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
3F.......................... Reporting of information about junior minerals exploration incentive offset 11
Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation 12
4............................ Commissioner and Second Commissioners of Taxation... 12
4A......................... Statutory Agency etc. for purposes of Public Service Act 12
5............................ Tenure of Commissioner and Second Commissioners..... 12
5A......................... Remuneration and allowances of Commissioner and Second Commissioners 12
6............................ Leave of absence............................................................... 13
6A......................... Resignation....................................................................... 13
6B.......................... Acting appointments......................................................... 13
6C.......................... Suspension and removal from office of Commissioner or Second Commissioner 14
6D......................... Powers of Second Commissioner..................................... 16
7............................ Deputy Commissioners of Taxation................................. 16
8............................ Delegation......................................................................... 17
Part IIA—The general interest charge 18
8AAA................... Overview.......................................................................... 18
8AAB.................... When the general interest charge applies........................... 18
8AAC.................... Amount of the general interest charge............................... 23
8AAD................... What is the general interest charge rate?......................... 24
8AAE.................... When the charge is due and payable................................. 25
8AAF.................... Notification by Commissioner.......................................... 25
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 28
Division 1—Preliminary 28
8AAZA................. Definitions........................................................................ 28
8AAZB................. Trustee to be treated as separate entity for each capacity... 30
Division 2—Running Balance Accounts (or RBAs) 31
8AAZC................. Establishment of RBAs.................................................... 31
8AAZD................. Allocation of tax debts to RBAs....................................... 31
8AAZF.................. General interest charge on RBA deficit debt..................... 32
8AAZG................. RBA statements................................................................ 32
8AAZH................. Liability for RBA deficit debt........................................... 32
8AAZI................... RBA statement to be evidence.......................................... 33
8AAZJ.................. Evidentiary certificate about RBA transactions etc............ 33
Division 3—Treatment of payments, credits and RBA surpluses 35
8AAZL.................. Amounts covered by this Division................................... 35
8AAZLA............... Method 1—allocating the amount first to an RBA............ 36
8AAZLB............... Method 2—applying the amount first against a non‑RBA tax debt 36
8AAZLC............... RBA surplus and related credits must remain equivalent if one or the other is applied 37
8AAZLD............... Special priority credits...................................................... 37
8AAZLE............... Instructions to Commissioner not binding........................ 38
Division 3A—Refunds of RBA surpluses and credits 39
8AAZLF............... Commissioner must refund RBA surpluses and credits... 39
8AAZLG............... Retaining refunds until information or notification given.. 40
8AAZLGA............ Retaining refunds while Commissioner verifies information 40
8AAZLGB............ Retaining refunds until notification under Division 389 or ascertainment of liability 43
8AAZLH............... How refunds are made...................................................... 45
Division 4—Miscellaneous provisions about tax debts 46
8AAZM................ When payments are treated as received............................. 46
8AAZMA............. Electronic payment of tax debts........................................ 46
8AAZMB.............. Saturdays, Sundays and public holidays........................... 46
8AAZN................. Overpayments made by the Commissioner under taxation laws 47
Part III—Prosecutions and offences 48
Division 1—Preliminary 48
8A......................... Interpretation..................................................................... 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) 64
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. 67
8U......................... Falsifying or concealing identity with intention of deceiving or misleading etc. 68
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 73
8WA...................... Unauthorised requirement etc. that tax file number be quoted 73
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............................ 77
8Z.......................... Evidentiary certificate relating to previous convictions..... 78
Division 3—Prosecution of taxation offences 80
8ZA....................... Prosecution of taxation offences....................................... 80
8ZB....................... Prosecution may be commenced at any time..................... 81
8ZC....................... Place where offence committed......................................... 81
8ZD....................... Conduct by employees or agents of corporations............. 82
8ZE........................ Civil penalty not payable if prosecution instituted............. 82
8ZF........................ Penalties for corporations................................................. 83
8ZG....................... Enforcement of orders for payment.................................. 83
8ZH....................... Penalties not to relieve from tax........................................ 84
Division 4—Prescribed taxation offences 85
8ZJ........................ Prosecution of prescribed taxation offences...................... 85
8ZK....................... Protection of witnesses..................................................... 86
8ZL........................ Averment.......................................................................... 87
8ZM...................... Evidence of authority to institute proceedings................... 87
8ZN....................... Costs................................................................................. 88
Division 5—Service of summons for prescribed taxation offences 89
9............................ Interpretation..................................................................... 89
10.......................... Service of summons by post............................................. 89
11.......................... Notice of conviction in absentia....................................... 90
12.......................... Notice of intention to issue warrant in default of payment 90
13.......................... Limitation of action to enforce payment of fine................. 91
13A....................... Setting aside of conviction or order.................................. 91
13B........................ Proof of service of summons or notice............................. 94
13C........................ Application of other laws.................................................. 94
Division 6—Setting aside etc. of conviction or order on application of Commissioner 95
13CA..................... Setting aside etc. of conviction or order on application of Commissioner 95
Part IIIA—Co‑operation between Commonwealth and State taxation authorities 97
Division 1—Interpretation 97
13D....................... Interpretation..................................................................... 97
Division 2—Trans‑border investigations 99
13E........................ State taxation officers may refer matters to Commissioner for investigation 99
13F........................ Access to documents etc................................................... 99
13G....................... Commissioner may obtain information and evidence...... 100
Division 4—Certification by State taxation officer of copies of, and extracts from, documents 101
13K........................ Certification by State taxation officer of copies of, and extracts from, documents 101
Division 5—Australian Taxation Office may perform functions under State/Territory debits tax laws 103
13L........................ Australian Taxation Office may perform functions under State/Territory debits tax laws 103
Part IVA—Departure from Australia of certain tax debtors 105
Division 1—Interpretation 105
14Q....................... Interpretation................................................................... 105
Division 2—Prohibition and authorisation of departure of certain tax debtors 106
14R........................ Departure from Australia of certain tax debtors prohibited 106
