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Taxation Administration Act 1953

Authoritative 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

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

Chapter 3—Collection, recovery and administration of other taxes      1

Part 3‑10—Indirect taxes                                                                                           1

Division 105—General rules for indirect taxes                                                  1

Guide to Division 105                                                                                                1

105‑1..................... What this Division is about................................................. 1

Subdivision 105‑D—General interest charge and penalties                            2

105‑80................... General interest charge........................................................ 2

105‑85................... Amending Acts cannot impose penalties or general interest charge earlier than 28 days after Royal Assent............................................................................................ 3

Subdivision 105‑F—Indirect tax refund schemes                                              3

105‑120................. Refund scheme—defence related international obligations. 3

105‑125................. Refund scheme—international obligations.......................... 4

Subdivision 105‑G—Other administrative provisions                                     5

105‑145................. Commissioner must give things in writing......................... 5

Division 110—Goods and services tax                                                                  6

Guide to Division 110                                                                                                6

110‑1..................... What this Division is about................................................. 6

Subdivision 110‑F—Review of GST decisions                                                    6

110‑50................... Reviewable GST decisions................................................. 6

Division 111—Wine tax and luxury car tax                                                      11

Guide to Division 111                                                                                              11

111‑1..................... What this Division is about............................................... 11

Subdivision 111‑C—Review of wine tax decisions                                           11

111‑50................... Reviewable wine tax decisions......................................... 11

Subdivision 111‑D—Effect on contracts from amendments to laws           12

111‑60................... Alteration of contracts if cost of complying with agreement is affected by later alteration to wine tax or luxury car tax laws....................................................................... 12

Division 112—Fuel tax                                                                                           14

Guide to Division 112                                                                                              14

112‑1..................... What this Division is about............................................... 14

Subdivision 112‑E—Review of fuel tax decisions                                            14

112‑50................... Reviewable fuel tax decisions........................................... 14

Part 3‑15—Major bank levy                                                                                  16

Division 115General provisions relating to the major bank levy           16

115‑1..................... What this Division is about............................................... 16

115‑5..................... Returns............................................................................. 16

115‑10................... When major bank levy is due and payable........................ 17

Division 117—Anti‑avoidance                                                                              18

Guide to Division 117                                                                                              18

117‑1..................... What this Division is about............................................... 18

Subdivision 117‑A—Application of this Division                                             18

117‑5..................... Object of this Division...................................................... 18

117‑10................... Application of this Division.............................................. 19

117‑15................... Meaning of MBL benefit................................................... 19

117‑20................... Matters to be considered in determining purpose.............. 20

Subdivision 117‑B—Commissioner may negate effects of schemes for MBL benefits                20

117‑25................... Commissioner may negate entity’s MBL benefits............ 21

117‑30................... Determination has effect according to its terms................. 21

117‑35................... Commissioner may disregard scheme in making determinations             21

117‑40................... One determination may cover several quarters etc............ 22

117‑45................... Commissioner must give copy of determination to entity affected           22

117‑50................... Objections......................................................................... 22

Part 3‑20—Superannuation                                                                                    23

Division 131—Releasing money from superannuation                                  23

Subdivision 131‑A—Releasing money from superannuation                       23

Guide to Subdivision 131‑A                                                                                   23

131‑1..................... What this Subdivision is about......................................... 23

Requesting a release authority                                                                              24

131‑5..................... Requesting the release of amounts from superannuation interests            24

131‑10................... Restrictions on the total amount you can request to be released               26

Issuing a release authority to superannuation provider                                27

131‑15................... Issuing release authorities................................................. 27

131‑20................... Amount to be stated in a release authority......................... 28

131‑25................... Contents of a release authority.......................................... 29

131‑30................... Varying and revoking a release authority.......................... 29

Complying with a release authority                                                                    29

131‑35................... Obligations of superannuation providers.......................... 29

131‑40................... Voluntary compliance with a release authority relating to defined benefit interests  30

131‑45................... Meaning of maximum available release amount................ 30

131‑50................... Notifying Commissioner.................................................. 31

131‑55................... Notifying you................................................................... 31

131‑60................... Compensation for acquisition of property......................... 32

Consequences of releasing amounts                                                                    32

131‑65................... Entitlement to credits......................................................... 32

131‑70................... Interest for late payments of money received by the Commissioner in accordance with release authority.......................................................................................... 33

131‑75................... Income tax treatment of amounts released—proportioning rule does not apply       33

Division 133—Division 293 tax                                                                            34

Guide to Division 133                                                                                              34

133‑1..................... What this Division is about............................................... 34

Subdivision 133‑A—Deferral determination                                                    34

Guide to Subdivision 133‑A                                                                                   34

133‑5..................... What this Subdivision is about......................................... 34

Operative provisions                                                                                               35

133‑10................... Determination of tax that is deferred to a debt account..... 35

133‑15................... Defined benefit tax............................................................ 36

133‑20................... How to attribute the defined benefit tax to defined benefit interests         37

133‑25................... Determination reducing tax deferred to a debt account...... 37

133‑30................... General provisions applying to determinations under this Subdivision    37

Subdivision 133‑B—Debt account                                                                        38

Guide to Subdivision 133‑B                                                                                   38

133‑55................... What this Subdivision is about......................................... 38

Operative provisions                                                                                               39

