by other people 562
355‑160................. Consent is not a defence................................................. 563
355‑165................. Generality of Subdivision not limited............................. 563
355‑170................. Exception—on‑disclosure of publicly available information 563
355‑172................. Exception—disclosure of periodic aggregate tax information 564
355‑175................. Exception—on‑disclosure for original purpose.............. 564
355‑180................. Exception—on‑disclosure to Ministers in relation to statutory powers or functions 565
355‑185................. Exception—on‑disclosure in relation to IGIS................. 565
355‑190................. Exception—on‑disclosure in relation to ASIO............... 566
355‑195................. Exception—on‑disclosure by Royal Commissions......... 567
355‑200................. Exception—records made in compliance with Australian laws 567
355‑205................. Limits on on‑disclosure to courts or tribunals................. 568
355‑210................. Limits on on‑disclosure to Ministers.............................. 568
Subdivision 355‑D—Disclosure of protected information that has been unlawfully acquired 569
Guide to Subdivision 355‑D 569
355‑260................. What this Subdivision is about....................................... 569
Operative provisions 569
355‑265................. Offence—disclosure of protected information acquired in breach of a taxation law 569
355‑270................. Exception—disclosure of publicly available information 570
355‑275................. Exception—disclosure in relation to a taxation law......... 570
355‑280................. Limits on disclosure to courts and tribunals.................... 570
Subdivision 355‑E—Other matters 571
Guide to Subdivision 355‑E 571
355‑320................. What this Subdivision is about....................................... 571
Operative provisions 571
355‑325................. Oath or affirmation to protect information...................... 571
355‑330................. Injunctions to prevent contravention of non‑disclosure provisions 572
355‑335................. Procedures for disclosing protected information............. 573
Division 356—General administration of tax laws 575
Guide to Division 356 575
356‑1..................... What this Division is about............................................. 575
Subdivision 356‑A—Indirect tax laws 575
356‑5..................... Commissioner has general administration of indirect tax laws 575
Part 5‑5—Rulings 576
Division 357—Object and common rules 576
Guide to Division 357 576
357‑1..................... What this Division is about............................................. 576
Subdivision 357‑A—Object of this Part 576
357‑5..................... Object of this Part........................................................... 576
Subdivision 357‑B—Common rules for rulings 577
Rules for all rulings 578
357‑50................... Scope of Division........................................................... 578
357‑55................... The provisions that are relevant for rulings..................... 578
357‑60................... When rulings are binding on the Commissioner............. 579
357‑65................... Stopping relying on a ruling........................................... 581
357‑70................... Commissioner may apply the law if more favourable than the ruling 582
357‑75................... Inconsistent rulings......................................................... 582
357‑80................... Contracts for schemes..................................................... 584
357‑85................... Effect on ruling if relevant provision re‑enacted............. 584
357‑90................... Validity of ruling not affected by formal defect.............. 584
Common rules for public and private rulings 584
357‑95................... Electronic communications............................................. 584
357‑100................. Evidence......................................................................... 584
Common rules for private and oral rulings 585
357‑105................. Further information must be sought................................ 585
357‑110................. Assumptions in making private or oral ruling................. 585
357‑115................. Additional information provided by applicant................. 586
357‑120................. Commissioner may take into account information from third parties 586
357‑125................. Applications and objections not to affect obligations and powers 586
Division 358—Public rulings 587
Guide to Division 358 587
358‑1..................... What this Division is about............................................. 587
Making public rulings 587
358‑5..................... What is a public ruling?.................................................. 587
358‑10................... Application of public rulings.......................................... 588
358‑15................... When a public ruling ceases to apply.............................. 588
Withdrawing public rulings 588
358‑20................... Withdrawing public rulings............................................ 588
Division 359—Private rulings 590
Guide to Division 359 590
359‑1..................... What this Division is about............................................. 590
Private rulings 591
359‑5..................... Private rulings................................................................. 591
359‑10................... Applying for a private ruling.......................................... 591
359‑15................... Private rulings to be given to applicants.......................... 591
359‑20................... Private rulings must contain certain details..................... 591
359‑25................... Time of application of private rulings............................. 592
359‑30................... Ruling for trustee of a trust............................................. 592
359‑35................... Dealing with applications................................................ 592
359‑40................... Valuations....................................................................... 593
359‑45................... Related rulings................................................................ 594
359‑50................... Delays in making private rulings.................................... 594
359‑55................... Revised private rulings................................................... 595
359‑60................... Objections, reviews and appeals relating to private rulings 596
359‑65................... Commissioner may consider new information on objection 597