14S........................ Departure prohibition orders........................................... 106
14T........................ Revocation and variation of departure prohibition orders 107
14U....................... Departure authorisation certificates................................. 109
Division 3—Appeals from, and review of, decisions of the Commissioner 111
14V....................... Appeals to courts against making of departure prohibition orders 111
14W....................... Jurisdiction of courts...................................................... 111
14X....................... Orders of court on appeal............................................... 111
14Y....................... Applications for review of certain decisions................... 112
Division 4—Enforcement 113
14Z........................ Powers of authorised officers......................................... 113
14ZA..................... Certain tax debtors to produce authority to depart etc..... 114
Part IVC—Taxation objections, reviews and appeals 115
Division 1—Introduction 115
14ZL...................... Part applies to taxation objections................................... 115
14ZM.................... Division 2—Interpretive................................................. 115
14ZN..................... Division 3—Taxation objections.................................... 115
14ZO..................... Division 4—Tribunal review.......................................... 115
14ZP...................... Division 5—Federal Court appeals................................. 115
Division 2—Interpretive provisions 116
14ZQ..................... General interpretation provisions.................................... 116
14ZR..................... Taxation decisions covered by single notice to be treated as single decision 117
14ZS...................... Ineligible income tax remission decisions....................... 118
Division 3—Taxation objections 119
14ZU..................... How taxation objections are to be made.......................... 119
14ZV..................... Limited objection rights in the case of certain amended taxation decisions 119
14ZVA.................. Limited objection rights because of other objections....... 119
14ZVB.................. Objections relating to excess concessional contributions 120
14ZVC.................. Objections relating to non‑concessional contributions.... 121
14ZW.................... When taxation objections are to be made........................ 122
14ZX..................... Commissioner to consider applications for extension of time 128
14ZY..................... Commissioner to decide taxation objections................... 128
14ZYA.................. Person may require Commissioner to make an objection decision 129
14ZYB.................. Requiring Commissioner to make a private ruling.......... 130
14ZZ...................... Person may seek review of, or appeal against, Commissioner’s decision 130
Division 4—AAT review of objection decisions and extension of time refusal decisions 132
14ZZA................... Modified AAT Act to apply........................................... 132
14ZZB................... Sections 27, 28, 41 and 44A of the AAT Act not to apply to certain decisions 132
14ZZC................... Modification of section 29 of the AAT Act.................... 132
14ZZD................... Modification of section 30 of the AAT Act.................... 133
14ZZE................... Hearings before Tribunal to be held in private if applicant so requests 133
14ZZF................... Modification of section 37 of the AAT Act.................... 133
14ZZG................... Modification of section 38 of the AAT Act.................... 135
14ZZJ.................... Modification of section 43 of the AAT Act.................... 135
14ZZK................... Grounds of objection and burden of proof..................... 136
14ZZL................... Implementation of Tribunal decisions............................. 136
14ZZM.................. Pending review not to affect implementation of taxation decisions 136
Division 5—Court appeals against objection decisions 137
14ZZN................... Time limit for appeals..................................................... 137
14ZZO................... Grounds of objection and burden of proof..................... 137
14ZZP................... Order of court on objection decision............................... 137
14ZZQ................... Implementation of court order in respect of objection decision 137
14ZZR................... Pending appeal not to affect implementation of taxation decisions 138
14ZZS................... Transfer of certain proceedings to Family Court............. 138
Part V—Miscellaneous 141
15.......................... Appearance by Commissioner etc................................... 141
15A....................... Certification by Commissioner of copies of, and extracts from, documents 142
15B........................ Recoverable advances..................................................... 144
15C........................ Recoverable payments.................................................... 145
15D....................... Reports about recoverable advances and recoverable payments 147
16.......................... Payments out of Consolidated Revenue Fund................ 149
16A....................... Regulations may provide for methods of payment of tax liabilities etc. 150
16B........................ Certain liabilities to be reduced to nearest multiple of 5 cents.. 151
17.......................... Powers of taxation officers in relation to references to currency etc. 151
17A....................... Powers of Federal Court and Federal Circuit Court in respect of taxation matters 152
18.......................... Regulations..................................................................... 153
Schedule 1—Collection and recovery of income tax and other liabilities 154
Chapter 2—Collection, recovery and administration of income tax 154
Part 2‑1—Introduction to the Pay as you go (PAYG) system 154
Division 6—Guide to Parts 2‑5 and 2‑10 154
6‑1......................... What Parts 2‑5 and 2‑10 are about.................................. 154
6‑5......................... The Pay as you go (PAYG) system............................... 154
6‑10....................... How the amounts collected are dealt with....................... 155
Part 2‑5—Pay as you go (PAYG) withholding 156
Division 10—Guide to Part 2‑5 156
10‑1....................... What this Part is about.................................................... 156
10‑5....................... Summary of withholding payments................................ 156
Division 11—Preliminary matters 159
11‑1....................... Object of this Part........................................................... 159
11‑5....................... Constructive payment..................................................... 159
Division 12—Payments from which amounts must be withheld 161
Subdivision 12‑A—General rules 161
12‑1....................... General exceptions.......................................................... 161
12‑5....................... What to do if more than one provision requires a withholding 163
12‑7....................... Division does not apply to alienated personal services payments 164
12‑10..................... Division does not apply to non‑cash benefits................. 165
12‑20..................... Application of Division and regulations to non‑share dividends 165
Subdivision 12‑B—Payments for work and services 165
12‑35..................... Payment to employee...................................................... 166
12‑40..................... Payment to company director.......................................... 166
12‑45..................... Payment to office holder................................................. 166
12‑47..................... Payment to religious practitioners................................... 167
12‑50..................... Return to work payment................................................. 167
12‑55..................... Voluntary agreement to withhold.................................... 167
12‑60..................... Payment under labour hire arrangement, or specified by regulations 168
Subdivision 12‑C—Payments for retirement or because of termination of employment 169
12‑80..................... Superannuation income streams and annuities................ 169
12‑85..................... Superannuation lump sums and payments for termination of employment 169
12‑90..................... Unused leave payments.................................................. 170
Subdivision 12‑D—Benefit and compensation payments 170
12‑110................... Social Security or other benefit payment......................... 170
12‑115................... Commonwealth education or training payment............... 171
12‑120................... Compensation, sickness or accident payment................. 171
Subdivision 12‑E—Payments where TFN or ABN not quoted 171
Payment in respect of investment 172
12‑140................... Recipient does not quote tax file number........................ 172