133‑60................... Debt account to be kept for deferred tax........................... 39

133‑65................... Interest on debt account balance........................................ 39

133‑70................... Voluntary payments.......................................................... 40

133‑75................... Commissioner must notify superannuation provider of debt account       41

Subdivision 133‑C—Compulsory payment                                                       41

Guide to Subdivision 133‑C                                                                                   41

133‑100................. What this Subdivision is about......................................... 41

Debt account discharge liability                                                                           42

133‑105................. Liability to pay debt account discharge liability................. 42

133‑110................. When debt account discharge liability must be paid.......... 42

133‑115................. General interest charge...................................................... 42

133‑120................. Meaning of debt account discharge liability..................... 43

133‑125................. Notice of debt account discharge liability.......................... 44

End benefit        44

133‑130................. Meaning of end benefit..................................................... 44

133‑135................. Superannuation provider may request debt account status 45

133‑140................. End benefit notice—superannuation provider................... 46

133‑145................. End benefit notice—material changes or omissions.......... 47

Division 135—Releasing money from superannuation                                  48

Guide to Division 135                                                                                              48

135‑1..................... What this Division is about............................................... 48

Subdivision 135‑A—When the Commissioner must issue a release authority                48

Guide to Subdivision 135‑A                                                                                   48

135‑5..................... What this Subdivision is about......................................... 48

Operative provisions                                                                                               49

135‑10................... Release authorities............................................................ 49

Subdivision 135‑B—When a release authority can be given to a superannuation provider       50

Guide to Subdivision 135‑B                                                                                   50

135‑35................... What this Subdivision is about......................................... 50

Operative provisions                                                                                               51

135‑40................... When you may give release authority to superannuation provider           51

Subdivision 135‑C—Release of superannuation money under a release authority       51

Guide to Subdivision 135‑C                                                                                   51

135‑70................... What this Subdivision is about......................................... 51

Operative provisions                                                                                               52

135‑75................... Requirement for superannuation provider to release money 52

135‑80................... Compensation for acquisition of property......................... 53

135‑85................... Release amount................................................................. 53

135‑90................... How the Commissioner applies amounts received under a release authority            54

135‑95................... Defined benefit interests—releasing amounts to pay debt account discharge liability              54

135‑100................. Income tax treatment of amounts released—proportioning rule does not apply       54

Division 136—Transfer balance cap                                                                  55

Guide to Division 136                                                                                              55

136‑1..................... What this Division is about............................................... 55

Subdivision 136‑A—Excess transfer balance determinations                      55

Guide to Subdivision 136‑A                                                                                   55

136‑5..................... What this Subdivision is about......................................... 55

Operative provisions                                                                                               56

136‑10................... Excess transfer balance determination............................... 56

136‑15................... Review.............................................................................. 57

136‑20................... Electing to commute a different superannuation income stream               57

136‑25................... Notifying Commissioner of transfer balance debits.......... 58

Subdivision 136‑B—Commutation authorities                                                 59

Guide to Subdivision 136‑B                                                                                   59

136‑50................... What this Subdivision is about......................................... 59

Obligations of Commissioner                                                                               60

136‑55................... Issuing of commutation authorities................................... 60

136‑60................... Varying and revoking a commutation authority................ 61

136‑65................... Issuing further commutation authorities............................ 61

136‑70................... Notifying of non‑commutable excess transfer balance...... 62

Obligations of superannuation income stream providers                             63

136‑80................... Obligations on superannuation income stream providers.. 63

136‑85................... Notifying the Commissioner............................................. 64

136‑90................... Notifying you................................................................... 64

Division 138—First home super saver scheme                                                 65

Guide to Division 138                                                                                              65

138‑1..................... What this Division is about............................................... 65

Subdivision 138‑A—First home super saver determination                         65

Guide to Subdivision 138‑A                                                                                   65

138‑5..................... What this Subdivision is about......................................... 65

Operative provisions                                                                                               66

138‑10................... First home super saver determination............................... 66

138‑15................... Review.............................................................................. 67

Subdivision 138‑B—FHSS maximum release amount                                   67

Guide to Subdivision 138‑B                                                                                   67

138‑20................... What this Subdivision is about......................................... 67

Operative provisions                                                                                               68

138‑25................... FHSS maximum release amount....................................... 68

138‑30................... FHSS releasable contributions amount............................. 68

138‑35................... Eligible contributions........................................................ 69

138‑40................... Associated earnings.......................................................... 71

Part 3‑30—Diverted profits tax                                                                            72

Division 145—Assessments of diverted profits tax                                          72

Guide to Division 145                                                                                              72

145‑1..................... What this Division is about............................................... 72

145‑5..................... DPT assessments—modified application of Division 155 72

145‑10................... When DPT assessments can be made............................... 73

145‑15................... Period of review of DPT assessments.............................. 73

145‑20................... Review of assessments..................................................... 74

145‑25................... Restricted DPT evidence................................................... 75

Chapter 4—Generic assessment, collection and recovery rules               78

Part 4‑1—Returns and assessments                                                                    78

Division 155—Assessments                                                                                    78

Guide to Division 155                                                                                              78

155‑1..................... What this Division is about............................................... 78

Subdivision 155‑A—Making assessments                                                          78

155‑5..................... Commissioner may make assessment............................... 79

