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Taxation Administration Act 1953

Authoritative Version
  • - C2016C01143
  • In force - Superseded Version
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Act No. 1 of 1953 as amended, taking into account amendments up to Law Enforcement Legislation Amendment (State Bodies and Other Measures) Act 2016
An Act to provide for the administration of certain Acts relating to Taxation, and for purposes connected therewith
Administered by: Treasury
Registered 14 Dec 2016
Start Date 30 Nov 2016
End Date 01 Dec 2016

Taxation Administration Act 1953

No. 1, 1953

Compilation No. 141

Compilation date:                              30 November 2016

Includes amendments up to:            Act No. 86, 2016

Registered:                                         14 December 2016

This compilation is in 3 volumes

Volume 1:       sections 1–18

                        Schedule 1 (sections 6‑1 to 97‑35)

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

Volume 3:       Endnotes

Each volume has its own contents

 

 

 

 

 

 

 

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

 

About this compilation

This compilation

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

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

Uncommenced amendments

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

Application, saving and transitional provisions for provisions and amendments

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

Editorial changes

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

Modifications

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

Self‑repealing provisions

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

  

  

  


Contents

Part I—Preliminary                                                                                                              1

1............................ Short title............................................................................ 1

2............................ Interpretation....................................................................... 1

2A......................... Application of the Criminal Code....................................... 3

2B.......................... Act binds the Crown........................................................... 3

3............................ Application......................................................................... 4

3AA...................... Schedule 1.......................................................................... 4

Part IA—Administration                                                                                                   5

3A......................... General administration of Act............................................. 5

3B.......................... Annual report...................................................................... 5

3C.......................... Reporting of information about corporate tax entity with reported total income of $100 million or more............................................................................................ 6

3CA....................... Reporting of information by significant global entities....... 8

3E.......................... Reporting of information about entity with PRRT payable. 9

Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation                                                                                                                  11

4............................ Commissioner and Second Commissioners of Taxation... 11

4A......................... Statutory Agency etc. for purposes of Public Service Act 11

5............................ Tenure of Commissioner and Second Commissioners..... 11

5A......................... Remuneration and allowances of Commissioner and Second Commissioners         11

6............................ Leave of absence............................................................... 12

6A......................... Resignation....................................................................... 12

6B.......................... Acting appointments......................................................... 12

6C.......................... Suspension and removal from office of Commissioner or Second Commissioner  13

6D......................... Powers of Second Commissioner..................................... 15

7............................ Deputy Commissioners of Taxation................................. 15

8............................ Delegation......................................................................... 16

Part IIA—The general interest charge                                                                   17

8AAA................... Overview.......................................................................... 17

8AAB.................... When the general interest charge applies........................... 17

8AAC.................... Amount of the general interest charge............................... 23

8AAD................... What is the general interest charge rate?......................... 23

8AAE.................... When the charge is due and payable................................. 24

8AAF.................... Notification by Commissioner.......................................... 24

8AAG................... Remission of the charge.................................................... 25

8AAGA................ Rounding of the charge..................................................... 26

8AAH................... Judgment for payment of an unpaid amount..................... 26

Part IIB—Running balance accounts, application of payments and credits, and related matters          27

Division 1—Preliminary                                                                                            27

8AAZA................. Definitions........................................................................ 27

8AAZB................. Trustee to be treated as separate entity for each capacity... 29

Division 2—Running Balance Accounts (or RBAs)                                    30

8AAZC................. Establishment of RBAs.................................................... 30

8AAZD................. Allocation of tax debts to RBAs....................................... 30

8AAZF.................. General interest charge on RBA deficit debt..................... 31

8AAZG................. RBA statements................................................................ 31

8AAZH................. Liability for RBA deficit debt........................................... 31

8AAZI................... RBA statement to be evidence.......................................... 32

8AAZJ.................. Evidentiary certificate about RBA transactions etc............ 32

Division 3—Treatment of payments, credits and RBA surpluses       34

8AAZL.................. Amounts covered by this Division................................... 34

8AAZLA............... Method 1—allocating the amount first to an RBA............ 35

8AAZLB............... Method 2—applying the amount first against a non‑RBA tax debt          35

8AAZLC............... RBA surplus and related credits must remain equivalent if one or the other is applied            36

8AAZLD............... Special priority credits...................................................... 36

8AAZLE............... Instructions to Commissioner not binding........................ 37

Division 3A—Refunds of RBA surpluses and credits                                38

8AAZLF............... Commissioner must refund RBA surpluses and credits... 38

8AAZLG............... Retaining refunds until information or notification given.. 39

8AAZLGA............ Retaining refunds while Commissioner verifies information 39

8AAZLGB............ Retaining refunds until notification under Division 389 or ascertainment of liability               42

8AAZLH............... How refunds are made...................................................... 44

Division 4—Miscellaneous provisions about tax debts                             45

8AAZM................ When payments are treated as received............................. 45

8AAZMA............. Electronic payment of tax debts........................................ 45

8AAZMB.............. Saturdays, Sundays and public holidays........................... 45

8AAZN................. Overpayments made by the Commissioner under taxation laws              46

Part III—Prosecutions and offences                                                                        47

Division 1—Preliminary                                                                                            47

8A......................... Interpretation..................................................................... 47

8AB....................... Application of Part to the Development Allowance Authority Act 1992    48

8AC....................... Application of Part to the Tax Agent Services Act 2009.... 49

Division 2—Offences                                                                                                   50

Subdivision A—Failure to comply with taxation requirements                   50

8B.......................... Interpretation..................................................................... 50

8C.......................... Failure to comply with requirements under taxation law... 51

8D......................... Failure to answer questions when attending before the Commissioner etc.              52

8E.......................... Penalties for failure to comply with requirements under taxation law      52

8F.......................... Election to treat offence otherwise than as prescribed taxation offence    53

8G......................... Order to comply with requirement.................................... 53

8H......................... Penalty for failure to comply with order to comply........... 54

8HA...................... Court may order payment of amount in addition to penalty 55

Subdivision B—Offences relating to statements, records and certain other Acts          55

8J........................... Interpretation..................................................................... 55

8K.......................... False or misleading statements.......................................... 62

8L.......................... Incorrectly keeping records etc......................................... 63

8M......................... Penalties for offences against subsections 8K(1) and (1B) and 8L(1) and (1A)      65

8N......................... Recklessly making false or misleading statements............ 65

8Q......................... Recklessly incorrectly keeping records etc........................ 66

8R.......................... Penalties for offences against sections 8N and 8Q........... 67

8S.......................... Election to treat offence otherwise than as prescribed taxation offence    67