12‑145................... Investor becoming presently entitled to income of a unit trust 173
12‑150................... Limited application of section 12‑140 to payment under financial arrangement 173
12‑155................... When investor may quote ABN as alternative................ 174
12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying 175
12‑165................... Exception for fully franked dividend.............................. 175
12‑170................... Exception for payments below thresholds set by regulations 175
Payment of income of closely held trust where TFN not quoted 176
12‑175................... Trustee distributes income of closely held trust.............. 176
12‑180................... Beneficiary becomes presently entitled to income of closely held trust 178
12‑185................... Exception for payments below thresholds set by regulations 179
Payment for a supply 179
12‑190................... Recipient does not quote ABN....................................... 179
Subdivision 12‑F—Dividend, interest and royalty payments 182
Dividends 183
12‑210................... Dividend payment to overseas person............................ 183
12‑215................... Dividend payment received for foreign resident............. 184
12‑220................... Application to part of a dividend..................................... 184
12‑225................... Application to distribution by a liquidator or other person 184
Interest 185
12‑245................... Interest payment to overseas person............................... 185
12‑250................... Interest payment received for foreign resident................ 185
12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 186
12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment 186
Royalties 187
12‑280................... Royalty payment to overseas person............................... 187
12‑285................... Royalty payment received for foreign resident................ 187
General 188
12‑300................... Limits on amount withheld under this Subdivision......... 188
Subdivision 12‑FA—Departing Australia superannuation payments 188
12‑305................... Departing Australia superannuation payment................. 189
12‑310................... Limits on amount withheld under this Subdivision......... 189
Subdivision 12‑FAA—Excess untaxed roll‑over amount 189
12‑312................... Untaxed roll‑over superannuation benefits..................... 189
12‑313................... Limits on amount withheld under this Subdivision......... 189
Subdivision 12‑FB—Payments to foreign residents etc. 190
12‑315................... Payment to foreign resident etc....................................... 190
12‑317................... Payment received for foreign resident etc....................... 191
12‑319................... Exemptions from withholding obligations under this Subdivision 193
Subdivision 12‑FC—Seasonal Labour Mobility Program 194
12‑319A................ Payment to employee...................................................... 194
Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources 194
Mining on Aboriginal land 195
12‑320................... Mining payment.............................................................. 195
Natural resources 195
12‑325................... Natural resource payment............................................... 195
12‑330................... Payer must ask Commissioner how much to withhold... 196
12‑335................... Commissioner may exempt from section 12‑330, subject to conditions 197
Subdivision 12‑H—Distributions of withholding MIT income 198
Guide to Subdivision 12‑H 198
12‑375................... What this Subdivision is about....................................... 198
Operative provisions 199
12‑383................... Meaning of withholding MIT.......................................... 199
12‑385................... Withholding by withholding MITs................................. 200
12‑390................... Withholding by custodians and other entities.................. 201
12‑395................... Requirement to give notice or make information available 205
12‑405................... Meaning of fund payment—general case........................ 207
12‑410................... Entity to whom payment is made.................................... 209
12‑415................... Failure to give notice or make information available: administrative penalty 210
12‑420................... Agency rules................................................................... 210
12‑425................... Meaning of clean building managed investment trust.... 211
12‑430................... Meaning of clean building.............................................. 211
Subdivision 12‑J—FHSS released amounts 213
12‑460................... FHSS released amounts.................................................. 213
Division 12A—Distributions by AMITs (including deemed payments) 214
Guide to Division 12A 214
12A‑1.................... What this Division is about............................................. 214
Subdivision 12A‑A—Distributions by AMITs relating to dividend, interest and royalties 215
Guide to Subdivision 12A‑A 215
12A‑5.................... What this Subdivision is about....................................... 215
Operative provisions 215
12A‑10.................. Deemed payments—no obligation to withhold under Subdivision 12‑F (dividend, interest and royalty payments)....................................................................... 215
12A‑15.................. Dividend, interest or royalty payments relating to AMIT—requirement to give notice or make information available.......................................................................... 216
12A‑20.................. Failure to give notice or make information available under section 12A‑15: administrative penalty 219
12A‑25.................. Meaning of AMIT DIR payment..................................... 219
12A‑30.................. Meaning of AMIT dividend payment.............................. 220
12A‑35.................. Meaning of AMIT interest payment................................ 221
12A‑40.................. Meaning of AMIT royalty payment................................. 222
Subdivision 12A‑B—Distributions by AMITs relating to Subdivision 12‑H fund payments 223
Guide to Subdivision 12A‑B 223
12A‑100................ What this Subdivision is about....................................... 223
Operative provisions 223
12A‑105................ Deemed payments—no obligation to withhold under Subdivision 12‑H 223
12A‑110................ Meaning of fund payment—AMITs............................... 224
Subdivision 12A‑C—Deemed payments by AMITs etc. 227
Guide to Subdivision 12A‑C 227
12A‑200................ What this Subdivision is about....................................... 227
Operative provisions 228
12A‑205................ Issue of AMMA statement etc. deemed to be payment... 228
12A‑210................ Post‑AMMA actual payment and pre‑AMMA actual payment in respect of deemed payment 230
12A‑215................ AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc. 231
12A‑220................ Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc. 233
Division 13—Alienated personal services payments 236
13‑1....................... Object of this Division.................................................... 236
13‑5....................... Payment to the Commissioner in respect of alienated personal services payments 236
13‑10..................... Alienated personal services payments............................. 239
13‑15..................... Personal services payment remitters............................... 240
13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01 241
Division 14—Benefits, gains and taxable supplies for which amounts must be paid to the Commissioner 242
Subdivision 14‑A—Non‑cash benefits 242
14‑1....................... Object of this Subdivision.............................................. 242
14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding..................................................................... 242
14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit 243
14‑15..................... Payer can recover amount paid to the Commissioner...... 244
Subdivision 14‑B—Accruing gains 244
14‑50..................... Object of this Subdivision.............................................. 244
14‑55..................... Liability for TFN withholding tax................................... 245
14‑60..................... Investment body may recover TFN withholding tax from investor 246
14‑65..................... Application of rules in Division 18................................. 246
14‑75..................... Overpayment of TFN withholding tax............................ 247
14‑85..................... Other laws do not exempt from TFN withholding tax.... 247
Subdivision 14‑C—Shares and rights under employee share schemes 248
14‑155................... Liability for TFN withholding tax (ESS)........................ 248