155‑10................... Commissioner must give notice of assessment................. 80

155‑15................... Self‑assessment................................................................ 80

155‑20................... Assessment of indirect tax on importations and customs dealing             82

155‑25................... Special assessment............................................................ 83

155‑30................... Delays in making assessments.......................................... 83

Subdivision 155‑B—Amending assessments                                                      84

When Commissioner may amend assessments                                                 84

155‑35................... Amendment during period of review................................ 84

155‑40................... Amendment during period of review—certain applications taken to be notices       86

155‑45................... Amendment on application............................................... 87

155‑50................... Amendment to give effect to private ruling....................... 87

155‑55................... Amendment to give effect to certain anti‑avoidance declarations              87

155‑60................... Amendment because of review, objection or fraud........... 88

Special rules about amending amended assessments                                      88

155‑65................... Amending amended assessments...................................... 88

155‑70................... Refreshed period of review............................................... 88

General rules    89

155‑75................... Refunds of amounts overpaid........................................... 89

155‑80................... Amended assessments are assessments............................ 89

Subdivision 155‑C—Validity and review of assessments                               90

155‑85................... Validity of assessment...................................................... 90

155‑90................... Review of assessments..................................................... 90

Subdivision 155‑D—Miscellaneous                                                                     90

155‑95................... Entities.............................................................................. 90

Part 4‑15—Collection and recovery of tax‑related liabilities and other amounts           92

Division 250—Introduction                                                                                   92

Subdivision 250‑A—Guide to Part 4‑15                                                             92

250‑1..................... What this Part is about...................................................... 92

250‑5..................... Some important concepts about tax‑related liabilities........ 92

250‑10................... Summary of tax‑related liabilities...................................... 93

Subdivision 250‑B—Object of this Part                                                            102

250‑25................... Object............................................................................. 102

Division 255—General rules about collection and recovery                      103

Subdivision 255‑A—Tax‑related liabilities                                                     103

255‑1..................... Meaning of tax‑related liability....................................... 103

255‑5..................... Recovering a tax‑related liability that is due and payable 103

Subdivision 255‑B—Commissioner’s power to vary payment time          104

255‑10................... To defer the payment time............................................... 104

255‑15................... To permit payments by instalments................................. 105

255‑20................... To bring forward the payment time in certain cases........ 105

Subdivision 255‑C—Recovery proceedings                                                    106

Guide to Subdivision 255‑C                                                                                 106

255‑35................... What this Subdivision is about....................................... 106

Operative provisions                                                                                             106

255‑40................... Service of documents if person absent from Australia or cannot be found              106

255‑45................... Evidentiary certificate...................................................... 107

255‑50................... Certain statements or averments...................................... 108

255‑55................... Evidence by affidavit...................................................... 109

Subdivision 255‑D—Security deposits                                                              109

255‑100................. Commissioner may require security deposit................... 109

255‑105................. Notice of requirement to give security............................ 110

255‑110................. Offence........................................................................... 111

255‑115................. Order to comply with requirement.................................. 111

255‑120................. Offence........................................................................... 112

Division 260—Special rules about collection and recovery                        113

Guide to Division 260                                                                                            113

260‑1..................... What this Division is about............................................. 113

Subdivision 260‑A—From third party                                                              113

260‑5..................... Commissioner may collect amounts from third party...... 114

260‑10................... Notice to Commonwealth, State or Territory.................. 115

260‑15................... Indemnity........................................................................ 116

260‑20................... Offence........................................................................... 116

Subdivision 260‑B—From liquidator                                                               116

260‑40................... Subdivision does not apply to superannuation guarantee charge              117

260‑45................... Liquidator’s obligation.................................................... 117

260‑50................... Offence........................................................................... 118

260‑55................... Joint liability of 2 or more liquidators............................. 118

260‑60................... Liquidator’s other obligation or liability.......................... 119

Subdivision 260‑C—From receiver                                                                   119

260‑75................... Receiver’s obligation...................................................... 119

260‑80................... Offence........................................................................... 120

260‑85................... Joint liability of 2 or more receivers................................ 121

260‑90................... Receiver’s other obligation or liability............................ 121

Subdivision 260‑D—From agent winding up business for foreign resident principal  121

260‑105................. Obligation of agent winding up business for foreign resident principal   121

260‑110................. Offence........................................................................... 122

260‑115................. Joint liability of 2 or more agents.................................... 122

260‑120................. Agent’s other obligation or liability................................ 123

Subdivision 260‑E—From deceased person’s estate                                     123

260‑140................. Administered estate......................................................... 123

260‑145................. Unadministered estate..................................................... 124

260‑150................. Commissioner may authorise amount to be recovered.... 125

Division 263—Mutual assistance in collection of foreign tax debts          126

Subdivision 263‑A—Foreign revenue claims                                                  126

Guide to Subdivision 263‑A                                                                                 126

263‑5..................... What this Subdivision is about....................................... 126

Operative provisions                                                                                             127

263‑10................... Meaning of foreign revenue claim.................................. 127

263‑15................... Requirements for foreign revenue claims........................ 127

263‑20................... Foreign Revenue Claims Register................................... 128

263‑25................... Registering claims........................................................... 128

263‑30................... When amount is due and payable.................................... 128

263‑35................... Amending the Register etc.............................................. 129