8T.......................... Incorrectly keeping records with intention of deceiving or misleading etc.              68

8U......................... Falsifying or concealing identity with intention of deceiving or misleading etc.       69

8V......................... Penalties for offences against sections 8T and 8U............ 69

8W......................... Court may order payment of amount in addition to penalty 70

Subdivision BA—Offences relating to tax file numbers                                74

8WA...................... Unauthorised requirement etc. that tax file number be quoted  74

8WB...................... Unauthorised recording etc. of tax file number................. 75

8WC...................... Conducting affairs so as to avoid tax file number requirements               76

Subdivision C—Miscellaneous                                                                              77

8XA...................... Unauthorised access to taxation records........................... 77

8Y......................... Liability of officers etc. of corporations............................ 78

8Z.......................... Evidentiary certificate relating to previous convictions..... 79

Division 3—Prosecution of taxation offences                                                81

8ZA....................... Prosecution of taxation offences....................................... 81

8ZB....................... Prosecution may be commenced at any time..................... 82

8ZC....................... Place where offence committed......................................... 82

8ZD....................... Conduct by employees or agents of corporations............. 83

8ZE........................ Civil penalty not payable if prosecution instituted............. 83

8ZF........................ Penalties for corporations................................................. 84

8ZG....................... Enforcement of orders for payment.................................. 84

8ZH....................... Penalties not to relieve from tax........................................ 85

Division 4—Prescribed taxation offences                                                        86

8ZJ........................ Prosecution of prescribed taxation offences...................... 86

8ZK....................... Protection of witnesses..................................................... 87

8ZL........................ Averment.......................................................................... 88

8ZM...................... Evidence of authority to institute proceedings................... 88

8ZN....................... Costs................................................................................. 89

Division 5—Service of summons for prescribed taxation offences    90

9............................ Interpretation..................................................................... 90

10.......................... Service of summons by post............................................. 90

11.......................... Notice of conviction in absentia....................................... 91

12.......................... Notice of intention to issue warrant in default of payment 91

13.......................... Limitation of action to enforce payment of fine................. 92

13A....................... Setting aside of conviction or order.................................. 92

13B........................ Proof of service of summons or notice............................. 95

13C........................ Application of other laws.................................................. 95

Division 6—Setting aside etc. of conviction or order on application of Commissioner                96

13CA..................... Setting aside etc. of conviction or order on application of Commissioner                96

Part IIIA—Co‑operation between Commonwealth and State taxation authorities          98

Division 1—Interpretation                                                                                       98

13D....................... Interpretation..................................................................... 98

Division 2—Trans‑border investigations                                                       100

13E........................ State taxation officers may refer matters to Commissioner for investigation            100

13F........................ Access to documents etc................................................. 100

13G....................... Commissioner may obtain information and evidence...... 101

Division 4—Certification by State taxation officer of copies of, and extracts from, documents             102

13K........................ Certification by State taxation officer of copies of, and extracts from, documents   102

Division 5—Australian Taxation Office may perform functions under State/Territory debits tax laws                                                                                                                    105

13L........................ Australian Taxation Office may perform functions under State/Territory debits tax laws        105

Part IVA—Departure from Australia of certain tax debtors                 107

Division 1—Interpretation                                                                                     107

14Q....................... Interpretation................................................................... 107

Division 2—Prohibition and authorisation of departure of certain tax debtors               108

14R........................ Departure from Australia of certain tax debtors prohibited 108

14S........................ Departure prohibition orders........................................... 108

14T........................ Revocation and variation of departure prohibition orders 109

14U....................... Departure authorisation certificates................................. 111

Division 3—Appeals from, and review of, decisions of the Commissioner          113

14V....................... Appeals to courts against making of departure prohibition orders           113

14W....................... Jurisdiction of courts...................................................... 113

14X....................... Orders of court on appeal............................................... 113

14Y....................... Applications for review of certain decisions................... 114

Division 4—Enforcement                                                                                        115

14Z........................ Powers of authorised officers......................................... 115

14ZA..................... Certain tax debtors to produce authority to depart etc..... 116

Part IVC—Taxation objections, reviews and appeals                                 117

Division 1—Introduction                                                                                        117

14ZL...................... Part applies to taxation objections................................... 117

14ZM.................... Division 2—Interpretive................................................. 117

14ZN..................... Division 3—Taxation objections.................................... 117

14ZO..................... Division 4—Tribunal review.......................................... 117

14ZP...................... Division 5—Federal Court appeals................................. 117

Division 2—Interpretive provisions                                                                  118

14ZQ..................... General interpretation provisions.................................... 118

14ZR..................... Taxation decisions covered by single notice to be treated as single decision            119

14ZS...................... Ineligible income tax remission decisions....................... 120

Division 3—Taxation objections                                                                         121

14ZU..................... How taxation objections are to be made.......................... 121

14ZV..................... Limited objection rights in the case of certain amended taxation decisions               121

14ZVA.................. Limited objection rights because of other objections....... 121

14ZVB.................. Objections relating to excess concessional contributions 122

14ZVC.................. Objections relating to non‑concessional contributions.... 123

14ZW.................... When taxation objections are to be made........................ 124

14ZX..................... Commissioner to consider applications for extension of time  131

14ZY..................... Commissioner to decide taxation objections................... 131

14ZYA.................. Person may require Commissioner to make an objection decision           132

14ZYB.................. Requiring Commissioner to make a private ruling.......... 133

14ZZ...................... Person may seek review of, or appeal against, Commissioner’s decision                133

Division 4—AAT review of objection decisions and extension of time refusal decisions             135

14ZZA................... Modified AAT Act to apply........................................... 135

14ZZB................... Sections 27, 28, 41 and 44A of the AAT Act not to apply to certain decisions       135

14ZZC................... Modification of section 29 of the AAT Act.................... 135

14ZZD................... Modification of section 30 of the AAT Act.................... 136

14ZZE................... Hearings before Tribunal to be held in private if applicant so requests    136

14ZZF................... Modification of section 37 of the AAT Act.................... 136

14ZZG................... Modification of section 38 of the AAT Act.................... 138

14ZZJ.................... Modification of section 43 of the AAT Act.................... 138

14ZZK................... Grounds of objection and burden of proof..................... 139

14ZZL................... Implementation of Tribunal decisions............................. 139

14ZZM.................. Pending review not to affect implementation of taxation decisions          139

Division 5—Court appeals against objection decisions                          140

14ZZN................... Time limit for appeals..................................................... 140

14ZZO................... Grounds of objection and burden of proof..................... 140

14ZZP................... Order of court on objection decision............................... 140

14ZZQ................... Implementation of court order in respect of objection decision                140