14‑160................... Employer may give individual tax file numbers to provider 249
14‑165................... Provider may recover TFN withholding tax (ESS) from individual 249
14‑170................... Application of rules in Division 18................................. 250
14‑175................... Overpayment of TFN withholding tax (ESS)................. 250
14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997 250
Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property 251
14‑200................... Certain acquisitions of taxable Australian property from foreign residents 251
14‑205................... Effect of look‑through earnout rights.............................. 252
14‑210................... Whether an entity is a relevant foreign resident............... 253
14‑215................... Excluded transactions..................................................... 255
14‑220................... Commissioner clearance certificates................................ 257
14‑225................... Entity declarations........................................................... 257
14‑230................... Administrative penalties for false or misleading declarations 258
14‑235................... Varying amounts to be paid to the Commissioner.......... 259
Subdivision 14‑E—GST payable on taxable supplies of certain real property 260
14‑250................... Recipients of certain taxable supplies of real property must pay amounts to Commissioner 261
14‑255................... Notification by suppliers of residential premises etc....... 263
Division 15—Working out the amount to withhold 266
Guide to Division 15 266
15‑1....................... What this Division is about............................................. 266
Subdivision 15‑A—Working out how much to withhold 266
15‑10..................... How much to withhold................................................... 267
15‑15..................... Variation of amounts required to be withheld................. 267
Subdivision 15‑B—Withholding schedules and regulations 268
15‑25..................... Commissioner’s power to make withholding schedules. 268
15‑30..................... Matters to be considered when making withholding schedules 269
15‑35..................... Regulations about withholding....................................... 270
Subdivision 15‑C—Declarations 271
15‑50..................... Declarations.................................................................... 271
Division 16—Payer’s obligations and rights 273
Guide to Division 16 273
16‑1....................... What this Division is about............................................. 273
Subdivision 16‑A—To withhold 273
When to withhold 274
16‑5....................... When to withhold an amount.......................................... 274
16‑7....................... Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12 274
16‑20..................... Payer discharged from liability to recipient for amount withheld 275
Penalties for not withholding 275
16‑25..................... Failure to withhold: offence............................................ 275
16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 276
16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty............................ 277
16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment.............................................. 278
16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.......................................................... 278
Subdivision 16‑B—To pay withheld amounts to the Commissioner 279
When and how to pay amounts to the Commissioner 279
16‑70..................... Entity to pay amounts to Commissioner......................... 279
16‑75..................... When amounts must be paid to Commissioner............... 280
16‑80..................... Penalty for failure to pay within time.............................. 282
16‑85..................... How amounts are to be paid........................................... 282
Who is a large, medium or small withholder 283
16‑95..................... Meaning of large withholder.......................................... 283
16‑100................... Meaning of medium withholder...................................... 284
16‑105................... Meaning of small withholder.......................................... 284
16‑110................... Commissioner may vary withholder’s status downwards 284
16‑115................... Commissioner may vary withholder’s status upwards... 285
Subdivision 16‑BA—To be registered 286
Registration of withholders 287
16‑140................... Withholders must be registered....................................... 287
16‑141................... Registration and cancellation........................................... 287
Branch registration 288
16‑142................... Branches may be registered............................................ 288
16‑143................... Separate amounts for entities and branches..................... 288
16‑144................... Cancellation of branch registration.................................. 289
16‑145................... Effect on branches of cancelling the entity’s registration 290
Registration of employers of working holiday makers 290
16‑146................... Employers of working holiday makers must be registered 290
16‑147................... Registering employers of working holiday makers......... 291
16‑148................... Cancelling the registration of employers of working holiday makers 292
Subdivision 16‑C—To provide information 294
To the Commissioner 295
16‑150................... Commissioner must be notified of amounts.................... 295
16‑152................... Annual reports—Withholding payments covered by section 12‑175 296
16‑153................... Annual reports—other payments.................................... 297
To recipients of withholding payments 299
16‑155................... Annual payment summary.............................................. 299
16‑156................... Annual payment summary for sections 12‑175 and 12‑180 301
16‑157................... Payment summary for Subdivision 12‑H....................... 302
16‑160................... Part‑year payment summary........................................... 303
16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment 304
16‑166................... Payment summary for a departing Australia superannuation payment 305
16‑167................... Payment summary for payment to recipient who does not quote ABN 305
16‑170................... Form and content of payment summary.......................... 305
16‑175................... Penalty for not providing payment summary.................. 307
16‑180................... Commissioner may exempt entity from giving payment summary 307
16‑182................... Definition of reportable employer superannuation contribution 308
Subdivision 16‑D—Additional rights and obligations of entity that makes a payment 309
16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes 309
Division 18—Recipient’s entitlements and obligations 311
Subdivision 18‑A—Crediting withheld amounts 311
Guide to Subdivision 18‑A 311
18‑1....................... What this Subdivision is about....................................... 311
General exception 313
18‑5....................... No credit for refunded amount........................................ 313
Entitlement to credits: income tax liability 313
18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 313
18‑15..................... Tax credit for recipient of withholding payments............ 314
18‑20..................... Tax credit where recipient is a partnership...................... 314
18‑25..................... Tax credit where recipient is a trust................................. 315
18‑27..................... Tax credit for alienated personal services payments........ 317
Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program 317
18‑30..................... Credit: dividend, interest or royalty................................. 317
18‑32..................... Credit: amount attributable to fund payment................... 318
18‑33..................... Credit: Seasonal Labour Mobility Program.................... 319
18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge 319
18‑40..................... Credit: liability under Part 4‑25....................................... 321
Entitlement to credit: departing Australia superannuation payment 323
18‑42..................... Credit—departing Australia superannuation payment..... 323
Entitlement to credit: mining payment 324
18‑45..................... Credit—mining payment................................................. 324
Entitlement to credit: Petroleum resource rent tax 325
18‑55..................... Credit—Natural resource payments................................ 325
Entitlement to credit: taxable supply of real property 325
18‑60..................... Credit—payment relating to taxable supply of real property 325
Subdivision 18‑B—Refund of certain withheld amounts 326
18‑65..................... Refund of withheld amounts by the payer to the recipient 326
