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Taxation Administration Act 1953

Authoritative Version
  • - C2019C00142
  • In force - Superseded Version
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Act No. 1 of 1953 as amended, taking into account amendments up to Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019
An Act to provide for the administration of certain Acts relating to Taxation, and for purposes connected therewith
Administered by: Treasury
General Comments: Sections 18-15, 18-20 and 18-25 of Schedule 1 of this Act have been modified by the operation of the Commissioner’s Remedial Power, click here to see the modification
Registered 15 Apr 2019
Start Date 01 Apr 2019
End Date 30 Jun 2019
Table of contents.

Commonwealth Coat of Arms of Australia

Taxation Administration Act 1953

No. 1, 1953

Compilation No. 162

Compilation date:                              1 April 2019

Includes amendments up to:            Act No. 16, 2019

Registered:                                         15 April 2019

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 990‑5)

Volume 3:       Endnotes

Each volume has its own contents

 

 

 

 

 

 

 

 

This compilation includes commenced amendments made by Act No. 8, 2019 and Act No. 15, 2019

 

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 1 April 2019 (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

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............................... 24

8AAD................... What is the general interest charge rate?......................... 25

8AAE.................... When the charge is due and payable................................. 25

8AAF.................... Notification by Commissioner.......................................... 26

8AAG................... Remission of the charge.................................................... 26

8AAGA................ Rounding of the charge..................................................... 27

8AAH................... Judgment for payment of an unpaid amount..................... 27

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      53

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

8G......................... Order to comply with requirement.................................... 54

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......................................... 64

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........................ 67

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

8S.......................... Election to treat offence otherwise than as prescribed taxation offence    68

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............ 70

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

Subdivision BAA—Offences relating to electronic sales suppression tools 74

8WAA................... Object of this Subdivision................................................ 74

8WAB................... Interpretation..................................................................... 74

8WAC................... Producing or supplying electronic sales suppression tools 75

8WAD................... Possessing electronic sales suppression tools................... 76

8WAE................... Incorrectly keeping records using electronic sales suppression tools       76

Subdivision BA—Offences relating to tax file numbers                                77

8WA...................... Unauthorised requirement etc. that tax file number be quoted  77

8WB...................... Unauthorised recording etc. of tax file number................. 78

8WC...................... Conducting affairs so as to avoid tax file number requirements               79

Subdivision C—Miscellaneous                                                                              81

8XA...................... Unauthorised access to taxation records........................... 81

8Y......................... Liability of officers etc. of corporations............................ 81

8Z.......................... Evidentiary certificate relating to previous convictions..... 82

Division 3—Prosecution of taxation offences                                                84

8ZA....................... Prosecution of taxation offences....................................... 84

8ZB....................... Prosecution may be commenced at any time..................... 85

8ZC....................... Place where offence committed......................................... 85

8ZD....................... Conduct by employees or agents of corporations............. 86

8ZE........................ Civil penalty not payable if prosecution instituted............. 86

8ZF........................ Penalties for corporations................................................. 87

8ZG....................... Enforcement of orders for payment.................................. 87

8ZH....................... Penalties not to relieve from tax........................................ 88

Division 4—Prescribed taxation offences                                                        89

8ZJ........................ Prosecution of prescribed taxation offences...................... 89

8ZK....................... Protection of witnesses..................................................... 90

8ZL........................ Averment.......................................................................... 91

8ZM...................... Evidence of authority to institute proceedings................... 91

8ZN....................... Costs................................................................................. 92

Division 5—Service of summons for prescribed taxation offences    93

9............................ Interpretation..................................................................... 93

10.......................... Service of summons by post............................................. 93

11.......................... Notice of conviction in absentia....................................... 94

12.......................... Notice of intention to issue warrant in default of payment 94

13.......................... Limitation of action to enforce payment of fine................. 95

13A....................... Setting aside of conviction or order.................................. 95

13B........................ Proof of service of summons or notice............................. 98

13C........................ Application of other laws.................................................. 98

Division 6—Setting aside etc. of conviction or order on application of Commissioner                99

13CA..................... Setting aside etc. of conviction or order on application of Commissioner                99

Part IIIA—Co‑operation between Commonwealth and State taxation authorities          101

Division 1—Interpretation                                                                                     101

13D....................... Interpretation................................................................... 101

Division 2—Trans‑border investigations                                                       103

13E........................ State taxation officers may refer matters to Commissioner for investigation            103

13F........................ Access to documents etc................................................. 103

13G....................... Commissioner may obtain information and evidence...... 104

Division 4—Certification by State taxation officer of copies of, and extracts from, documents             106

13K........................ Certification by State taxation officer of copies of, and extracts from, documents   106