263‑40................... Payment to competent authority...................................... 130

Division 265—Other matters                                                                              131

Subdivision 265‑A—Right of person to seek recovery or contribution    131

Guide to Subdivision 265‑A                                                                                 131

265‑35................... What this Subdivision is about....................................... 131

Operative provisions                                                                                             131

265‑40................... Right of recovery if another person is liable................... 131

265‑45................... Right of contribution if persons are jointly liable............ 132

Subdivision 265‑B—Application of laws                                                          132

265‑65................... Non‑application of certain taxation laws......................... 132

Subdivision 265‑C—Direction to pay superannuation guarantee charge 133

Guide to Subdivision 265‑C                                                                                 133

265‑85................... What this Subdivision is about....................................... 133

265‑90................... Direction to pay superannuation guarantee charge.......... 133

265‑95................... Offence........................................................................... 135

265‑100................. Variation or revocation................................................... 135

265‑105................. Effect of liability being reduced or ceasing to exist......... 136

265‑110................. Taxation objection........................................................... 137

265‑115................. Extension of period to comply if taxation objection made 137

Division 268—Estimates and recovery of PAYG withholding liabilities and superannuation guarantee charge                                                                                                       139

Guide to Division 268                                                                                            139

268‑1..................... What this Division is about............................................. 139

Subdivision 268‑A—Object                                                                                  140

268‑5..................... Object of Division.......................................................... 140

Subdivision 268‑B—Making estimates                                                             140

268‑10................... Commissioner may make estimate.................................. 140

268‑15................... Notice of estimate........................................................... 142

Subdivision 268‑C—Liability to pay estimates                                              142

268‑20................... Nature of liability to pay estimate.................................... 143

268‑25................... Accuracy of estimate irrelevant to liability to pay............ 144

268‑30................... Estimate provable in bankruptcy or winding up.............. 144

Subdivision 268‑D—Reducing and revoking estimates                                145

268‑35................... How estimate may be reduced or revoked—Commissioner’s powers     145

268‑40................... How estimate may be reduced or revoked—statutory declaration or affidavit          147

268‑45................... How estimate may be reduced or revoked—rejection of proof of debt    149

268‑50................... How estimate may be reduced—amount paid or applied 151

268‑55................... When reduction or revocation takes effect...................... 151

268‑60................... Consequences of reduction or revocation—refund......... 152

268‑65................... Consequences of reduction or revocation—statutory demand changed or set aside 152

268‑70................... Consequences of reduction or revocation—underlying liability               153

Subdivision 268‑E—Late payment of estimates                                             153

268‑75................... Liability to pay the general interest charge...................... 153

268‑80................... Effect of paying the general interest charge..................... 154

Subdivision 268‑F—Miscellaneous                                                                    155

268‑85................... Effect of judgment on liability on which it is based........ 155

268‑90................... Requirements for statutory declaration or affidavit......... 156

268‑95................... Liquidators, receivers and trustees in bankruptcy........... 159

268‑100................. Division not to limit or exclude Corporations or Bankruptcy Act            160

Division 269—Penalties for directors of non‑complying companies       161

Guide to Division 269                                                                                            161

269‑1..................... What this Division is about............................................. 161

Subdivision 269‑A—Object and scope                                                              162

269‑5..................... Object of Division.......................................................... 162

269‑10................... Scope of Division........................................................... 162

Subdivision 269‑B—Obligations and penalties                                              165

269‑15................... Directors’ obligations..................................................... 165

269‑20................... Penalty............................................................................ 166

269‑25................... Notice............................................................................. 167

269‑30................... Effect on penalty of directors’ obligation ending before end of notice period          168

269‑35................... Defences......................................................................... 172

Subdivision 269‑C—Discharging liabilities                                                    174

269‑40................... Effect of director paying penalty or company discharging liability           174

269‑45................... Directors’ rights of indemnity and contribution.............. 175

Subdivision 269‑D—Miscellaneous                                                                   175

269‑50................... How notice may be given............................................... 175

269‑52................... Copies of notices............................................................ 176

269‑55................... Division not to limit or exclude Corporations Act.......... 176

Part 4‑25—Charges and penalties                                                                     177

Division 280—Shortfall interest charge                                                           177

Guide to Division 280                                                                                            177

280‑1..................... Guide to Division 280.................................................... 177

Subdivision 280‑A—Object of Division                                                            177

280‑50................... Object of Division.......................................................... 177

Subdivision 280‑B—Shortfall interest charge                                                178

280‑100................. Liability to shortfall interest charge—income tax............ 178

280‑101................. Liability to shortfall interest charge—excess exploration credit tax          180

280‑102................. Liability to shortfall interest charge—petroleum resource rent tax            180

280‑102A.............. Liability to shortfall interest charge—excess non‑concessional contributions tax    181

280‑102B.............. Liability to shortfall interest charge—Division 293 tax... 182

280‑102C.............. Liability to shortfall interest charge—diverted profits tax 184

280‑103................. Liability to shortfall interest charge—general.................. 185

280‑105................. Amount of shortfall interest charge................................. 185

280‑110................. Notification by Commissioner........................................ 186

Subdivision 280‑C—Remitting shortfall interest charge                             186

280‑160................. Remitting shortfall interest charge................................... 186