14ZZR................... Pending appeal not to affect implementation of taxation decisions           141

14ZZS................... Transfer of certain proceedings to Family Court............. 141

Part V—Miscellaneous                                                                                                    144

15.......................... Appearance by Commissioner etc................................... 144

15A....................... Certification by Commissioner of copies of, and extracts from, documents             145

15B........................ Recoverable advances..................................................... 147

15C........................ Recoverable payments.................................................... 149

15D....................... Reports about recoverable advances and recoverable payments               150

16.......................... Payments out of Consolidated Revenue Fund................ 152

16A....................... Regulations may provide for methods of payment of tax liabilities etc.    153

16B........................ Certain liabilities to be reduced to nearest multiple of 5 cents.. 154

17.......................... Powers of taxation officers in relation to references to currency etc.        154

17A....................... Powers of Federal Court and Federal Circuit Court in respect of taxation matters   155

18.......................... Regulations..................................................................... 156

Schedule 1—Collection and recovery of income tax and other liabilities               157

Chapter 2—Collection, recovery and administration of income tax  157

Part 2‑1—Introduction to the Pay as you go (PAYG) system            157

Division 6Guide to Parts 2‑5 and 2‑10                                                          157

6‑1......................... What Parts 2‑5 and 2‑10 are about.................................. 157

6‑5......................... The Pay as you go (PAYG) system............................... 157

6‑10....................... How the amounts collected are dealt with....................... 158

Part 2‑5—Pay as you go (PAYG) withholding                                           159

Division 10Guide to Part 2‑5                                                                           159

10‑1....................... What this Part is about.................................................... 159

10‑5....................... Summary of withholding payments................................ 159

Division 11—Preliminary matters                                                                    162

11‑1....................... Object of this Part........................................................... 162

11‑5....................... Constructive payment..................................................... 162

Division 12—Payments from which amounts must be withheld                 164

Subdivision 12‑A—General rules                                                                       164

12‑1....................... General exceptions.......................................................... 164

12‑5....................... What to do if more than one provision requires a withholding 165

12‑7....................... Division does not apply to alienated personal services payments             167

12‑10..................... Division does not apply to non‑cash benefits................. 168

12‑20..................... Application of Division and regulations to non‑share dividends              168

Subdivision 12‑B—Payments for work and services                                    168

12‑35..................... Payment to employee...................................................... 168

12‑40..................... Payment to company director.......................................... 169

12‑45..................... Payment to office holder................................................. 169

12‑47..................... Payment to religious practitioners................................... 170

12‑50..................... Return to work payment................................................. 170

12‑55..................... Voluntary agreement to withhold.................................... 170

12‑60..................... Payment under labour hire arrangement, or specified by regulations       171

Subdivision 12‑C—Payments for retirement or because of termination of employment            172

12‑80..................... Superannuation income streams and annuities................ 172

12‑85..................... Superannuation lump sums and payments for termination of employment              172

12‑90..................... Unused leave payments.................................................. 172

Subdivision 12‑D—Benefit and compensation payments                             173

12‑110................... Social Security or other benefit payment......................... 173

12‑115................... Commonwealth education or training payment............... 174

12‑120................... Compensation, sickness or accident payment................. 174

Subdivision 12‑E—Payments where TFN or ABN not quoted                    174

Payment in respect of investment                                                                       175

12‑140................... Recipient does not quote tax file number........................ 175

12‑145................... Investor becoming presently entitled to income of a unit trust  176

12‑150................... Limited application of section 12‑140 to payment under financial arrangement       176

12‑155................... When investor may quote ABN as alternative................ 177

12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying                178

12‑165................... Exception for fully franked dividend.............................. 178

12‑170................... Exception for payments below thresholds set by regulations 178

Payment of income of closely held trust where TFN not quoted                179

12‑175................... Trustee distributes income of closely held trust.............. 179

12‑180................... Beneficiary becomes presently entitled to income of closely held trust    181

12‑185................... Exception for payments below thresholds set by regulations 182

Payment for a supply                                                                                            182

12‑190................... Recipient does not quote ABN....................................... 182

Subdivision 12‑F—Dividend, interest and royalty payments                      185

Dividends           186

12‑210................... Dividend payment to overseas person............................ 186

12‑215................... Dividend payment received for foreign resident............. 187

12‑220................... Application to part of a dividend..................................... 187

12‑225................... Application to distribution by a liquidator or other person 187

Interest               188

12‑245................... Interest payment to overseas person............................... 188

12‑250................... Interest payment received for foreign resident................ 188

12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 189

12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment        189

Royalties            190

12‑280................... Royalty payment to overseas person............................... 190

12‑285................... Royalty payment received for foreign resident................ 190

General              191

12‑300................... Limits on amount withheld under this Subdivision......... 191

Subdivision 12‑FA—Departing Australia superannuation payments       192

12‑305................... Departing Australia superannuation payment................. 192

12‑310................... Limits on amount withheld under this Subdivision......... 192

Subdivision 12‑FAA—Excess untaxed roll‑over amount                             192

12‑312................... Untaxed roll‑over superannuation benefits..................... 192

12‑313................... Limits on amount withheld under this Subdivision......... 193

Subdivision 12‑FB—Payments to foreign residents etc.                               193

12‑315................... Payment to foreign resident etc....................................... 193

12‑317................... Payment received for foreign resident etc....................... 195

12‑319................... Exemptions from withholding obligations under this Subdivision           196

Subdivision 12‑FC—Seasonal Labour Mobility Program                          197

12‑319A................ Payment to employee...................................................... 197

Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources                197

Mining on Aboriginal land                                                                                  198

12‑320................... Mining payment.............................................................. 198

Natural resources                                                                                                   198

12‑325................... Natural resource payment............................................... 198

12‑330................... Payer must ask Commissioner how much to withhold... 199

12‑335................... Commissioner may exempt from section 12‑330, subject to conditions   200

Subdivision 12‑H—Distributions of withholding MIT income                   201

Guide to Subdivision 12‑H                                                                                   201

12‑375................... What this Subdivision is about....................................... 201

Operative provisions                                                                                             202

12‑383................... Meaning of withholding MIT.......................................... 202

12‑385................... Withholding by withholding MITs................................. 203

12‑390................... Withholding by custodians and other entities.................. 204

12‑395................... Requirement to give notice or make information available 208

12‑405................... Meaning of fund payment—general case........................ 210

12‑410................... Entity to whom payment is made.................................... 212

12‑415................... Failure to give notice or make information available: administrative penalty            213

12‑420................... Agency rules................................................................... 213

12‑425................... Meaning of clean building managed investment trust.... 214