Division 5—Australian Taxation Office may perform functions under State/Territory debits tax laws                                                                                                                    108

13L........................ Australian Taxation Office may perform functions under State/Territory debits tax laws        108

Part IVA—Departure from Australia of certain tax debtors                 110

Division 1—Interpretation                                                                                     110

14Q....................... Interpretation................................................................... 110

Division 2—Prohibition and authorisation of departure of certain tax debtors               111

14R........................ Departure from Australia of certain tax debtors prohibited 111

14S........................ Departure prohibition orders........................................... 111

14T........................ Revocation and variation of departure prohibition orders 112

14U....................... Departure authorisation certificates................................. 113

Division 3—Appeals from, and review of, decisions of the Commissioner          116

14V....................... Appeals to courts against making of departure prohibition orders           116

14W....................... Jurisdiction of courts...................................................... 116

14X....................... Orders of court on appeal............................................... 116

14Y....................... Applications for review of certain decisions................... 117

Division 4—Enforcement                                                                                        118

14Z........................ Powers of authorised officers......................................... 118

14ZA..................... Certain tax debtors to produce authority to depart etc..... 119

Part IVC—Taxation objections, reviews and appeals                                 120

Division 1—Introduction                                                                                        120

14ZL...................... Part applies to taxation objections................................... 120

14ZM.................... Division 2—Interpretive................................................. 120

14ZN..................... Division 3—Taxation objections.................................... 120

14ZO..................... Division 4—Tribunal review.......................................... 120

14ZP...................... Division 5—Federal Court appeals................................. 120

Division 2—Interpretive provisions                                                                  121

14ZQ..................... General interpretation provisions.................................... 121

14ZR..................... Taxation decisions covered by single notice to be treated as single decision            122

14ZS...................... Ineligible income tax remission decisions....................... 123

Division 3—Taxation objections                                                                         124

14ZU..................... How taxation objections are to be made.......................... 124

14ZV..................... Limited objection rights in the case of certain amended taxation decisions               124

14ZVA.................. Limited objection rights because of other objections....... 124

14ZVB.................. Objections relating to excess concessional contributions 125

14ZVC.................. Objections relating to non‑concessional contributions.... 126

14ZW.................... When taxation objections are to be made........................ 127

14ZX..................... Commissioner to consider applications for extension of time  133

14ZY..................... Commissioner to decide taxation objections................... 133

14ZYA.................. Person may require Commissioner to make an objection decision           134

14ZYB.................. Requiring Commissioner to make a private ruling.......... 135

14ZZ...................... Person may seek review of, or appeal against, Commissioner’s decision                135

Division 4—AAT review of objection decisions and extension of time refusal decisions             137

14ZZA................... Modified AAT Act to apply........................................... 137

14ZZB................... Sections 27, 28, 41 and 44A of the AAT Act not to apply to certain decisions       137

14ZZC................... Modification of section 29 of the AAT Act.................... 137

14ZZD................... Modification of section 30 of the AAT Act.................... 138

14ZZE................... Hearings before Tribunal to be held in private if applicant so requests    138

14ZZF................... Modification of section 37 of the AAT Act.................... 138

14ZZG................... Modification of section 38 of the AAT Act.................... 139

14ZZJ.................... Modification of section 43 of the AAT Act.................... 140

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

14ZZL................... Implementation of Tribunal decisions............................. 141

14ZZM.................. Pending review not to affect implementation of taxation decisions          141

Division 5—Court appeals against objection decisions                          142

14ZZN................... Time limit for appeals..................................................... 142

14ZZO................... Grounds of objection and burden of proof..................... 142

14ZZP................... Order of court on objection decision............................... 142

14ZZQ................... Implementation of court order in respect of objection decision                142

14ZZR................... Pending appeal not to affect implementation of taxation decisions           143

14ZZS................... Transfer of certain proceedings to Family Court............. 143

Part V—Miscellaneous                                                                                                    146

15.......................... Appearance by Commissioner etc................................... 146

15A....................... Certification by Commissioner of copies of, and extracts from, documents             147

15B........................ Recoverable advances..................................................... 149

15C........................ Recoverable payments.................................................... 150

15D....................... Reports about recoverable advances and recoverable payments               152

16.......................... Payments out of Consolidated Revenue Fund................ 154

16A....................... Regulations may provide for methods of payment of tax liabilities etc.    155

16B........................ Certain liabilities to be reduced to nearest multiple of 5 cents.. 156

17.......................... Powers of taxation officers in relation to references to currency etc.        156

17A....................... Powers of Federal Court and Federal Circuit Court in respect of taxation matters   157

18.......................... Regulations..................................................................... 158