18‑70..................... Refund of withheld amounts by the Commissioner to the recipient 329
18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment 331
18‑85..................... Refund by Commissioner of amount withheld from payment in respect of taxable supply of real property........................................................................................ 332
Subdivision 18‑C—Recipient’s obligations 332
18‑100................... Obligation to keep payment summary............................. 332
Subdivision 18‑D—Directors etc. of non‑complying companies 333
Object of Subdivision 334
18‑120................... Object of Subdivision..................................................... 334
PAYG withholding non‑compliance tax 334
18‑125................... Directors of non‑complying companies.......................... 334
18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances 336
18‑135................... Associates of directors of non‑complying companies..... 337
18‑140................... Notices............................................................................ 341
18‑145................... When PAYG withholding non‑compliance tax must be paid.. 342
18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax 343
18‑155................... Validity of decisions and evidence.................................. 343
18‑160................... Rights of indemnity and contribution.............................. 344
Credits for later compliance 345
18‑165................... Credits for later compliance—scope............................... 345
18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances 345
18‑175................... Credits for later compliance—Commissioner may give notice 347
18‑180................... Effect of earlier credits.................................................... 348
Other provisions 349
18‑185................... When Commissioner may give notice............................. 349
18‑190................... Review of decisions........................................................ 350
Division 20—Other matters 351
Subdivision 20‑B—Offences 351
20‑35..................... Offences......................................................................... 351
20‑40..................... Joining of charges........................................................... 352
20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company 353
Subdivision 20‑D—Review of decisions 354
20‑80..................... Reviewable decisions...................................................... 354
Division 21—Entitlements relating to insolvent ADIs and general insurers 356
Guide to Division 21 356
21‑1....................... What this Division is about............................................. 356
Subdivision 21‑A—Treatment of some payments by APRA 356
21‑5....................... APRA treated like ADI or general insurance company.. 356
Part 2‑10—Pay as you go (PAYG) instalments 358
Division 45—Instalment payments 358
Guide to Division 45 359
45‑1....................... What this Division is about............................................. 359
Subdivision 45‑A—Basic rules 360
45‑5....................... Object of this Part........................................................... 360
45‑10..................... Application of Part.......................................................... 362
45‑15..................... Liability for instalments.................................................. 362
45‑20..................... Information to be given to the Commissioner by certain payers 363
45‑25..................... Penalty for failure to notify Commissioner..................... 363
45‑30..................... Credit for instalments payable......................................... 364
Subdivision 45‑B—When instalments are due 365
45‑50..................... Liability to pay instalments............................................. 365
45‑60..................... Meaning of instalment quarter....................................... 366
45‑61..................... When quarterly instalments are due—payers of quarterly instalments 366
45‑65..................... Meaning of instalment month......................................... 367
45‑67..................... When monthly instalments are due—payers of monthly instalments 368
45‑70..................... When annual instalments are due.................................... 368
45‑72..................... Means of payment of instalment..................................... 369
45‑75..................... Instalments recoverable in same way as income tax........ 369
45‑80..................... General interest charge on late payment.......................... 369
45‑90..................... Commissioner may withdraw instalment rate................. 369
Subdivision 45‑C—Working out instalment amounts 370
45‑110................... How to work out amount of quarterly instalment on instalment income basis 370
45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax 371
45‑114................... How to work out amount of monthly instalment............ 372
45‑115................... How to work out amount of annual instalment............... 373
45‑120................... Meaning of instalment income........................................ 374
Subdivision 45‑D—Quarterly payers 378
45‑125................... Quarterly payer who pays instalments on the basis of instalment income 378
45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax 380
45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 382
45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 383
Subdivision 45‑DA—Monthly payers 384
45‑136................... Monthly payer................................................................ 384
45‑138................... Monthly payer requirement............................................. 385
Subdivision 45‑E—Annual payers 387
When you start and stop being an annual payer 387
45‑140................... Choosing to pay annual instalments................................ 387
45‑145................... Meaning of instalment group......................................... 389
45‑150................... Entity stops being annual payer if involved with GST registration or instalment group 389
45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly 390
45‑160................... Head company of a consolidated group stops being annual payer 391
Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income 392
45‑200................... Application..................................................................... 392
45‑205................... Choosing a varied instalment rate................................... 392
45‑210................... Notifying Commissioner of varied instalment rate.......... 393
45‑215................... Credit on using varied rate in certain cases..................... 393
Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low 395
45‑225................... Effect of Subdivision in relation to monthly payers........ 395
45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate 395
45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark
tax................................................................................... 397
45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment 406
45‑235................... Liability to GIC on shortfall in annual instalment........... 407
45‑240................... Commissioner may remit general interest charge............ 409
Subdivision 45‑H—Partnership income 409
45‑260................... Instalment income for a period in which you are in a partnership 409
Subdivision 45‑I—Trust income included in instalment income of beneficiary 410
45‑280................... Instalment income for a period in which you are a beneficiary of a trust 410
45‑285................... Instalment income includes distributions by certain resident unit trusts 413
45‑286................... Instalment income includes distributions by certain managed investment trusts 414
45‑287................... When trusts are disqualified due to concentrated ownership 415
45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled 417
45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income 417
Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax 418
45‑320................... Working out instalment rate............................................ 418
45‑325................... Working out your notional tax........................................ 419
45‑330................... Working out your adjusted taxable income.................... 420
45‑335................... Working out your adjusted withholding income............. 423
45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income 423
Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax 426
45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax 426
45‑360................... How Commissioner works out benchmark instalment rate 426
45‑365................... Working out your benchmark tax................................... 427
45‑370................... Working out your adjusted assessed taxable income for the variation year 428