280‑165................. Commissioner must give reasons for not remitting in certain cases         187

280‑170................. Objecting against remission decision.............................. 187

Division 284—Administrative penalties for statements, unarguable positions and schemes      188

Guide to Division 284                                                                                            188

284‑5..................... What this Division is about............................................. 188

Subdivision 284‑A—General provisions                                                          188

284‑10................... Object of Division.......................................................... 189

284‑15................... When a matter is reasonably arguable........................... 189

284‑20................... Which statements this Division applies to....................... 190

284‑25................... Statements by agents....................................................... 190

284‑30................... Application of Division to trusts..................................... 190

284‑35................... Application of Division to partnerships.......................... 190

Subdivision 284‑B—Penalties relating to statements                                    191

Guide to Subdivision 284‑B                                                                                 191

284‑70................... What this Subdivision is about....................................... 191

Operative provisions                                                                                             192

284‑75................... Liability to penalty.......................................................... 192

284‑80................... Shortfall amounts........................................................... 195

284‑85................... Amount of penalty.......................................................... 197

284‑90................... Base penalty amount....................................................... 198

284‑95................... Joint and several liability of directors of corporate trustee that makes a false or misleading statement     202

Subdivision 284‑C—Penalties relating to schemes                                        202

Guide to Subdivision 284‑C                                                                                 202

284‑140................. What this Subdivision is about....................................... 202

Operative provisions                                                                                             203

284‑145................. Liability to penalty.......................................................... 203

284‑150................. Scheme benefits and scheme shortfall amounts.............. 205

284‑155................. Amount of penalty.......................................................... 207

284‑160................. Base penalty amount: schemes....................................... 208

284‑165................. Exception—threshold for penalty arising from cross‑border transfer pricing          209

Subdivision 284‑D—Provisions common to Subdivisions 284‑B and 284‑C 210

284‑220................. Increase in base penalty amount...................................... 210

284‑224................. Reduction of base penalty amount if law was applied in an accepted way               211

284‑225................. Reduction of base penalty amount if you voluntarily tell the Commissioner            212

Subdivision 284‑E—Special rules about unarguable positions for cross‑border transfer pricing           213

284‑250................. Undocumented transfer pricing treatment not reasonably arguable          214

284‑255................. Documentation requirements.......................................... 214

Division 286—Penalties for failing to lodge documents on time               216

Subdivision 286‑A—Guide to Division 286                                                     216

286‑1..................... What this Division is about............................................. 216

Subdivision 286‑B—Object of Division                                                            216

286‑25................... Object of Division.......................................................... 216

Subdivision 286‑C—Penalties for failing to lodge documents on time    217

286‑75................... Liability to penalty.......................................................... 217

286‑80................... Amount of penalty.......................................................... 219

Division 288—Miscellaneous administrative penalties                                223

288‑10................... Penalty for non‑electronic notification............................ 223

288‑20................... Penalty for non‑electronic payment................................. 224

288‑25................... Penalty for failure to keep or retain records.................... 224

288‑30................... Penalty for failure to retain or produce declarations........ 225

288‑35................... Penalty for preventing access etc.................................... 225

288‑40................... Penalty for failing to register or cancel registration......... 226

288‑45................... Penalty for failing to issue tax invoice etc....................... 226

288‑46................... Penalty for failing to ensure tax information about supplies of low value goods is included in customs documents....................................................................... 226

288‑50................... Penalty for both principal and agent issuing certain documents               227

288‑70................... Administrative penalties for life insurance companies.... 227

288‑75................... Administrative penalty for a copyright or resale royalty collecting society               229

288‑80................... Administrative penalty for over declaring conduit foreign income           229

288‑85................... Failure by Reporting Financial Institution to obtain self‑certification       230

288‑95................... Failing to comply etc. with release authority................... 231

288‑100................. Excess money paid under release authority..................... 232

288‑105................. Superannuation provider to calculate crystallised pre‑July 83 amount of superannuation interest by 30 June 2008................................................................................ 232

288‑110................. Contravention of superannuation data and payment regulation or standard              233

288‑115................. AMIT under or over resulting from intentional disregard of or recklessness as to taxation law              234

288‑120................. Prohibited offsets of liabilities using interest etc. accrued on farm management deposits        236

288‑125................. Producing or supplying electronic sales suppression tools 237

288‑130................. Possessing electronic sales suppression tools................. 237

288‑135................. Incorrectly keeping records using electronic sales suppression tools       238

Division 290—Promotion and implementation of schemes                        239

Subdivision 290‑A—Preliminary                                                                       239

290‑5..................... Objects of this Division.................................................. 239

290‑10................... Extra‑territorial application.............................................. 239

Subdivision 290‑B—Civil penalties                                                                   239

290‑50................... Civil penalties................................................................. 240

290‑55................... Exceptions...................................................................... 242

290‑60................... Meaning of promoter..................................................... 244

290‑65................... Meaning of tax exploitation scheme................................ 244

Subdivision 290‑C—Injunctions                                                                         245

290‑120................. Conduct to which this Subdivision applies..................... 246

290‑125................. Injunctions...................................................................... 246

290‑130................. Interim injunctions.......................................................... 246

290‑135................. Delay in making ruling................................................... 246

290‑140................. Discharge etc. of injunctions........................................... 247