Schedule 1—Collection and recovery of income tax and other liabilities               159

Chapter 2—Collection, recovery and administration of income tax  159

Part 2‑1—Introduction to the Pay as you go (PAYG) system            159

Division 6Guide to Parts 2‑5 and 2‑10                                                          159

6‑1......................... What Parts 2‑5 and 2‑10 are about.................................. 159

6‑5......................... The Pay as you go (PAYG) system............................... 159

6‑10....................... How the amounts collected are dealt with....................... 160

Part 2‑5—Pay as you go (PAYG) withholding                                           161

Division 10Guide to Part 2‑5                                                                           161

10‑1....................... What this Part is about.................................................... 161

10‑5....................... Summary of withholding payments................................ 161

Division 11—Preliminary matters                                                                    164

11‑1....................... Object of this Part........................................................... 164

11‑5....................... Constructive payment..................................................... 164

Division 12—Payments from which amounts must be withheld                 166

Subdivision 12‑A—General rules                                                                       166

12‑1....................... General exceptions.......................................................... 166

12‑5....................... What to do if more than one provision requires a withholding 168

12‑7....................... Division does not apply to alienated personal services payments             169

12‑10..................... Division does not apply to non‑cash benefits................. 170

12‑20..................... Application of Division and regulations to non‑share dividends              170

Subdivision 12‑B—Payments for work and services                                    170

12‑35..................... Payment to employee...................................................... 171

12‑40..................... Payment to company director.......................................... 171

12‑45..................... Payment to office holder................................................. 171

12‑47..................... Payment to religious practitioners................................... 172

12‑50..................... Return to work payment................................................. 172

12‑55..................... Voluntary agreement to withhold.................................... 172

12‑60..................... Payment under labour hire arrangement, or specified by regulations       173

Subdivision 12‑C—Payments for retirement or because of termination of employment            174

12‑80..................... Superannuation income streams and annuities................ 174

12‑85..................... Superannuation lump sums and payments for termination of employment              174

12‑90..................... Unused leave payments.................................................. 175

Subdivision 12‑D—Benefit and compensation payments                             175

12‑110................... Social Security or other benefit payment......................... 175

12‑115................... Commonwealth education or training payment............... 176

12‑120................... Compensation, sickness or accident payment................. 176

Subdivision 12‑E—Payments where TFN or ABN not quoted                    176

Payment in respect of investment                                                                       177

12‑140................... Recipient does not quote tax file number........................ 177

12‑145................... Investor becoming presently entitled to income of a unit trust  178

12‑150................... Limited application of section 12‑140 to payment under financial arrangement       179

12‑152................... Limited application of section 12‑140 to payment covered by section 12A‑205      180

12‑155................... When investor may quote ABN as alternative................ 180

12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying                181

12‑165................... Exception for fully franked dividend.............................. 181

12‑170................... Exception for payments below thresholds set by regulations 181

Payment of income of closely held trust where TFN not quoted                182

12‑175................... Trustee distributes income of closely held trust.............. 182

12‑180................... Beneficiary becomes presently entitled to income of closely held trust    184

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

Payment for a supply                                                                                            185

12‑190................... Recipient does not quote ABN....................................... 185

Subdivision 12‑F—Dividend, interest and royalty payments                      188

Dividends           189

12‑210................... Dividend payment to overseas person............................ 189

12‑215................... Dividend payment received for foreign resident............. 190

12‑220................... Application to part of a dividend..................................... 190

12‑225................... Application to distribution by a liquidator or other person 190

Interest               191

12‑245................... Interest payment to overseas person............................... 191

12‑250................... Interest payment received for foreign resident................ 191

12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 192

12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment        192

Royalties            193

12‑280................... Royalty payment to overseas person............................... 193

12‑285................... Royalty payment received for foreign resident................ 193

General              194

12‑300................... Limits on amount withheld under this Subdivision......... 194

Subdivision 12‑FA—Departing Australia superannuation payments       194

12‑305................... Departing Australia superannuation payment................. 195

12‑310................... Limits on amount withheld under this Subdivision......... 195

Subdivision 12‑FAA—Excess untaxed roll‑over amount                             195

12‑312................... Untaxed roll‑over superannuation benefits..................... 195

12‑313................... Limits on amount withheld under this Subdivision......... 195

Subdivision 12‑FB—Payments to foreign residents etc.                               196

12‑315................... Payment to foreign resident etc....................................... 196

12‑317................... Payment received for foreign resident etc....................... 197

12‑319................... Exemptions from withholding obligations under this Subdivision           199

Subdivision 12‑FC—Seasonal Labour Mobility Program                          200

12‑319A................ Payment to employee...................................................... 200

Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources                200

Mining on Aboriginal land                                                                                  201