45‑375................... Adjusted assessed tax on adjusted assessed taxable income 429
Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax 431
45‑400................... Working out amount of instalment—payers of 4 quarterly instalments 431
45‑402................... Working out amount of instalment—payers of 2 quarterly instalments 433
45‑405................... Working out your GDP‑adjusted notional tax................ 435
Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax 436
45‑410................... Working out amount of instalment—payers of 4 quarterly instalments 437
45‑412................... Working out amount of instalment—payers of 2 quarterly instalments 438
45‑415................... Estimating your benchmark tax....................................... 440
45‑420................... Credit in certain cases where amount of instalment is nil 441
Subdivision 45‑N—How this Part applies to the trustee of a trust 442
Trustees to whom this Part applies 442
45‑450................... Trustees to whom a single instalment rate is given......... 442
45‑455................... Trustees to whom several instalment rates are given....... 443
45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 444
45‑465................... Meaning of instalment income........................................ 444
45‑468................... Multi‑rate trustee may pay quarterly instalments............. 445
How Commissioner works out instalment rate and notional tax for a multi‑rate trustee 445
45‑470................... Working out instalment rate............................................ 445
45‑473................... Commissioner must notify you of notional tax............... 446
45‑475................... Working out your notional tax........................................ 446
45‑480................... Working out your adjusted taxable income.................... 447
45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share 447
45‑485................... Working out your adjusted withholding income............. 448
How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee 449
45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax 449
45‑530................... How Commissioner works out benchmark instalment rate 449
45‑535................... Working out your benchmark tax................................... 450
Subdivision 45‑P—Anti‑avoidance rules 450
45‑595................... Object of this Subdivision.............................................. 451
45‑597................... Effect of Subdivision in relation to instalment months.... 451
45‑600................... General interest charge on tax benefit relating to instalments 451
45‑605................... When do you get a tax benefit from a scheme?............... 453
45‑610................... What is your tax position for an income year?................ 454
45‑615................... What is your hypothetical tax position for an income year? 456
45‑620................... Amount on which GIC is payable, and period for which it is payable 456
45‑625................... Credit if you also got a tax detriment from the scheme... 457
45‑630................... When do you get a tax detriment from a scheme?........... 458
45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides 459
45‑640................... Commissioner may remit general interest charge in special cases 461
Subdivision 45‑Q—General rules for consolidated groups 461
Guide to Subdivision 45‑Q 461
45‑700................... What this Subdivision is about....................................... 461
Application of Subdivision 462
45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers 462
45‑705................... Application of Subdivision to head company................. 463
Usual operation of this Part for consolidated group members 467
45‑710................... Single entity rule............................................................. 467
45‑715................... When instalments are due—modification of section 45‑61 468
45‑720................... Head company cannot be an annual payer—modification of section 45‑140 468
Membership changes 468
45‑740................... Change of head company................................................ 468
45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group) 471
45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group) 472
45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax 474
Subdivision 45‑R—Special rules for consolidated groups 476
Guide to Subdivision 45‑R 476
45‑850................... What this Subdivision is about....................................... 476
Operative provisions 477
45‑855................... Section 701‑1 disregarded for certain purposes.............. 477
45‑860................... Member having a different instalment period.................. 477
45‑865................... Credit rule....................................................................... 478
45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment 480
45‑875................... Other rules about the general interest charge................... 483
45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group 484
45‑885................... Early application of Subdivision 45‑Q to the head company of a new group 486
Subdivision 45‑S—MEC groups 487
Guide to Subdivision 45‑S 487
45‑900................... What this Subdivision is about....................................... 487
Preliminary 488
45‑905................... Objects of Subdivision................................................... 488
General modification rules 489
45‑910................... Extended operation of Part to cover MEC groups.......... 489
Extended operation of Subdivision 45‑Q 490
45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups 490
45‑915................... Application of Subdivision 45‑Q to provisional head company 490
45‑917................... Assumption for applying section 45‑710 (single entity rule) 494
45‑920................... Change of provisional head company............................. 494
45‑922................... Life insurance company.................................................. 497
Extended operation of Subdivision 45‑R 498
45‑925................... Additional modifications of sections 45‑855 and 45‑860 498
45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision 498
45‑935................... Additional modifications of section 45‑885.................... 499
Part 2‑15—Returns and assessments 500
Division 70—Tax receipts 500
Guide to Division 70 500
70‑1....................... What this Division is about............................................. 500
Subdivision 70‑A—Tax receipts 500
70‑5....................... Tax receipt to be provided to certain individual taxpayers 501
Part 2‑30—Collecting Medicare levy with income tax 503
Division 90—Medicare levy and Medicare levy surcharge 503
Subdivision 90‑A—Treatment like income tax 503
90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 503
Part 2‑35—Excess superannuation contributions 504
Division 95—Excess concessional contributions charge 504
Guide to Division 95 504
95‑1....................... What this Division is about............................................. 504
Subdivision 95‑A—Object of Division 504
95‑5....................... Object of Division.......................................................... 504
Subdivision 95‑B—Excess concessional contributions charge 505
95‑10..................... Liability to excess concessional contributions charge..... 505
95‑15..................... Amount of excess concessional contributions charge..... 506
95‑20..................... When excess concessional contributions charge is due and payable 506
95‑25..................... General interest charge.................................................... 507
Division 97—Excess contributions determinations 508
Subdivision 97‑A—Excess concessional contributions determinations 508
Guide to Subdivision 97‑A 508
97‑1....................... What this Subdivision is about....................................... 508
Operative provisions 508
97‑5....................... Determination of excess concessional contributions and charge 508
97‑10..................... Review............................................................................ 509
Subdivision 97‑B—Excess non‑concessional contributions determinations 509
Guide to Subdivision 97‑B 509
97‑20..................... What this Subdivision is about....................................... 509
Operative provisions 510
97‑25..................... Excess non‑concessional contributions determinations... 510
97‑30..................... Associated earnings........................................................ 510
97‑35..................... Review............................................................................ 511
An Act to provide for the administration of certain Acts relating to Taxation, and for purposes connected therewith
Part I—Preliminary
1 Short title
This Act may be cited as the Taxation Administration Act 1953.
2 Interpretation
(1) In this Act (except Schedule 1), unless the contrary intention appears:
approved form has the meaning given by Schedule 1.