359‑70................... Successful objection decision alters ruling...................... 597
Division 360—Oral rulings 598
Guide to Division 360 598
360‑1..................... What this Division is about............................................. 598
Oral rulings 598
360‑5..................... Applying for and making of oral rulings........................ 598
360‑10................... Withdrawing an application for an oral ruling................. 599
360‑15................... Commissioner determinations......................................... 600
Division 361—Non‑ruling advice and general administrative practice 601
361‑5..................... Non‑ruling advice and general administrative practice.... 601
Part 5‑25—Record‑keeping and other obligations of taxpayers 602
Division 382—Record‑keeping 602
Guide to Division 382 602
382‑1..................... What this Division is about............................................. 602
Subdivision 382‑A—Keeping records of indirect tax transactions 602
382‑5..................... Keeping records of indirect tax transactions.................... 602
Subdivision 382‑B—Record keeping obligations of deductible gift recipients 606
382‑15................... Deductible gift recipients to keep records....................... 606
Division 388—Requirements about giving material to the Commissioner 608
Subdivision 388‑A—Object of Division 608
388‑5..................... Object of Division.......................................................... 608
Subdivision 388‑B—General provisions 608
388‑50................... Approved forms............................................................. 608
388‑52................... Saturdays, Sundays and public holidays......................... 609
388‑55................... Commissioner may defer time for lodgment................... 609
388‑60................... Declaration by entity....................................................... 610
388‑65................... Declaration by entity where agent gives document......... 610
388‑70................... Declaration by agent....................................................... 610
388‑75................... Signing declarations........................................................ 611
388‑80................... Electronic notification of BAS amounts.......................... 612
388‑85................... Truncating amounts........................................................ 612
Division 390—Superannuation reporting 613
Guide to Division 390 613
390‑1..................... What this Division is about............................................. 613
Subdivision 390‑A—Member information statements and roll‑over superannuation benefit statements 613
390‑5..................... Member information statements...................................... 613
390‑10................... Statements about roll‑over superannuation benefits etc... 615
390‑12................... Statements about benefits paid to KiwiSaver schemes.... 617
390‑15................... Superannuation statements to members.......................... 619
Subdivision 390‑B—Statements relating to release authorities 619
390‑65................... Statements relating to release authorities......................... 619
Subdivision 390‑C—Other statements 621
390‑115................. Change or omission in information given to the Commissioner 621
Division 391—First home saver account reporting 622
Guide to Division 391 622
391‑1..................... What this Division is about............................................. 622
Subdivision 391‑A—Account activity statements 622
391‑5..................... FHSA account activity statements.................................. 622
Subdivision 391‑B—Transfer statements 624
391‑10................... Statements about transfer payments between FHSAs etc. 624
Division 392—Employee share scheme reporting 626
Guide to Division 392 626
392‑1..................... What this Division is about............................................. 626
Subdivision 392‑A—Statements 626
392‑5..................... Statements by providers.................................................. 626
392‑10................... Change or omission in information given to the Commissioner 629
Subdivision 392‑B—Miscellaneous 630
392‑15................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997 630
Division 394—Reporting about forestry managed investment schemes 631
Guide to Division 394 631
394‑1..................... What this Division is about............................................. 631
394‑5..................... Statements about initial contributions to scheme............. 631
394‑10................... Statements about failure to establish trees within 18 months 632
Division 398—Miscellaneous reporting obligations 634
Guide to Division 398 634
398‑1..................... What this Division is about............................................. 634
Subdivision 398‑A—Farm Management Deposit reporting 634
398‑5..................... Reporting to Agriculture Department.............................. 634
Part 5‑30—Payment, ABN and identification verification system 636
Division 400—Guide to Part 5‑30 636
400‑1..................... What Part 5‑30 is about.................................................. 636
400‑5..................... The payment, ABN and identification verification system 636
Division 405—Transaction reporting by purchasers 637
405‑5..................... Payments to which this Division applies........................ 637
405‑10................... Reporting requirements................................................... 637
405‑15................... Invoices produced by purchasers.................................... 638
Division 410—Transaction reporting by suppliers 639
410‑5..................... Payments to which this Division applies........................ 639
410‑10................... Reporting requirements................................................... 639
410‑15................... Invoices produced by purchasers.................................... 640
Division 415—Verification of suppliers’ ABNs by purchasers 641
415‑5..................... Payments to which this Division applies........................ 641
415‑10................... ABN verification requirements....................................... 641
415‑15................... Method of obtaining ABN verification........................... 642
415‑20................... Verification applies to later payments............................. 642
Division 417—Verification of suppliers’ identities by purchasers 643
417‑5..................... Payments to which this Division applies........................ 643