12‑320................... Mining payment.............................................................. 201

Natural resources                                                                                                   201

12‑325................... Natural resource payment............................................... 201

12‑330................... Payer must ask Commissioner how much to withhold... 202

12‑335................... Commissioner may exempt from section 12‑330, subject to conditions   202

Subdivision 12‑H—Distributions of withholding MIT income                   203

Guide to Subdivision 12‑H                                                                                   203

12‑375................... What this Subdivision is about....................................... 203

Operative provisions                                                                                             204

12‑383................... Meaning of withholding MIT.......................................... 204

12‑385................... Withholding by withholding MITs................................. 205

12‑390................... Withholding by custodians and other entities.................. 207

12‑395................... Requirement to give notice or make information available 211

12‑405................... Meaning of fund payment—general case........................ 213

12‑410................... Entity to whom payment is made.................................... 216

12‑415................... Failure to give notice or make information available: administrative penalty            216

12‑420................... Agency rules................................................................... 217

12‑425................... Meaning of clean building managed investment trust.... 217

12‑430................... Meaning of clean building.............................................. 218

Subdivision 12‑J—FHSS released amounts                                                     219

12‑460................... FHSS released amounts.................................................. 219

Division 12A—Distributions by AMITs (including deemed payments)    220

Guide to Division 12A                                                                                           220

12A‑1.................... What this Division is about............................................. 220

Subdivision 12A‑A—Distributions by AMITs relating to dividend, interest and royalties          221

Guide to Subdivision 12A‑A                                                                                 221

12A‑5.................... What this Subdivision is about....................................... 221

Operative provisions                                                                                             221

12A‑10.................. Deemed payments—no obligation to withhold under Subdivision 12‑F (dividend, interest and royalty payments)....................................................................... 221

12A‑15.................. Dividend, interest or royalty payments relating to AMIT—requirement to give notice or make information available.......................................................................... 222

12A‑20.................. Failure to give notice or make information available under section 12A‑15: administrative penalty         225

12A‑25.................. Meaning of AMIT DIR payment..................................... 225

12A‑30.................. Meaning of AMIT dividend payment.............................. 226

12A‑35.................. Meaning of AMIT interest payment................................ 227

12A‑40.................. Meaning of AMIT royalty payment................................. 228

Subdivision 12A‑B—Distributions by AMITs relating to Subdivision 12‑H fund payments       229

Guide to Subdivision 12A‑B                                                                                 229

12A‑100................ What this Subdivision is about....................................... 229

Operative provisions                                                                                             229

12A‑105................ Deemed payments—no obligation to withhold under Subdivision 12‑H 229

12A‑110................ Meaning of fund payment—AMITs............................... 230

Subdivision 12A‑C—Deemed payments by AMITs etc.                                234

Guide to Subdivision 12A‑C                                                                                 234

12A‑200................ What this Subdivision is about....................................... 234

Operative provisions                                                                                             235

12A‑205................ Issue of AMMA statement etc. deemed to be payment... 235

12A‑210................ Post‑AMMA actual payment and pre‑AMMA actual payment in respect of deemed payment  237

12A‑215................ AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc. 238

12A‑220................ Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc.           239

Division 13—Alienated personal services payments                                     242

13‑1....................... Object of this Division.................................................... 242

13‑5....................... Payment to the Commissioner in respect of alienated personal services payments   242

13‑10..................... Alienated personal services payments............................. 245

13‑15..................... Personal services payment remitters............................... 246

13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01    247

Division 14—Benefits, gains and taxable supplies for which amounts must be paid to the Commissioner             248

Subdivision 14‑A—Non‑cash benefits                                                               248

14‑1....................... Object of this Subdivision.............................................. 248

14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding..................................................................... 248

14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit              249

14‑15..................... Payer can recover amount paid to the Commissioner...... 250

Subdivision 14‑B—Accruing gains                                                                    250

14‑50..................... Object of this Subdivision.............................................. 250

14‑55..................... Liability for TFN withholding tax................................... 251

14‑60..................... Investment body may recover TFN withholding tax from investor          252

14‑65..................... Application of rules in Division 18................................. 252

14‑75..................... Overpayment of TFN withholding tax............................ 253

14‑85..................... Other laws do not exempt from TFN withholding tax.... 253

Subdivision 14‑C—Shares and rights under employee share schemes     254

14‑155................... Liability for TFN withholding tax (ESS)........................ 254

14‑160................... Employer may give individual tax file numbers to provider 255

14‑165................... Provider may recover TFN withholding tax (ESS) from individual         255

14‑170................... Application of rules in Division 18................................. 256

14‑175................... Overpayment of TFN withholding tax (ESS)................. 256