290‑145................. Certain limits on granting injunctions not to apply.......... 247

290‑150................. Other powers of the Federal Court unaffected................ 248

Subdivision 290‑D—Voluntary undertakings                                                 248

290‑200................. Voluntary undertakings.................................................. 248

Division 295—Miscellaneous civil penalties                                                   249

Subdivision 295‑B—Civil penalty for possession of tobacco without relevant documentation 249

Guide to Subdivision 295‑B                                                                                 249

295‑70................... What this Subdivision is about....................................... 249

295‑75................... Possession of tobacco without relevant documentation etc. 250

295‑80................... Things treated as tobacco................................................ 252

Division 298—Machinery provisions for penalties                                       253

Subdivision 298‑A—Administrative penalties                                                253

298‑5..................... Scope of Subdivision...................................................... 253

298‑10................... Notification of liability.................................................... 253

298‑15................... Due date for penalty........................................................ 254

298‑20................... Remission of penalty...................................................... 254

298‑25................... General interest charge on unpaid penalty....................... 254

298‑30................... Assessment of penalties under Division 284 or section 288‑115             255

Subdivision 298‑B—Civil penalties                                                                   255

298‑80................... Application of Subdivision............................................. 255

298‑85................... Civil evidence and procedure rules for civil penalty orders 256

298‑90................... Civil proceedings after criminal proceedings.................. 256

298‑95................... Criminal proceedings during civil proceedings............... 256

298‑100................. Criminal proceedings after civil proceedings.................. 256

298‑105................. Evidence given in proceedings for penalty not admissible in criminal proceedings  257

298‑110................. Civil double jeopardy...................................................... 257

Part 4‑30—Offences and prosecutions                                                            258

Division 308—Offences relating to tobacco                                                    258

Guide to Division 308                                                                                            258

308‑1..................... What this Division is about............................................. 258

Subdivision 308‑A—Reasonable suspicion offences relating to tobacco 258

Guide to Subdivision 308‑A                                                                                 258

308‑5..................... What this Subdivision is about....................................... 258

308‑10................... Possession of tobacco (500 kilograms or above)—reasonable suspicion offence    259

308‑15................... Possession of tobacco (100 kilograms or above)—reasonable suspicion offence    262

308‑20................... Possession of tobacco (5 kg or above)—reasonable suspicion offence   265

308‑25................... Sale of tobacco (500 kilograms or above)—reasonable suspicion offence               267

308‑30................... Sale of tobacco (100 kilograms or above)—reasonable suspicion offence               270

308‑35................... Sale of tobacco (5 kg or above)—reasonable suspicion offence              272

308‑40................... Buying of tobacco (500 kilograms or above)—reasonable suspicion offence          275

308‑45................... Buying of tobacco (100 kilograms or above)—reasonable suspicion offence          278

308‑50................... Buying of tobacco (5 kg or above)—reasonable suspicion offence         280

308‑55................... Matters taken to satisfy “reasonable to suspect” requirement 283

Subdivision 308‑B—Fault‑based offences of possession, production and manufacture              285

Guide to Subdivision 308‑B                                                                                 285

308‑105................. What this Subdivision is about....................................... 285

308‑110................. Possession of tobacco (500 kg or above)—fault‑based offence               286

308‑115................. Possession of tobacco (100 kg or above)—fault‑based offence               288

308‑120................. Possession of tobacco (5 kg or above)—fault‑based offence.. 291

308‑125................. Manufacture or production of tobacco (500 kg or above)—fault‑based offence      293

308‑130................. Manufacture or production of tobacco (100 kg or above)—fault‑based offence      295

308‑135................. Manufacture or production of tobacco (5 kg or above)—fault‑based offence          297

Subdivision 308‑C—Offences relating to equipment relating to the manufacture or production of tobacco        300

Guide to Subdivision 308‑C                                                                                 300

308‑200................. What this Subdivision is about....................................... 300

308‑205................. Possession of equipment for use in illegal manufacture or production of tobacco   300

308‑210................. Possession of equipment designed or adapted to manufacture or produce tobacco  301

Subdivision 308‑E—Other provisions                                                              302

Guide to Subdivision 308‑E                                                                                 302

308‑500................. What this Subdivision is about....................................... 302

308‑505................. Things treated as tobacco................................................ 303

308‑510................. Matters treated as possession.......................................... 303

308‑515................. Where excise duty or customs duty is treated as not payable for the purpose of the reasonable suspicion offences.......................................................................... 303

308‑520................. Section 8ZD does not apply to this Division.................. 304

Part 4‑50—Release from particular liabilities                                            305

Division 340Commissioner’s power in cases of hardship                        305

Guide to Division 340                                                                                            305

340‑1..................... What this Division is about............................................. 305

Operative provisions                                                                                             305

340‑5..................... Release from particular liabilities in cases of serious hardship 305

340‑10................... Liabilities to which this section applies........................... 307

340‑15................... Commissioner may take action to give effect to a release decision           308

340‑20................... Extinguishing your liability to pay a fringe benefits tax instalment if you are released             309

340‑25................... Extinguishing your liability to pay a PAYG instalment if you are released              309

Division 342Commissioner’s power relating to proceeds of crime proceedings       311

Guide to Division 342                                                                                            311

342‑1..................... What this Division is about............................................. 311