12‑430................... Meaning of clean building.............................................. 214

Division 12A—Distributions by AMITs (including deemed payments)    217

Guide to Division 12A                                                                                           217

12A‑1.................... What this Division is about............................................. 217

Subdivision 12A‑A—Distributions by AMITs relating to dividend, interest and royalties          218

Guide to Subdivision 12A‑A                                                                                 218

12A‑5.................... What this Subdivision is about....................................... 218

Operative provisions                                                                                             218

12A‑10.................. Deemed payments—no obligation to withhold under Subdivision 12‑F (dividend, interest and royalty payments)....................................................................... 218

12A‑15.................. Dividend, interest or royalty payments relating to AMIT—requirement to give notice or make information available.......................................................................... 219

12A‑20.................. Failure to give notice or make information available under section 12A‑15: administrative penalty         222

12A‑25.................. Meaning of AMIT DIR payment..................................... 222

12A‑30.................. Meaning of AMIT dividend payment.............................. 223

12A‑35.................. Meaning of AMIT interest payment................................ 224

12A‑40.................. Meaning of AMIT royalty payment................................. 225

Subdivision 12A‑B—Distributions by AMITs relating to Subdivision 12‑H fund payments       226

Guide to Subdivision 12A‑B                                                                                 226

12A‑100................ What this Subdivision is about....................................... 226

Operative provisions                                                                                             226

12A‑105................ Deemed payments—no obligation to withhold under Subdivision 12‑H 226

12A‑110................ Meaning of fund payment—AMITs............................... 227

Subdivision 12A‑C—Deemed payments by AMITs etc.                                230

Guide to Subdivision 12A‑C                                                                                 230

12A‑200................ What this Subdivision is about....................................... 230

Operative provisions                                                                                             231

12A‑205................ Issue of AMMA statement etc. deemed to be payment... 231

12A‑210................ Post‑AMMA actual payment and pre‑AMMA actual payment in respect of deemed payment  233

12A‑215................ AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc. 234

12A‑220................ Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc.           236

Division 13—Alienated personal services payments                                     239

13‑1....................... Object of this Division.................................................... 239

13‑5....................... Payment to the Commissioner in respect of alienated personal services payments   239

13‑10..................... Alienated personal services payments............................. 242

13‑15..................... Personal services payment remitters............................... 243

13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01    244

Division 14—Non‑cash benefits, and accruing gains, for which amounts must be paid to the Commissioner       245

Subdivision 14‑A—Non‑cash benefits                                                               245

14‑1....................... Object of this Subdivision.............................................. 245

14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding..................................................................... 245

14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit              246

14‑15..................... Payer can recover amount paid to the Commissioner...... 247

Subdivision 14‑B—Accruing gains                                                                    247

14‑50..................... Object of this Subdivision.............................................. 247

14‑55..................... Liability for TFN withholding tax................................... 248

14‑60..................... Investment body may recover TFN withholding tax from investor          249

14‑65..................... Application of rules in Division 18................................. 249

14‑75..................... Overpayment of TFN withholding tax............................ 250

14‑85..................... Other laws do not exempt from TFN withholding tax.... 250

Subdivision 14‑C—Shares and rights under employee share schemes     251

14‑155................... Liability for TFN withholding tax (ESS)........................ 251

14‑160................... Employer may give individual tax file numbers to provider 252

14‑165................... Provider may recover TFN withholding tax (ESS) from individual         253

14‑170................... Application of rules in Division 18................................. 253

14‑175................... Overpayment of TFN withholding tax (ESS)................. 253

14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997  253

Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property        254

14‑200................... Certain acquisitions of taxable Australian property from foreign residents              254

14‑205................... Effect of look‑through earnout rights.............................. 255

14‑210................... Whether an entity is a relevant foreign resident............... 256

14‑215................... Excluded transactions..................................................... 258

14‑220................... Commissioner clearance certificates................................ 260

14‑225................... Entity declarations........................................................... 261

14‑230................... Administrative penalties for false or misleading declarations 261

14‑235................... Varying amounts to be paid to the Commissioner.......... 263

Division 15—Working out the amount to withhold                                       264

Guide to Division 15                                                                                              264

15‑1....................... What this Division is about............................................. 264

Subdivision 15‑A—Working out how much to withhold                              264

15‑10..................... How much to withhold................................................... 265

15‑15..................... Variation of amounts required to be withheld................. 265

Subdivision 15‑B—Withholding schedules and regulations                        266

15‑25..................... Commissioner’s power to make withholding schedules. 266

15‑30..................... Matters to be considered when making withholding schedules                267

15‑35..................... Regulations about withholding....................................... 268

Subdivision 15‑C—Declarations                                                                        269

15‑50..................... Declarations.................................................................... 269

Division 16—Payer’s obligations and rights                                                   271

Guide to Division 16                                                                                              271

16‑1....................... What this Division is about............................................. 271

Subdivision 16‑A—To withhold                                                                          271

When to withhold                                                                                                    272

16‑5....................... When to withhold an amount.......................................... 272

16‑7....................... Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12     272

16‑20..................... Payer discharged from liability to recipient for amount withheld             273

Penalties for not withholding                                                                              273

16‑25..................... Failure to withhold: offence............................................ 273

16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 274

16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty............................ 274

16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment.............................................. 275

16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.......................................................... 276

Subdivision 16‑B—To pay withheld amounts to the Commissioner         276

When and how to pay amounts to the Commissioner                                    277

16‑70..................... Entity to pay amounts to Commissioner......................... 277

16‑75..................... When amounts must be paid to Commissioner............... 277

16‑80..................... Penalty for failure to pay within time.............................. 279

16‑85..................... How amounts are to be paid........................................... 279

Who is a large, medium or small withholder                                                  280

16‑95..................... Meaning of large withholder.......................................... 280

16‑100................... Meaning of medium withholder...................................... 281

16‑105................... Meaning of small withholder.......................................... 282

16‑110................... Commissioner may vary withholder’s status downwards 282

16‑115................... Commissioner may vary withholder’s status upwards... 282

Subdivision 16‑BA—To be registered                                                               284

Registration of withholders                                                                                 284

16‑140................... Withholders must be registered....................................... 284

16‑141................... Registration and cancellation........................................... 285

Branch registration                                                                                               285

16‑142................... Branches may be registered............................................ 285

16‑143................... Separate amounts for entities and branches..................... 286

16‑144................... Cancellation of branch registration.................................. 287

16‑145................... Effect on branches of cancelling the entity’s registration 287

Subdivision 16‑C—To provide information                                                   287

To the Commissioner                                                                                            288

16‑150................... Commissioner must be notified of amounts.................... 288