14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997  256

Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property        257

14‑200................... Certain acquisitions of taxable Australian property from foreign residents              257

14‑205................... Effect of look‑through earnout rights.............................. 258

14‑210................... Whether an entity is a relevant foreign resident............... 259

14‑215................... Excluded transactions..................................................... 261

14‑220................... Commissioner clearance certificates................................ 263

14‑225................... Entity declarations........................................................... 263

14‑230................... Administrative penalties for false or misleading declarations 264

14‑235................... Varying amounts to be paid to the Commissioner.......... 265

Subdivision 14‑E—GST payable on taxable supplies of certain real property              266

14‑250................... Recipients of certain taxable supplies of real property must pay amounts to Commissioner    267

14‑255................... Notification by suppliers of residential premises etc....... 269

Division 15—Working out the amount to withhold                                       272

Guide to Division 15                                                                                              272

15‑1....................... What this Division is about............................................. 272

Subdivision 15‑A—Working out how much to withhold                              272

15‑10..................... How much to withhold................................................... 273

15‑15..................... Variation of amounts required to be withheld................. 273

Subdivision 15‑B—Withholding schedules and regulations                        274

15‑25..................... Commissioner’s power to make withholding schedules. 274

15‑30..................... Matters to be considered when making withholding schedules                275

15‑35..................... Regulations about withholding....................................... 276

Subdivision 15‑C—Declarations                                                                        277

15‑50..................... Declarations.................................................................... 277

Division 16—Payer’s obligations and rights                                                   279

Guide to Division 16                                                                                              279

16‑1....................... What this Division is about............................................. 279

Subdivision 16‑A—To withhold                                                                          279

When to withhold                                                                                                    280

16‑5....................... When to withhold an amount.......................................... 280

16‑7....................... Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12     280

16‑20..................... Payer discharged from liability to recipient for amount withheld             281

Penalties for not withholding                                                                              281

16‑25..................... Failure to withhold: offence............................................ 281

16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 282

16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty............................ 283

16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment.............................................. 284

16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.......................................................... 284

Subdivision 16‑B—To pay withheld amounts to the Commissioner         285

When and how to pay amounts to the Commissioner                                    285

16‑70..................... Entity to pay amounts to Commissioner......................... 285

16‑75..................... When amounts must be paid to Commissioner............... 286

16‑80..................... Penalty for failure to pay within time.............................. 288

16‑85..................... How amounts are to be paid........................................... 288

Who is a large, medium or small withholder                                                  289

16‑95..................... Meaning of large withholder.......................................... 289

16‑100................... Meaning of medium withholder...................................... 290

16‑105................... Meaning of small withholder.......................................... 290

16‑110................... Commissioner may vary withholder’s status downwards 290

16‑115................... Commissioner may vary withholder’s status upwards... 291

Subdivision 16‑BA—To be registered                                                               292

Registration of withholders                                                                                 293

16‑140................... Withholders must be registered....................................... 293

16‑141................... Registration and cancellation........................................... 294

Branch registration                                                                                               294

16‑142................... Branches may be registered............................................ 294

16‑143................... Separate amounts for entities and branches..................... 295

16‑144................... Cancellation of branch registration.................................. 295

16‑145................... Effect on branches of cancelling the entity’s registration 295

Registration of employers of working holiday makers                                296

16‑146................... Employers of working holiday makers must be registered 296

16‑147................... Registering employers of working holiday makers......... 296

16‑148................... Cancelling the registration of employers of working holiday makers       298

Subdivision 16‑C—To provide information                                                   300

To the Commissioner                                                                                            300

16‑150................... Commissioner must be notified of amounts.................... 300

16‑152................... Annual reports—Withholding payments covered by section 12‑175       301

16‑153................... Annual reports—other payments.................................... 302

To recipients of withholding payments                                                             305

16‑155................... Annual payment summary.............................................. 305

16‑156................... Annual payment summary for sections 12‑175 and 12‑180 307

16‑157................... Payment summary for Subdivision 12‑H....................... 307

16‑160................... Part‑year payment summary........................................... 308

16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment         309

16‑166................... Payment summary for a departing Australia superannuation payment     310

16‑167................... Payment summary for payment to recipient who does not quote ABN    310

16‑170................... Form and content of payment summary.......................... 311

16‑175................... Penalty for not providing payment summary.................. 312

16‑180................... Commissioner may exempt entity from giving payment summary           313

16‑182................... Definition of reportable employer superannuation contribution             313

Subdivision 16‑D—Additional rights and obligations of entity that makes a payment                314

16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes    314

Division 18—Recipient’s entitlements and obligations                                 316

Subdivision 18‑A—Crediting withheld amounts                                            316