ASIO means the Australian Security Intelligence Organisation.
assessable amount has the meaning given by subsection 155‑5(2) in Schedule 1.
Australia, when used in a geographical sense, has the same meaning as in the Income Tax Assessment Act 1997.
Commissioner means the Commissioner of Taxation.
Deputy Commissioner means any Deputy Commissioner of Taxation.
Director‑General of Security means the Director‑General of Security holding office under the Australian Security Intelligence Organisation Act 1979.
engage in conduct means:
(a) do an act; or
(b) omit to perform an act.
excess concessional contributions determination has the same meaning as in subsection 995‑1(1) of the Income Tax Assessment Act 1997.
excise law has the meaning given by the Income Tax Assessment Act 1997.
exempt Australian government agency has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
failure to notify penalty means the penalty worked out under Division 2 of Part IIA.
fuel tax law has the meaning given by the Fuel Tax Act 2006.
general interest charge means the charge worked out under Part IIA.
Immigration Department has the meaning given by the Income Tax Assessment Act 1997.
Immigration Secretary has the meaning given by the Income Tax Assessment Act 1997.
indirect tax law has the meaning given by the Income Tax Assessment Act 1997.
ineligible income tax remission decision has the meaning given by section 14ZS.
late reconciliation statement penalty means the penalty worked out under Division 3 of Part IIA.
migration officer means:
(a) the Immigration Secretary; or
(b) an employee of the Immigration Department.
objection decision has the meaning given by subsection 14ZY(2).
officer means a person appointed or engaged under the Public Service Act 1999.
private indirect tax ruling means a private ruling, to the extent that it relates to an indirect tax law (other than the fuel tax law).
private ruling has the meaning given by section 359‑5 in Schedule 1.
registered tax agent or BAS agent has the same meaning as in the Tax Agent Services Act 2009.
Second Commissioner means a Second Commissioner of Taxation.
taxation law has the meaning given by the Income Tax Assessment Act 1997.
Note: See also subsection (2).
tax liability means a liability to the Commonwealth arising under, or by virtue of, a taxation law.
Tribunal means the Administrative Appeals Tribunal.
(2) Despite the definition of taxation law in subsection (1), an Excise Act (as defined in subsection 4(1) of the Excise Act 1901) is not a taxation law for the purposes of Part III of this Act.
2A Application of the Criminal Code
Chapter 2 of the Criminal Code applies to all offences against this Act.
Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
2B Act binds the Crown
This Act binds the Crown in each of its capacities. However, it does not make the Crown liable to a pecuniary penalty or to be prosecuted for an offence.
3 Application
This Act extends to every external Territory referred to in the definition of Australia.
3AA Schedule 1
(1) Schedule 1 has effect.
Definitions in Schedule 1 do not apply to rest of Act
(1A) So far as a provision in Schedule 1 gives an expression a particular meaning, the provision does not also have effect for the purposes of this Act (other than Schedule 1), except as provided in this Act (other than Schedule 1).
Application of interpretation provisions of Income Tax Assessment Act 1997
(2) An expression has the same meaning in Schedule 1 as in the Income Tax Assessment Act 1997.
(3) Division 950 of the Income Tax Assessment Act 1997 (which contains rules for interpreting that Act) applies to Schedule 1 to this Act as if the provisions in that Schedule were provisions of that Act.
Part IA—Administration
3A General administration of Act
The Commissioner has the general administration of this Act.
Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1.
3B Annual report
(1) The Commissioner shall, as soon as practicable after 30 June in each year, prepare and furnish to the Minister a report on the working of this Act.
(1AA) A report under subsection (1) in relation to a year ending on 30 June shall:
(b) set out:
(i) the number of occasions (if any) during the year on which a request was made to disclose information under subsection 355‑55(1) in Schedule 1 (about disclosures to Ministers); and
(ii) the number of occasions (if any) during the year on which information was disclosed under that subsection; and
(iii) the Ministers to whom the information was disclosed; and
(c) set out:
(i) the number of occasions (if any) during the year on which a request was made to disclose information under subsection 355‑70(1) in Schedule 1 (about disclosures for law enforcement and related purposes); and
(ii) the number of occasions (if any) during the year on which information was disclosed under that subsection; and
(iii) the types of entities and the names of the courts and tribunals to which the information was disclosed; and
(iv) if the information was disclosed under table item 1 or 6 in subsection 355‑70(1)—the general categories of offences in relation to which the information was disclosed; and
(d) set out the number (if any) of *taxation officers found guilty of the offence in section 355‑25 in Schedule 1 (about disclosure of protected information); and
(e) set out information on the exercise during the year of the Commissioner’s powers under Subdivision 370‑A in Schedule 1 (Commissioner’s remedial power).
(1C) 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 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 in the approved form 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.
3F Reporting of information about junior minerals exploration incentive offset
(1) This section applies if the Commissioner makes a determination under section 418‑101 of the Income Tax Assessment Act 1997 allocating exploration credits to an entity for an income year.
(2) The Commissioner must, as soon as practicable after making the determination, make publicly available:
(a) the ABN and name of the entity; and
(b) the amount of the entity’s exploration credits allocation for the income year.
(3) 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.
Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation
4 Commissioner and Second Commissioners of Taxation
There shall be a Commissioner of Taxation and 3 Second Commissioners of Taxation, who shall be appointed by the Governor‑General.
4A Statutory Agency etc. for purposes of Public Service Act
(1) The staff necessary to assist the Commissioner are to be persons engaged under the Public Service Act 1999.
(2) For the purposes of the Public Service Act 1999:
(a) the Commissioner and the APS employees assisting the Commissioner together constitute a Statutory Agency; and
(b) the Commissioner is the Head of that Statutory Agency.
5 Tenure of Commissioner and Second Commissioners
(1) The Commissioner of Taxation and each Second Commissioner of Taxation shall be appointed for terms of 7 years respectively and shall be eligible for re‑appointment.
(3) The Commissioner of Taxation and the Second Commissioners of Taxation are not subject to the Public Service Act 1999.