16‑152................... Annual reports—Withholding payments covered by section 12‑175       288

16‑153................... Annual reports—other payments.................................... 289

To recipients of withholding payments                                                             292

16‑155................... Annual payment summary.............................................. 292

16‑156................... Annual payment summary for sections 12‑175 and 12‑180 294

16‑157................... Payment summary for Subdivision 12‑H....................... 294

16‑160................... Part‑year payment summary........................................... 295

16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment         296

16‑166................... Payment summary for a departing Australia superannuation payment     297

16‑167................... Payment summary for payment to recipient who does not quote ABN    297

16‑170................... Form and content of payment summary.......................... 297

16‑175................... Penalty for not providing payment summary.................. 299

16‑180................... Commissioner may exempt entity from giving payment summary           299

16‑182................... Definition of reportable employer superannuation contribution             300

Subdivision 16‑D—Additional rights and obligations of entity that makes a payment                301

16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes    301

Division 18—Recipient’s entitlements and obligations                                 303

Subdivision 18‑A—Crediting withheld amounts                                            303

Guide to Subdivision 18‑A                                                                                    303

18‑1....................... What this Subdivision is about....................................... 303

General exception                                                                                                  304

18‑5....................... No credit for refunded amount........................................ 304

Entitlement to credits: income tax liability                                                     305

18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 305

18‑15..................... Tax credit for recipient of withholding payments............ 305

18‑20..................... Tax credit where recipient is a partnership...................... 306

18‑25..................... Tax credit where recipient is a trust................................. 307

18‑27..................... Tax credit for alienated personal services payments........ 309

Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program                                                                    309

18‑30..................... Credit: dividend, interest or royalty................................. 309

18‑32..................... Credit: amount attributable to fund payment................... 310

18‑33..................... Credit: Seasonal Labour Mobility Program.................... 311

18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge               311

18‑40..................... Credit: liability under Part 4‑25....................................... 313

Entitlement to credit: departing Australia superannuation payment       314

18‑42..................... Credit—departing Australia superannuation payment..... 314

Entitlement to credit: mining payment                                                             315

18‑45..................... Credit—mining payment................................................. 315

Entitlement to credit: Petroleum resource rent tax                                       316

18‑55..................... Credit—Natural resource payments................................ 316

Subdivision 18‑B—Refund of certain withheld amounts                             317

18‑65..................... Refund of withheld amounts by the payer to the recipient 317

18‑70..................... Refund of withheld amounts by the Commissioner to the recipient         320

18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment           322

Subdivision 18‑C—Recipient’s obligations                                                      323

18‑100................... Obligation to keep payment summary............................. 323

Subdivision 18‑D—Directors etc. of non‑complying companies                323

Object of Subdivision                                                                                            324

18‑120................... Object of Subdivision..................................................... 324

PAYG withholding non‑compliance tax                                                           324

18‑125................... Directors of non‑complying companies.......................... 324

18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances       326

18‑135................... Associates of directors of non‑complying companies..... 328

18‑140................... Notices............................................................................ 331

18‑145................... When PAYG withholding non‑compliance tax must be paid.. 333

18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax               333

18‑155................... Validity of decisions and evidence.................................. 334

18‑160................... Rights of indemnity and contribution.............................. 334

Credits for later compliance                                                                               335

18‑165................... Credits for later compliance—scope............................... 335

18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances          336

18‑175................... Credits for later compliance—Commissioner may give notice 337

18‑180................... Effect of earlier credits.................................................... 338

Other provisions                                                                                                     339

18‑185................... When Commissioner may give notice............................. 339

18‑190................... Review of decisions........................................................ 340

Division 20—Other matters                                                                                 341

Subdivision 20‑B—Offences                                                                                341

20‑35..................... Offences......................................................................... 341

20‑40..................... Joining of charges........................................................... 342

20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company    343

Subdivision 20‑D—Review of decisions                                                            344

20‑80..................... Reviewable decisions...................................................... 344

Division 21—Entitlements relating to insolvent ADIs and general insurers 346

Guide to Division 21                                                                                              347

21‑1....................... What this Division is about............................................. 346

Subdivision 21‑A—Treatment of some payments by APRA                       346

21‑5....................... APRA treated like ADI or general insurance company.. 346

Part 2‑10—Pay as you go (PAYG) instalments                                          348

Division 45—Instalment payments                                                                    348

Guide to Division 45                                                                                              350

45‑1....................... What this Division is about............................................. 349

Subdivision 45‑A—Basic rules                                                                            350

45‑5....................... Object of this Part........................................................... 350

45‑10..................... Application of Part.......................................................... 352

45‑15..................... Liability for instalments.................................................. 352

45‑20..................... Information to be given to the Commissioner by certain payers               353

45‑25..................... Penalty for failure to notify Commissioner..................... 353

45‑30..................... Credit for instalments payable......................................... 354

Subdivision 45‑B—When instalments are due                                                355

45‑50..................... Liability to pay instalments............................................. 355

45‑60..................... Meaning of instalment quarter....................................... 356

45‑61..................... When quarterly instalments are due—payers of quarterly instalments     356

45‑65..................... Meaning of instalment month......................................... 357

45‑67..................... When monthly instalments are due—payers of monthly instalments       358

45‑70..................... When annual instalments are due.................................... 358

45‑72..................... Means of payment of instalment..................................... 359

45‑75..................... Instalments recoverable in same way as income tax........ 359

45‑80..................... General interest charge on late payment.......................... 359

45‑90..................... Commissioner may withdraw instalment rate................. 359

Subdivision 45‑C—Working out instalment amounts                                   360

45‑110................... How to work out amount of quarterly instalment on instalment income basis         360

45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax   361

45‑114................... How to work out amount of monthly instalment............ 362

45‑115................... How to work out amount of annual instalment............... 363

45‑120................... Meaning of instalment income........................................ 364

Subdivision 45‑D—Quarterly payers                                                                368

45‑125................... Quarterly payer who pays instalments on the basis of instalment income                368

45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax     370

45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 372

45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 373

Subdivision 45‑DA—Monthly payers                                                                374

45‑136................... Monthly payer................................................................ 374

45‑138................... Monthly payer requirement............................................. 375

Subdivision 45‑E—Annual payers                                                                     377

When you start and stop being an annual payer                                            377

45‑140................... Choosing to pay annual instalments................................ 377

45‑145................... Meaning of instalment group......................................... 379

45‑150................... Entity stops being annual payer if involved with GST registration or instalment group           380

45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly      381

45‑160................... Head company of a consolidated group stops being annual payer           381

Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income                                                                                         382

45‑200................... Application..................................................................... 382