Guide to Subdivision 18‑A                                                                                    316

18‑1....................... What this Subdivision is about....................................... 316

General exception                                                                                                  318

18‑5....................... No credit for refunded amount........................................ 318

Entitlement to credits: income tax liability                                                     318

18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 318

18‑15..................... Tax credit for recipient of withholding payments............ 319

18‑20..................... Tax credit where recipient is a partnership...................... 319

18‑25..................... Tax credit where recipient is a trust................................. 320

18‑27..................... Tax credit for alienated personal services payments........ 322

Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program                                                                    322

18‑30..................... Credit: dividend, interest or royalty................................. 322

18‑32..................... Credit: amount attributable to fund payment................... 323

18‑33..................... Credit: Seasonal Labour Mobility Program.................... 324

18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge               324

18‑40..................... Credit: liability under Part 4‑25....................................... 326

Entitlement to credit: departing Australia superannuation payment       328

18‑42..................... Credit—departing Australia superannuation payment..... 328

Entitlement to credit: mining payment                                                             329

18‑45..................... Credit—mining payment................................................. 329

Entitlement to credit: Petroleum resource rent tax                                       330

18‑55..................... Credit—Natural resource payments................................ 330

Entitlement to credit: taxable supply of real property                                 330

18‑60..................... Credit—payment relating to taxable supply of real property 330

Subdivision 18‑B—Refund of certain withheld amounts                             331

18‑65..................... Refund of withheld amounts by the payer to the recipient 331

18‑70..................... Refund of withheld amounts by the Commissioner to the recipient         334

18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment           336

18‑85..................... Refund by Commissioner of amount withheld from payment in respect of taxable supply of real property........................................................................................ 337

Subdivision 18‑C—Recipient’s obligations                                                      337

18‑100................... Obligation to keep payment summary............................. 337

Subdivision 18‑D—Directors etc. of non‑complying companies                338

Object of Subdivision                                                                                            339

18‑120................... Object of Subdivision..................................................... 339

PAYG withholding non‑compliance tax                                                           339

18‑125................... Directors of non‑complying companies.......................... 339

18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances       341

18‑135................... Associates of directors of non‑complying companies..... 342

18‑140................... Notices............................................................................ 346

18‑145................... When PAYG withholding non‑compliance tax must be paid.. 347

18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax               348

18‑155................... Validity of decisions and evidence.................................. 348

18‑160................... Rights of indemnity and contribution.............................. 349

Credits for later compliance                                                                               350

18‑165................... Credits for later compliance—scope............................... 350

18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances          350

18‑175................... Credits for later compliance—Commissioner may give notice 352

18‑180................... Effect of earlier credits.................................................... 353

Other provisions                                                                                                     354

18‑185................... When Commissioner may give notice............................. 354

18‑190................... Review of decisions........................................................ 355

Division 20—Other matters                                                                                 356

Subdivision 20‑B—Offences                                                                                356

20‑35..................... Offences......................................................................... 356

20‑40..................... Joining of charges........................................................... 357

20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company    358

Subdivision 20‑D—Review of decisions                                                            359

20‑80..................... Reviewable decisions...................................................... 359

Division 21—Entitlements relating to insolvent ADIs and general insurers 361

Guide to Division 21                                                                                              361

21‑1....................... What this Division is about............................................. 361

Subdivision 21‑A—Treatment of some payments by APRA                       361

21‑5....................... APRA treated like ADI or general insurance company.. 361

Part 2‑10—Pay as you go (PAYG) instalments                                          363

Division 45—Instalment payments                                                                    363

Guide to Division 45                                                                                              364

45‑1....................... What this Division is about............................................. 364

Subdivision 45‑A—Basic rules                                                                            365

45‑5....................... Object of this Part........................................................... 365

45‑10..................... Application of Part.......................................................... 367

45‑15..................... Liability for instalments.................................................. 367

45‑20..................... Information to be given to the Commissioner by certain payers               368

45‑25..................... Penalty for failure to notify Commissioner..................... 368

45‑30..................... Credit for instalments payable......................................... 369

Subdivision 45‑B—When instalments are due                                                370

45‑50..................... Liability to pay instalments............................................. 370

45‑60..................... Meaning of instalment quarter....................................... 371

45‑61..................... When quarterly instalments are due—payers of quarterly instalments     371

45‑65..................... Meaning of instalment month......................................... 372

45‑67..................... When monthly instalments are due—payers of monthly instalments       373

45‑70..................... When annual instalments are due.................................... 373

45‑72..................... Means of payment of instalment..................................... 374

45‑75..................... Instalments recoverable in same way as income tax........ 374