5A Remuneration and allowances of Commissioner and Second Commissioners
(1) The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such remuneration as is determined by the Remuneration Tribunal but, if no determination of that remuneration by the Tribunal is in operation, they shall be paid remuneration at the respective rates that were applicable immediately before the commencement of this section.
(2) The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such allowances as are prescribed.
(3) This section has effect subject to the Remuneration Tribunal Act 1973.
6 Leave of absence
(1) The Commissioner and a Second Commissioner have such recreation leave entitlements as are determined by the Remuneration Tribunal.
(2) The Minister may grant the Commissioner and a Second Commissioner leave of absence, other than recreation leave, on such terms and conditions as to remuneration or otherwise as the Minister determines.
6A Resignation
The Commissioner or a Second Commissioner may resign his or her office by writing signed by the Commissioner or Second Commissioner, as the case may be, and delivered to the Governor‑General.
6B Acting appointments
(1) The Minister may appoint a person to act in the office of Commissioner of Taxation:
(a) during a vacancy in that office; or
(b) during any period, or during all periods, when the person holding that office is absent from duty or from Australia or is, for any other reason, unable to perform the functions of that office.
Note: For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901.
(2) The Minister may appoint a person to act in an office of Second Commissioner of Taxation:
(a) during a vacancy in that office; or
(b) during any period, or during all periods, when the person holding the office of Second Commissioner of Taxation is absent from duty or from Australia, is acting in the office of Commissioner of Taxation or is, for any other reason, unable to perform the functions of the office of Second Commissioner of Taxation.
Note: For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901.
(6) While a person is acting in the office of Commissioner of Taxation, the person has and may exercise all the powers, and shall perform all the functions, of the Commissioner under this Act or any other law.
(6A) For the purposes of subsection (6), the Commissioner’s powers and functions include powers and functions given to the Commissioner in his or her capacity as Registrar of the Australian Business Register.
(7) While a person is acting in an office of Second Commissioner of Taxation, the person has and may exercise all the powers, and shall perform all the functions, of the Second Commissioner under this Act or any other law.
6C Suspension and removal from office of Commissioner or Second Commissioner
(1) The Governor‑General may remove the Commissioner or a Second Commissioner from office on an address praying for the removal of the Commissioner or the Second Commissioner, as the case may be, on the ground of proved misbehaviour or physical or mental incapacity being presented to the Governor‑General by each House of the Parliament in the same session of the Parliament.
(2) The Governor‑General may suspend the Commissioner or a Second Commissioner from office on the ground of misbehaviour or physical or mental incapacity.
(3) Where the Governor‑General suspends the Commissioner or a Second Commissioner, the Minister shall cause a statement of the grounds of the suspension to be laid before each House of the Parliament within 7 sitting days of that House after the suspension.
(4) If, at the expiration of 15 sitting days of a House of the Parliament after the day on which the statement was laid before that House, an address under subsection (1) has not been presented to the Governor‑General by each House of the Parliament, the suspension terminates.
(5) The suspension of the Commissioner or a Second Commissioner from office under this section does not affect any entitlement of the Commissioner or Second Commissioner, as the case may be, to be paid remuneration and allowances.
(6) If:
(a) the Commissioner or a Second Commissioner becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his or her creditors or makes an assignment of his or her remuneration for their benefit;
(b) the Commissioner or a Second Commissioner engages, except with the approval of the Minister, in paid employment outside the duties of the office of Commissioner or Second Commissioner, as the case may be; or
(c) the Commissioner or a Second Commissioner is absent from duty, except on leave of absence, for 14 consecutive days or 28 days in any 12 months;
the Governor‑General shall remove the Commissioner or Second Commissioner, as the case may be, from office.
(7) The Governor‑General may, with the consent of the Commissioner or a Second Commissioner, retire the Commissioner or Second Commissioner, as the case may be, from office on the ground of physical or mental incapacity.
(8) The Commissioner or a Second Commissioner shall not be suspended, removed or retired from office except as provided by this section.
6D Powers of Second Commissioner
(1) Subject to subsection (2) and to the regulations, a Second Commissioner has all the powers, and may perform all the functions, of the Commissioner under a taxation law.
(2) Subsection (1) does not apply in relation to:
(a) section 8 of this Act; or
(b) a provision of a taxation law that:
(i) provides that the Commissioner has the general administration of the taxation law; or
(ii) requires the Commissioner to furnish to the Minister a report on the working of the taxation law during any period.
(3) When a power or function of the Commissioner under a taxation law is exercised or performed by a Second Commissioner, the power or function shall, for the purposes of the taxation law, be deemed to have been exercised or performed by the Commissioner.
(4) The exercise of a power, or the performance of a function, of the Commissioner under a taxation law by a Second Commissioner does not prevent the exercise of the power, or the performance of the function, by the Commissioner.
7 Deputy Commissioners of Taxation
There shall be such Deputy Commissioners of Taxation as are required.
8 Delegation
(1) The Commissioner may, either generally or as otherwise provided by the instrument of delegation, by writing signed by the Commissioner, delegate to a Deputy Commissioner or any other person all or any of the Commissioner’s powers or functions under a taxation law or any other law of the Commonwealth or a Territory, other than this power of delegation.
(1A) For the purposes of this section, the Commissioner’s powers and functions include powers and functions given to the Commissioner in his or her capacity as Registrar of the Australian Business Register.
(2) Subject to subsection (5), a power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of the taxation law or the other law, as the case may be, be deemed to have been exercised or performed by the Commissioner.
(4) A delegation under this section does not prevent the exercise of a power or the performance of a function by the Commissioner.
(5) A delegation under this section may be made subject to a power of review and alteration by the Commissioner, within a period specified in the instrument of delegation, of acts done in pursuance of the delegation.
(6) A delegation under this section continues in force notwithstanding a change in the occupancy of, or a vacancy in, the office of Commissioner, but, for the purposes of the application of subsection 33(3) of the Acts Interpretation Act 1901 to a delegation under this section, nothing in any law shall be taken to preclude the revocation or variation of the delegation by the same or a subsequent holder of that office.
Part IIA—The general interest charge
8AAA Overview
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 | |
| 15B | 294‑250 | Income Tax Assessment Act 1997 | payment of excess transfer balance tax | |
| 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 | |