417‑10................... Identity verification requirements.................................... 643
417‑15................... Method of obtaining identity verification........................ 643
417‑20................... Verification applies to later payments............................. 644
Division 420—Penalties for not reporting or verifying 645
420‑5..................... Failing to report or verify: administrative penalty........... 645
Division 425—Other matters 646
425‑20................... Constructive payment..................................................... 646
425‑25................... Non‑cash benefits........................................................... 646
Part 5‑35—Registration and similar processes for various taxes 647
Division 426—Process of endorsing charities and other entities 647
Guide to Division 426 647
426‑1..................... What this Division is about............................................. 647
Subdivision 426‑A—Application of Subdivision 426‑B to various kinds of endorsement 647
426‑5..................... Application of Subdivision 426‑B to various kinds of endorsement 648
426‑10................... How Subdivision 426‑B applies to government entities in relation to endorsement under section 30‑120 of the Income Tax Assessment Act 1997................................... 648
Subdivision 426‑B—Process of endorsement etc. 649
426‑15................... Applying for endorsement.............................................. 649
426‑20................... Dealing with an application for endorsement.................. 650
426‑25................... Notifying outcome of application for endorsement......... 651
426‑30................... Date of effect of endorsement......................................... 651
426‑35................... Review of refusal of endorsement.................................. 651
426‑40................... Checking entitlement to endorsement.............................. 651
426‑45................... Telling Commissioner of loss of entitlement to endorsement 652
426‑50................... Partnerships and unincorporated bodies......................... 653
426‑55................... Revoking endorsement................................................... 653
426‑60................... Review of revocation of endorsement............................. 654
Subdivision 426‑C—Entries on Australian Business Register 654
426‑65................... Entries on Australian Business Register......................... 655
Subdivision 426‑D—Public and private ancillary funds 656
Guide to Subdivision 426‑D 656
426‑100................. What this Subdivision is about....................................... 656
Public ancillary funds 657
426‑102................. Public ancillary funds..................................................... 657
426‑103................. Public ancillary fund guidelines...................................... 658
426‑104................. Australian Business Register must show public ancillary fund status 658
Private ancillary funds 659
426‑105................. Private ancillary funds.................................................... 659
426‑110................. Private ancillary fund guidelines..................................... 659
426‑115................. Australian Business Register must show private ancillary fund status 660
Administrative penalties 660
426‑120................. Administrative penalties for trustees of ancillary funds.. 660
Suspension and removal of trustees 662
426‑125................. Suspension or removal of trustees.................................. 662
426‑130................. Commissioner to appoint acting trustee in cases of suspension or removal 663
426‑135................. Terms and conditions of appointment of acting trustee... 664
426‑140................. Termination of appointment of acting trustee.................. 664
426‑145................. Resignation of acting trustee........................................... 664
426‑150................. Property vesting orders................................................... 665
426‑155................. Powers of acting trustee.................................................. 665
426‑160................. Commissioner may give directions to acting trustee....... 665
426‑165................. Property vested in acting trustee—former trustees’ obligations relating to books, identification of property and transfer of property......................................................... 666
Transfers between ancillary funds 667
426‑170................. Ancillary funds must not provide funds to other ancillary funds 667
Part 5‑45—Application of taxation laws to certain entities 668
Division 444—Obligations of entities on behalf of other entities 668
Guide to Division 444 668
444‑1..................... What this Division is about............................................. 668
Subdivision 444‑A—Unincorporated associations and bodies and companies 668
444‑5..................... Unincorporated associations and bodies......................... 668
444‑10................... Public officers of companies........................................... 669
444‑15................... Notifying and serving companies................................... 670
Subdivision 444‑B—Partnerships 670
444‑30................... Partnerships.................................................................... 671
Subdivision 444‑C—Superannuation funds 671
444‑50................... Superannuation funds..................................................... 671
Subdivision 444‑D—Incapacitated entities 672
444‑70................... Representatives of incapacitated entities.......................... 672
Subdivision 444‑E—Indirect tax specific entities 673
444‑80................... GST joint ventures.......................................................... 673
444‑85................... Non‑profit sub‑entities.................................................... 675
444‑90................... GST groups.................................................................... 676
Subdivision 444‑F—Trusts 679
444‑120................. Trusts.............................................................................. 679
Division 446—Local governing bodies 683
Guide to Division 683
446‑1..................... What this Division is about............................................. 683
Operative provisions 683
446‑5..................... Requirements for unanimous resolutions by local governing bodies 683
Part 5‑100—Miscellaneous 687
Division 850—Transactions exempt from application of taxation laws 687
Subdivision 850‑A—Declaration relating to security or intelligence agency 687
850‑100................. Declaration relating to security or intelligence agency..... 687