45‑205................... Choosing a varied instalment rate................................... 383

45‑210................... Notifying Commissioner of varied instalment rate.......... 384

45‑215................... Credit on using varied rate in certain cases..................... 384

Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low              385

45‑225................... Effect of Subdivision in relation to monthly payers........ 385

45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate     385

45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax........................................................................................ 387

45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment      396

45‑235................... Liability to GIC on shortfall in annual instalment........... 397

45‑240................... Commissioner may remit general interest charge............ 399

Subdivision 45‑H—Partnership income                                                           399

45‑260................... Instalment income for a period in which you are in a partnership            399

Subdivision 45‑I—Trust income included in instalment income of beneficiary            400

45‑280................... Instalment income for a period in which you are a beneficiary of a trust  400

45‑285................... Instalment income includes distributions by certain resident unit trusts   403

45‑286................... Instalment income includes distributions by certain managed investment trusts       404

45‑287................... When trusts are disqualified due to concentrated ownership 405

45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled  407

45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income                407

Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax          408

45‑320................... Working out instalment rate............................................ 408

45‑325................... Working out your notional tax........................................ 409

45‑330................... Working out your adjusted taxable income.................... 410

45‑335................... Working out your adjusted withholding income............. 413

45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income           413

Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax             416

45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax      416

45‑360................... How Commissioner works out benchmark instalment rate 417

45‑365................... Working out your benchmark tax................................... 417

45‑370................... Working out your adjusted assessed taxable income for the variation year             418

45‑375................... Adjusted assessed tax on adjusted assessed taxable income 419

Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax                                                                                                 421

45‑400................... Working out amount of instalment—payers of 4 quarterly instalments    421

45‑402................... Working out amount of instalment—payers of 2 quarterly instalments    423

45‑405................... Working out your GDP‑adjusted notional tax................ 425

Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax                                                                                                 427

45‑410................... Working out amount of instalment—payers of 4 quarterly instalments    427

45‑412................... Working out amount of instalment—payers of 2 quarterly instalments    429

45‑415................... Estimating your benchmark tax....................................... 431

45‑420................... Credit in certain cases where amount of instalment is nil 432

Subdivision 45‑N—How this Part applies to the trustee of a trust             432

Trustees to whom this Part applies                                                                    433

45‑450................... Trustees to whom a single instalment rate is given......... 433

45‑455................... Trustees to whom several instalment rates are given....... 433

45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 434

45‑465................... Meaning of instalment income........................................ 435

45‑468................... Multi‑rate trustee may pay quarterly instalments............. 435

How Commissioner works out instalment rate and notional tax for a multi‑rate trustee            435

45‑470................... Working out instalment rate............................................ 435

45‑473................... Commissioner must notify you of notional tax............... 436

45‑475................... Working out your notional tax........................................ 437

45‑480................... Working out your adjusted taxable income.................... 437

45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share         438

45‑485................... Working out your adjusted withholding income............. 438

How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee                439

45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax      439

45‑530................... How Commissioner works out benchmark instalment rate 440

45‑535................... Working out your benchmark tax................................... 440

Subdivision 45‑P—Anti‑avoidance rules                                                          441

45‑595................... Object of this Subdivision.............................................. 441

45‑597................... Effect of Subdivision in relation to instalment months.... 442

45‑600................... General interest charge on tax benefit relating to instalments 442

45‑605................... When do you get a tax benefit from a scheme?............... 444

45‑610................... What is your tax position for an income year?................ 444

45‑615................... What is your hypothetical tax position for an income year? 447

45‑620................... Amount on which GIC is payable, and period for which it is payable     447

45‑625................... Credit if you also got a tax detriment from the scheme... 448

45‑630................... When do you get a tax detriment from a scheme?........... 449

45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides                450

45‑640................... Commissioner may remit general interest charge in special cases            452

Subdivision 45‑Q—General rules for consolidated groups                         452

Guide to Subdivision 45‑Q                                                                                   452

45‑700................... What this Subdivision is about....................................... 452

Application of Subdivision                                                                                   453

45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers       453

45‑705................... Application of Subdivision to head company................. 454

Usual operation of this Part for consolidated group members                  458

45‑710................... Single entity rule............................................................. 458

45‑715................... When instalments are due—modification of section 45‑61 459

45‑720................... Head company cannot be an annual payer—modification of section 45‑140           459

Membership changes                                                                                             459

45‑740................... Change of head company................................................ 459

45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group)              462

45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group)           463

45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax   465

Subdivision 45‑R—Special rules for consolidated groups                           467

Guide to Subdivision 45‑R                                                                                    467

45‑850................... What this Subdivision is about....................................... 467

Operative provisions                                                                                             468

45‑855................... Section 701‑1 disregarded for certain purposes.............. 468

45‑860................... Member having a different instalment period.................. 468

45‑865................... Credit rule....................................................................... 469

45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment       471

45‑875................... Other rules about the general interest charge................... 474

45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group          475

45‑885................... Early application of Subdivision 45‑Q to the head company of a new group           477

Subdivision 45‑S—MEC groups                                                                         478

Guide to Subdivision 45‑S                                                                                    478

45‑900................... What this Subdivision is about....................................... 478

Preliminary                                                                                                             479

45‑905................... Objects of Subdivision................................................... 479

General modification rules                                                                                  480

45‑910................... Extended operation of Part to cover MEC groups.......... 480

Extended operation of Subdivision 45‑Q                                                         481

45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups  481

45‑915................... Application of Subdivision 45‑Q to provisional head company               481

45‑917................... Assumption for applying section 45‑710 (single entity rule) 485

45‑920................... Change of provisional head company............................. 485

45‑922................... Life insurance company.................................................. 488

Extended operation of Subdivision 45‑R                                                          489

45‑925................... Additional modifications of sections 45‑855 and 45‑860 489

45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision     489

45‑935................... Additional modifications of section 45‑885.................... 490

Part 2‑15—Returns and assessments                                                               491

Division 70Tax receipts                                                                                    491

Guide to Division 70                                                                                              492

70‑1....................... What this Division is about............................................. 491

Subdivision 70‑A—Tax receipts                                                                         491

70‑5....................... Tax receipt to be provided to certain individual taxpayers 492

Part 2‑30—Collecting Medicare levy with income tax                           494

Division 90Medicare levy and Medicare levy surcharge                        494

Subdivision 90‑A—Treatment like income tax                                               494

90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 494

Part 2‑35—Excess superannuation contributions                                     495

Division 95—Excess concessional contributions charge                              495

Guide to Division 95                                                                                              496

95‑1....................... What this Division is about............................................. 495