Subdivision 342‑A—Power to waive right to payment of tax‑related liabilities            311

342‑5..................... Object of this Subdivision.............................................. 311

342‑10................... Power to waive right to payment of tax‑related liability.. 312

Part 4‑90—Evidence                                                                                                 314

Division 350—Evidence                                                                                       314

Guide to Division 350                                                                                            314

350‑1..................... What this Division is about............................................. 314

Subdivision 350‑A—Evidence                                                                             314

350‑5..................... Application of Subdivision............................................. 314

350‑10................... Evidence......................................................................... 314

350‑15................... Judicial notice of signature.............................................. 317

Chapter 5—Administration                                                                                         318

Part 5‑1—The Australian Taxation Office                                                   318

Division 352—Commissioner’s reporting obligations                                 318

Guide to Division 352                                                                                            318

352‑1..................... What this Division is about............................................. 318

Subdivision 352‑A—Accountability of the Commissioner in respect of indirect tax laws           318

352‑5..................... Commissioner must prepare annual report on indirect tax laws               318

Subdivision 352‑C—Reporting on working holiday makers                      319

352‑25................... Commissioner must prepare annual report on working holiday makers   319

Division 353—Powers to obtain information and evidence                        320

Guide to Division 353                                                                                            320

353‑1..................... What this Division is about............................................. 320

Subdivision 353‑A—Powers to obtain information and evidence             320

353‑10................... Commissioner’s power................................................... 320

353‑15................... Access to premises, documents etc................................. 321

353‑20................... Checking status of specifically listed deductible gift recipients                322

Subdivision 353‑B—Powers to obtain information and evidence from overseas          324

353‑25................... Offshore information notices.......................................... 324

353‑30................... Offshore information notices—consequence of not complying               326

Division 354—Power to obtain information about rights or interests in property       328

354‑5..................... Power to obtain information about rights or interests in property            328

Division 355—Confidentiality of taxpayer information                             330

Guide to Division 355                                                                                            330

355‑1..................... What this Division is about............................................. 330

Subdivision 355‑A—Objects and application of Division                            331

355‑10................... Objects of Division......................................................... 331

355‑15................... Application of Division.................................................. 331

Subdivision 355‑B—Disclosure of protected information by taxation officers             332

Guide to Subdivision 355‑B                                                                                 332

355‑20................... What this Subdivision is about....................................... 332

Operative provisions                                                                                             332

355‑25................... Offence—disclosure of protected information by taxation officers          332

355‑30................... Meaning of protected information and taxation officer... 334

355‑35................... Consent is not a defence................................................. 334

355‑40................... Generality of Subdivision not limited............................. 334

355‑45................... Exception—disclosure of publicly available information 335

355‑47................... Exception—disclosure of periodic aggregate tax information  335

355‑50................... Exception—disclosure in performing duties................... 335

355‑55................... Exception—disclosure to Ministers................................ 338

355‑60................... Limits on disclosure to Ministers.................................... 340

355‑65................... Exception—disclosure for other government purposes.. 341

355‑70................... Exception—disclosure for law enforcement and related purposes           355

355‑75................... Limits on disclosure to courts and tribunals.................... 361

Subdivision 355‑C—On‑disclosure of protected information by other people               361

Guide to Subdivision 355‑C                                                                                 361

355‑150................. What this Subdivision is about....................................... 361

Operative provisions                                                                                             362

355‑155................. Offence—on‑disclosure of protected information by other people           362

355‑160................. Consent is not a defence................................................. 362

355‑165................. Generality of Subdivision not limited............................. 363

355‑170................. Exception—on‑disclosure of publicly available information 363

355‑172................. Exception—disclosure of periodic aggregate tax information  363

355‑175................. Exception—on‑disclosure for original purpose.............. 363

355‑180................. Exception—on‑disclosure to Ministers in relation to statutory powers or functions                365

355‑182................. Exception—on‑disclosure of certain information to Commonwealth Ombudsman  365

355‑185................. Exception—on‑disclosure in relation to IGIS................. 366

355‑190................. Exception—on‑disclosure in relation to ASIO............... 367

355‑195................. Exception—on‑disclosure by Royal Commissions......... 368

355‑200................. Exception—records made in compliance with Australian laws                368

355‑205................. Limits on on‑disclosure to courts or tribunals................. 369

355‑210................. Limits on on‑disclosure to Ministers.............................. 369

Subdivision 355‑D—Disclosure of protected information that has been unlawfully acquired   370

Guide to Subdivision 355‑D                                                                                 370

355‑260................. What this Subdivision is about....................................... 370

Operative provisions                                                                                             370

355‑265................. Offence—disclosure of protected information acquired in breach of a taxation law 370

355‑270................. Exception—disclosure of publicly available information 371

355‑275................. Exception—disclosure in relation to a taxation law......... 371

355‑280................. Limits on disclosure to courts and tribunals.................... 371

Subdivision 355‑E—Other matters                                                                    372

Guide to Subdivision 355‑E                                                                                 372

355‑320................. What this Subdivision is about....................................... 372

Operative provisions                                                                                             372

355‑325................. Oath or affirmation to protect information...................... 372

355‑330................. Injunctions to prevent contravention of non‑disclosure provisions          373

355‑335................. Procedures for disclosing protected information............. 374