45‑80..................... General interest charge on late payment.......................... 374

45‑90..................... Commissioner may withdraw instalment rate................. 374

Subdivision 45‑C—Working out instalment amounts                                   375

45‑110................... How to work out amount of quarterly instalment on instalment income basis         375

45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax   376

45‑114................... How to work out amount of monthly instalment............ 377

45‑115................... How to work out amount of annual instalment............... 378

45‑120................... Meaning of instalment income........................................ 379

Subdivision 45‑D—Quarterly payers                                                                383

45‑125................... Quarterly payer who pays instalments on the basis of instalment income                383

45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax     385

45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 387

45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 388

Subdivision 45‑DA—Monthly payers                                                                389

45‑136................... Monthly payer................................................................ 389

45‑138................... Monthly payer requirement............................................. 390

Subdivision 45‑E—Annual payers                                                                     392

When you start and stop being an annual payer                                            392

45‑140................... Choosing to pay annual instalments................................ 392

45‑145................... Meaning of instalment group......................................... 394

45‑150................... Entity stops being annual payer if involved with GST registration or instalment group           394

45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly      395

45‑160................... Head company of a consolidated group stops being annual payer           396

Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income                                                                                         397

45‑200................... Application..................................................................... 397

45‑205................... Choosing a varied instalment rate................................... 397

45‑210................... Notifying Commissioner of varied instalment rate.......... 398

45‑215................... Credit on using varied rate in certain cases..................... 398

Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low              400

45‑225................... Effect of Subdivision in relation to monthly payers........ 400

45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate     400

45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax........................................................................................ 402

45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment      411

45‑235................... Liability to GIC on shortfall in annual instalment........... 412

45‑240................... Commissioner may remit general interest charge............ 414

Subdivision 45‑H—Partnership income                                                           414

45‑260................... Instalment income for a period in which you are in a partnership            414

Subdivision 45‑I—Trust income included in instalment income of beneficiary            415

45‑280................... Instalment income for a period in which you are a beneficiary of a trust  415

45‑285................... Instalment income includes distributions by certain resident unit trusts   418

45‑286................... Instalment income includes distributions by certain managed investment trusts       419

45‑287................... When trusts are disqualified due to concentrated ownership 420

45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled  422

45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income                422

Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax          423

45‑320................... Working out instalment rate............................................ 423

45‑325................... Working out your notional tax........................................ 424

45‑330................... Working out your adjusted taxable income.................... 425

45‑335................... Working out your adjusted withholding income............. 428

45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income           428

Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax             431

45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax      431

45‑360................... How Commissioner works out benchmark instalment rate 431

45‑365................... Working out your benchmark tax................................... 432

45‑370................... Working out your adjusted assessed taxable income for the variation year             433

45‑375................... Adjusted assessed tax on adjusted assessed taxable income 434

Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax                                                                                                 436

45‑400................... Working out amount of instalment—payers of 4 quarterly instalments    436

45‑402................... Working out amount of instalment—payers of 2 quarterly instalments    438

45‑405................... Working out your GDP‑adjusted notional tax................ 440

Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax                                                                                                 441

45‑410................... Working out amount of instalment—payers of 4 quarterly instalments    442

45‑412................... Working out amount of instalment—payers of 2 quarterly instalments    443

45‑415................... Estimating your benchmark tax....................................... 445

45‑420................... Credit in certain cases where amount of instalment is nil 446

Subdivision 45‑N—How this Part applies to the trustee of a trust             447

Trustees to whom this Part applies                                                                    447

45‑450................... Trustees to whom a single instalment rate is given......... 447

45‑455................... Trustees to whom several instalment rates are given....... 448

45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 449

45‑465................... Meaning of instalment income........................................ 449

45‑468................... Multi‑rate trustee may pay quarterly instalments............. 450

How Commissioner works out instalment rate and notional tax for a multi‑rate trustee            450

45‑470................... Working out instalment rate............................................ 450

45‑473................... Commissioner must notify you of notional tax............... 451

45‑475................... Working out your notional tax........................................ 451

45‑480................... Working out your adjusted taxable income.................... 452

45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share         452

45‑485................... Working out your adjusted withholding income............. 453

How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee                454

45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax      454

45‑530................... How Commissioner works out benchmark instalment rate 454

45‑535................... Working out your benchmark tax................................... 455

Subdivision 45‑P—Anti‑avoidance rules                                                          455

45‑595................... Object of this Subdivision.............................................. 456

45‑597................... Effect of Subdivision in relation to instalment months.... 456

45‑600................... General interest charge on tax benefit relating to instalments 456

45‑605................... When do you get a tax benefit from a scheme?............... 458