Subdivision 95‑A—Object of Division                                                              495

95‑5....................... Object of Division.......................................................... 495

Subdivision 95‑B—Excess concessional contributions charge                   496

95‑10..................... Liability to excess concessional contributions charge..... 496

95‑15..................... Amount of excess concessional contributions charge..... 497

95‑20..................... When excess concessional contributions charge is due and payable        497

95‑25..................... General interest charge.................................................... 498

Division 96—Releasing money from superannuation                                  499

Subdivision 96‑A—Releasing money from superannuation                       499

Guide to Subdivision 96‑A                                                                                    499

96‑1....................... What this Subdivision is about....................................... 499

Requesting a release authority                                                                            500

96‑5....................... Electing to release excess concessional contributions..... 500

96‑7....................... Electing to release non‑concessional contributions etc.... 502

Issuing a release authority to superannuation provider                              504

96‑10..................... Release authorities for elections under section 96‑5........ 504

96‑12..................... Release authorities for elections under section 96‑7........ 505

96‑15..................... Varying and revoking a release authority........................ 505

Complying with a release authority                                                                  505

96‑20..................... Obligations of superannuation providers........................ 505

96‑25..................... Voluntary compliance with a release authority relating to voluntary release interests and defined benefit interests........................................................................... 507

96‑30..................... Meaning of maximum available release amount............ 507

96‑35..................... Notifying Commissioner................................................ 507

96‑40..................... Notifying individual—unsuccessful release attempt....... 508

96‑42..................... Notifying individual—successful releases under section 96‑12               509

96‑45..................... Compensation for acquisition of property....................... 509

Consequences of releasing amounts                                                                  509

96‑50..................... Entitlement to credits....................................................... 509

96‑55..................... Interest for late payments of money received by the Commissioner in accordance with release authority........................................................................................ 510

96‑60..................... Income tax treatment of amounts released—proportioning rule does not apply       510

Division 97—Excess contributions determinations                                       511

Subdivision 97‑A—Excess concessional contributions determinations    511

Guide to Subdivision 97‑A                                                                                    511

97‑1....................... What this Subdivision is about....................................... 511

Operative provisions                                                                                             511

97‑5....................... Determination of excess concessional contributions and charge              511

97‑10..................... Review............................................................................ 512

Subdivision 97‑B—Excess non‑concessional contributions determinations 512

Guide to Subdivision 97‑B                                                                                    512

97‑20..................... What this Subdivision is about....................................... 512

Operative provisions                                                                                             513

97‑25..................... Excess non‑concessional contributions determinations... 513

97‑30..................... Associated earnings........................................................ 514

97‑35..................... Review............................................................................ 515


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

Part IPreliminary

  

1  Short title

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

2  Interpretation

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

approved form has the meaning given by Schedule 1.

ASIO means the Australian Security Intelligence Organisation.

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

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

Commissioner means the Commissioner of Taxation.

Deputy Commissioner means any Deputy Commissioner of Taxation.

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

engage in conduct means:

                     (a)  do an act; or

                     (b)  omit to perform an act.

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

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

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

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

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

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

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

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

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

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

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

migration officer means:

                     (a)  the Immigration Secretary; or

                     (b)  an employee of the Immigration Department.

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

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

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

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

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

Second Commissioner means a Second Commissioner of Taxation.

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

Note:          See also subsection (2).

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

Tribunal means the Administrative Appeals Tribunal.

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

2A  Application of the Criminal Code

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

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

2B  Act binds the Crown

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

3  Application

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

3AA  Schedule 1

             (1)  Schedule 1 has effect.

Definitions in Schedule 1 do not apply to rest of Act

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

Application of interpretation provisions of Income Tax Assessment Act 1997

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

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

Part IAAdministration

  

3A  General administration of Act

                   The Commissioner has the general administration of this Act.

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

3B  Annual report

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

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

                     (b)  set out:

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

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

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

                     (c)  set out:

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

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

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

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

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

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

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

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

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

             (4)  In this section:

this Act does not include Part IVC.

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

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

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

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

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

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

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

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

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

             (3)  The information is as follows:

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

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

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

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

             (4)  Subsection (5) applies if:

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

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

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

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

3CA  Reporting of information by significant global entities

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

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

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

                              (i)  an Australian resident; or

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

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

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

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

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

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

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

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

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

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

                     (a)  must be prepared in accordance with:

                              (i)  the accounting principles; or

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

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

                              (i)  the entity; or

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

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

3E  Reporting of information about entity with PRRT payable

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

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

             (3)  The information is as follows:

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

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

             (4)  Subsection (5) applies if:

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

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

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

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

             (7)  In this section:

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

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

Part IICommissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation

  

4  Commissioner and Second Commissioners of Taxation

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

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

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

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

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

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

5  Tenure of Commissioner and Second Commissioners

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

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

5A  Remuneration and allowances of Commissioner and Second Commissioners

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

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

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

6  Leave of absence

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

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

6A  Resignation

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

6B  Acting appointments

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

                     (a)  during a vacancy in that office; or

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

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

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

                     (a)  during a vacancy in that office; or

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

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

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

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

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

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

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

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

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

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

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

             (6)  If:

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

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

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

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

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

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

6D  Powers of Second Commissioner

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

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

                     (a)  section 8 of this Act; or

                     (b)  a provision of a taxation law that:

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

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

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

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

7  Deputy Commissioners of Taxation

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

8  Delegation

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

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

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

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

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

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

Part IIAThe general interest charge

  

8AAA  Overview

This Part explains how to work out the general interest charge on an amount.

Usually, a person is liable to pay the charge if an amount that the person must pay to the Commissioner is not paid on time. But there are also other circumstances in which a person can be liable.

A person is only liable to pay the charge if a provision of an Act makes the person liable.

8AAB  When the general interest charge applies

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

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

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

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

 

Liability to general interest charge

 

Item

Column 1

Section

Column 2

Act

Column 3

Topic

 

1

162‑100

A New Tax System (Goods and Services Tax) Act 1999

payment of GST instalments

 

2

168‑10

A New Tax System (Goods and Services Tax) Act 1999

supplies later found to be GST‑free supplies

 

3

25‑10

A New Tax System (Wine Equalisation Tax) Act 1999

purchases later found to be GST free supplies

 

3A

175‑65

Australian Charities and Not‑for‑profits Commission Act 2012

payment of administrative penalty

 

5

93

Fringe Benefits Tax Assessment Act 1986

payment of fringe benefits tax

 

6

112B

Fringe Benefits Tax Assessment Act 1986

payment of fringe benefits tax instalments

 

7

102UP

Income Tax Assessment Act 1936

payment of trustee beneficiary non‑disclosure tax

 

8

128C

Income Tax Assessment Act 1936

payment of withholding tax

 

9

163AA

Income Tax Assessment Act 1936

returns by instalment taxpayers

 

10

163B

Income Tax Assessment Act 1936

returns by persons other than instalment taxpayers

 

10A

172A

Income Tax Assessment Act 1936

repayments of excessive tax offset refunds

 

11

271‑80 in Schedule 2F

Income Tax Assessment Act 1936

payment of family trust distribution tax

 

12

5‑15

Income Tax Assessment Act 1997

unpaid income tax or shortfall interest charge

 

13

197‑75

Income Tax Assessment Act 1997

payment of untainting tax

 

14

214‑155

Income Tax Assessment Act 1997

payment of franking tax by a corporate tax entity

 

15

292‑390

Income Tax Assessment Act 1997

payment of excess non‑concessional contributions tax or shortfall interest charge

 

15A

293‑75

Income Tax Assessment Act 1997

payment of Division 293 tax or shortfall interest charge

 

16A

418‑170

Income Tax Assessment Act 1997

payment of excess exploration credit tax or shortfall interest charge

 

17

721‑30

Income Tax Assessment Act 1997

liability of members of consolidated groups

 

18

840‑810

Income Tax Assessment Act 1997

payment of managed investment trust withholding tax

 

18A

840‑910

Income Tax Assessment Act 1997

payment of Seasonal Labour Mobility Program withholding tax

 

19

214‑105

Income Tax (Transitional Provisions) Act 1997

payment of franking deficit tax

 

20

85

Petroleum Resource Rent Tax Assessment Act 1987

payment of petroleum resource rent tax, shortfall interest charge or instalment transfer interest charge

 

20A

282‑19

Private Health Insurance Act 2007

repayment of private health insurance premium reduction or refund

 

21

35

Product Grants and Benefits Administration Act 2000

payment of a designated scheme debt

 

22

21

Superannuation Contributions Tax (Assessment and Collection) Act 1997

increase in liability to pay superannuation contributions surcharge because of amendment of assessment

 

23

22

Superannuation Contributions Tax (Assessment and Collection) Act 1997

liability to pay superannuation contributions surcharge because of new assessment

 

24

25

Superannuation Contributions Tax (Assessment and Collection) Act 1997

payment of superannuation contributions surcharge or advance instalment

 

25

18

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

increase in liability to pay superannuation contributions surcharge because of amendment of assessment

 

26

21

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

payment of superannuation contributions surcharge

 

27

25

Superannuation (Government Co‑contribution for Low Income Earners) Act 2003

repayments or underpayments of Government co‑contributions that cannot be credited to an account

 

28

49

Superannuation Guarantee (Administration) Act 1992

payment of superannuation guarantee charge

 

29

15DC

Superannuation (Self Managed Superannuation Funds) Taxation Act 1987

payment of superannuation (self managed superannuation funds) supervisory levy

 

30

17A

Superannuation (Unclaimed Money and Lost Members) Act 1999

payment of unclaimed money

 

31

18C

Superannuation (Unclaimed Money and Lost Members) Act 1999

repayment of Commissioner’s payment that cannot be credited to an account

 

32

20F

Superannuation (Unclaimed Money and Lost Members) Act 1999

payment of unclaimed superannuation of former temporary residents

 

33

20M

Superannuation (Unclaimed Money and Lost Members) Act 1999

repayment of Commissioner’s payment for former temporary resident that cannot be credited to an account

 

34

24F

Superannuation (Unclaimed Money and Lost Members) Act 1999

payment in respect of lost member accounts

 

35

24L

Superannuation (Unclaimed Money and Lost Members) Act 1999

repayment of Commissioner’s payment for former lost member that cannot be credited to an account

 

36

8AAZF

Taxation Administration Act 1953

RBA deficit debts

 

37

8AAZN

Taxation Administration Act 1953

overpayments made by the Commissioner

 

38

16‑80 in Schedule 1

Taxation Administration Act 1953

payment of PAYG withholding amounts

 

38A

18‑150 in Schedule 1

Taxation Administration Act 1953

PAYG withholding non‑compliance tax

 

39

45‑80 in Schedule 1

Taxation Administration Act 1953

payment of PAYG instalments

 

40

45‑230 in Schedule 1

Taxation Administration Act 1953

shortfall in quarterly PAYG instalments worked out on the basis of a varied rate

 

41

45‑232 in Schedule 1

Taxation Administration Act 1953

shortfall in quarterly PAYG instalments worked out on the basis of estimated benchmark tax

 

42

45‑235 in Schedule 1

Taxation Administration Act 1953

shortfall in annual PAYG instalments

 

43

45‑600 and 45‑620 in Schedule 1

Taxation Administration Act 1953

tax benefits relating to PAYG instalments

 

44

45‑870 and 45‑875 in Schedule 1

Taxation Administration Act 1953

head company’s liability on shortfall in quarterly PAYG instalments

 

44Q

95‑25 in Schedule 1

Taxation Administration Act 1953

payment of excess concessional contributions charge or shortfall interest charge

45

105‑80 in Schedule 1

Taxation Administration Act 1953

payment of a net fuel amount or an amount of indirect tax

 

45C

133‑115 in Schedule 1

Taxation Administration Act 1953

payment of debt account discharge liability

 

46

263‑30 in Schedule 1

Taxation Administration Act 1953

payment of a foreign revenue claim

 

47

268‑75 in Schedule 1

Taxation Administration Act 1953

late payment of estimate

 

48

298‑25 in Schedule 1

Taxation Administration Act 1953

payment of administrative penalty

 

50

13

Termination Payments Tax (Assessment and Collection) Act 1997

increase in liability to pay termination payments surcharge because of amendment of assessment

 

51

16

Termination Payments Tax (Assessment and Collection) Act 1997

payment of termination payments surcharge

 

8AAC  Amount of the general interest charge

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

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

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

                     (a)  the charge from previous days;

                     (b)  the original unpaid amount.

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

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

                     (b)  the specified amount.

8AAD  What is the general interest charge rate?

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

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

 

Base interest rate

Item

For days in this quarter...

the monthly average yield of 90‑day Bank Accepted Bills for this month applies...

1

1 January to 31 March

the preceding November

2

1 April to 30 June

the preceding February

3

1 July to 30 September

the preceding May

4

1 October to 31 December

the preceding August

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

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

8AAE  When the charge is due and payable

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

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

8AAF  Notification by Commissioner

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

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

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

8AAG  Remission of the charge

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

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

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

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

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

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

                     (a)  the circumstances that contributed to the delay in payment