45‑610................... What is your tax position for an income year?................ 459

45‑615................... What is your hypothetical tax position for an income year? 461

45‑620................... Amount on which GIC is payable, and period for which it is payable     461

45‑625................... Credit if you also got a tax detriment from the scheme... 462

45‑630................... When do you get a tax detriment from a scheme?........... 463

45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides                464

45‑640................... Commissioner may remit general interest charge in special cases            466

Subdivision 45‑Q—General rules for consolidated groups                         466

Guide to Subdivision 45‑Q                                                                                   466

45‑700................... What this Subdivision is about....................................... 466

Application of Subdivision                                                                                   467

45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers       467

45‑705................... Application of Subdivision to head company................. 468

Usual operation of this Part for consolidated group members                  472

45‑710................... Single entity rule............................................................. 472

45‑715................... When instalments are due—modification of section 45‑61 473

45‑720................... Head company cannot be an annual payer—modification of section 45‑140           473

Membership changes                                                                                             473

45‑740................... Change of head company................................................ 473

45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group)              476

45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group)           477

45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax   479

Subdivision 45‑R—Special rules for consolidated groups                           481

Guide to Subdivision 45‑R                                                                                    481

45‑850................... What this Subdivision is about....................................... 481

Operative provisions                                                                                             482

45‑855................... Section 701‑1 disregarded for certain purposes.............. 482

45‑860................... Member having a different instalment period.................. 482

45‑865................... Credit rule....................................................................... 483

45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment       485

45‑875................... Other rules about the general interest charge................... 488

45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group          489

45‑885................... Early application of Subdivision 45‑Q to the head company of a new group           491

Subdivision 45‑S—MEC groups                                                                         492

Guide to Subdivision 45‑S                                                                                    492

45‑900................... What this Subdivision is about....................................... 492

Preliminary      493

45‑905................... Objects of Subdivision................................................... 493

General modification rules                                                                                  494

45‑910................... Extended operation of Part to cover MEC groups.......... 494

Extended operation of Subdivision 45‑Q                                                         495

45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups  495

45‑915................... Application of Subdivision 45‑Q to provisional head company               495

45‑917................... Assumption for applying section 45‑710 (single entity rule) 499

45‑920................... Change of provisional head company............................. 499

45‑922................... Life insurance company.................................................. 502

Extended operation of Subdivision 45‑R                                                          503

45‑925................... Additional modifications of sections 45‑855 and 45‑860 503

45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision     503

45‑935................... Additional modifications of section 45‑885.................... 504

Part 2‑15—Returns and assessments                                                               505

Division 70Tax receipts                                                                                    505

Guide to Division 70                                                                                              505

70‑1....................... What this Division is about............................................. 505

Subdivision 70‑A—Tax receipts                                                                         505

70‑5....................... Tax receipt to be provided to certain individual taxpayers 506

Part 2‑30—Collecting Medicare levy with income tax                           508

Division 90Medicare levy and Medicare levy surcharge                        508

Subdivision 90‑A—Treatment like income tax                                               508

90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 508

Part 2‑35—Excess superannuation contributions                                     509

Division 95—Excess concessional contributions charge                              509

Guide to Division 95                                                                                              509

95‑1....................... What this Division is about............................................. 509

Subdivision 95‑A—Object of Division                                                              509

95‑5....................... Object of Division.......................................................... 509

Subdivision 95‑B—Excess concessional contributions charge                   510

95‑10..................... Liability to excess concessional contributions charge..... 510

95‑15..................... Amount of excess concessional contributions charge..... 511

95‑20..................... When excess concessional contributions charge is due and payable        511

95‑25..................... General interest charge.................................................... 512

Division 97—Excess contributions determinations                                       513

Subdivision 97‑A—Excess concessional contributions determinations    513

Guide to Subdivision 97‑A                                                                                    513

97‑1....................... What this Subdivision is about....................................... 513

Operative provisions                                                                                             513

97‑5....................... Determination of excess concessional contributions and charge              513

97‑10..................... Review............................................................................ 514

Subdivision 97‑B—Excess non‑concessional contributions determinations 514

Guide to Subdivision 97‑B                                                                                    514

97‑20..................... What this Subdivision is about....................................... 514

Operative provisions                                                                                             515

97‑25..................... Excess non‑concessional contributions determinations... 515

97‑30..................... Associated earnings........................................................ 515

97‑35..................... Review............................................................................ 516


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 (within the meaning of the Income Tax Assessment Act 1997) 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 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

 

 

3B

67

Excise Act 1901

payment of excise duty for tobacco goods

 

 

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

former section
163AA

Income Tax Assessment Act 1936

returns by instalment taxpayers

 

 

10

former section 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