Division 356—General administration of tax laws                                       376

Guide to Division 356                                                                                            376

356‑1..................... What this Division is about............................................. 376

Subdivision 356‑A—Indirect tax laws                                                               376

356‑5..................... Commissioner has general administration of indirect tax laws 376

Subdivision 356‑B—Major bank levy                                                               376

356‑10................... Commissioner has general administration of major bank levy 376

Part 5‑5—Rulings                                                                                                       377

Division 357—Object and common rules                                                         377

Guide to Division 357                                                                                            377

357‑1..................... What this Division is about............................................. 377

Subdivision 357‑A—Object of this Part                                                            377

357‑5..................... Object of this Part........................................................... 378

Subdivision 357‑B—Common rules for rulings                                             379

Rules for all rulings                                                                                               379

357‑50................... Scope of Division........................................................... 379

357‑55................... The provisions that are relevant for rulings..................... 380

357‑60................... When rulings are binding on the Commissioner............. 380

357‑65................... Stopping relying on a ruling........................................... 383

357‑70................... Commissioner may apply the law if more favourable than the ruling       384

357‑75................... Inconsistent rulings......................................................... 384

357‑80................... Contracts for schemes..................................................... 386

357‑85................... Effect on ruling if relevant provision re‑enacted............. 386

357‑90................... Validity of ruling not affected by formal defect.............. 386

Common rules for public and private rulings                                                387

357‑95................... Electronic communications............................................. 387

357‑100................. Evidence......................................................................... 387

Common rules for private and oral rulings                                                    387

357‑105................. Further information must be sought................................ 387

357‑110................. Assumptions in making private or oral ruling................. 388

357‑115................. Additional information provided by applicant................. 388

357‑120................. Commissioner may take into account information from third parties       388

357‑125................. Applications and objections not to affect obligations and powers            389

Division 358—Public rulings                                                                              390

Guide to Division 358                                                                                            390

358‑1..................... What this Division is about............................................. 390

Making public rulings                                                                                           390

358‑5..................... What is a public ruling?.................................................. 390

358‑10................... Application of public rulings.......................................... 391

358‑15................... When a public ruling ceases to apply.............................. 391

Withdrawing public rulings                                                                                 392

358‑20................... Withdrawing public rulings............................................ 392

Division 359—Private rulings                                                                            393

Guide to Division 359                                                                                            393

359‑1..................... What this Division is about............................................. 393

Private rulings 394

359‑5..................... Private rulings................................................................. 394

359‑10................... Applying for a private ruling.......................................... 394

359‑15................... Private rulings to be given to applicants.......................... 394

359‑20................... Private rulings must contain certain details..................... 394

359‑25................... Time of application of private rulings............................. 395

359‑30................... Ruling for trustee of a trust............................................. 395

359‑35................... Dealing with applications................................................ 396

359‑40................... Valuations....................................................................... 396

359‑45................... Related rulings................................................................ 397

359‑50................... Delays in making private rulings.................................... 398

359‑55................... Revised private rulings................................................... 399

359‑60................... Objections, reviews and appeals relating to private rulings 400

359‑65................... Commissioner may consider new information on objection 401

359‑70................... Successful objection decision alters ruling...................... 401

Division 360—Oral rulings                                                                                 402

Guide to Division 360                                                                                            402

360‑1..................... What this Division is about............................................. 402

Oral rulings      402

360‑5..................... Applying for and making of oral rulings........................ 402

360‑10................... Withdrawing an application for an oral ruling................. 404

360‑15................... Commissioner determinations......................................... 404

Division 361—Non‑ruling advice and general administrative practice  405

361‑5..................... Non‑ruling advice and general administrative practice.... 405

Division 362—Rulings by Innovation and Science Australia that activities are not ineligible activities                406

Guide to Division 362                                                                                            406

362‑1..................... What this Division is about............................................. 406

Public rulings by Innovation and Science Australia                                     407

362‑5..................... Innovation and Science Australia may make public rulings on a specified class of activities   407

362‑10................... Application of public rulings.......................................... 408

362‑15................... When a public ruling ceases to apply.............................. 408

362‑20................... Withdrawing public rulings............................................ 408

Private rulings by Innovation and Science Australia                                   408

362‑25................... Innovation and Science Australia may make private rulings on a specified activity 408

362‑30................... Applying for a private ruling.......................................... 409

362‑35................... Innovation and Science Australia must give notice of its decision           409

362‑40................... Private rulings must contain certain details..................... 410

362‑45................... Application of private rulings......................................... 410

362‑50................... Delays in making private rulings.................................... 410

362‑55................... When a private ruling ceases to apply............................. 412

362‑60................... Withdrawing private rulings........................................... 412

General provisions                                                                                                 412

362‑65................... When rulings are binding on the Commissioner and Innovation and Science Australia           412

362‑70................... Application of common rules under Subdivision 357‑B. 413

362‑75................... Application of Divisions 358 and 359............................ 413

Part 5‑10—Commissioner’s remedial power                                               414

Division 370—Commissioner’s remedial power                                            414

Guide to Division 370                                                                                            414

370‑1..................... What this Division is about............................................. 414

Subdivision 370‑A—Commissioner’s remedial power                                 415

370‑5..................... Commissioner’s remedial power.................................... 415

370‑10................... Intended purpose or object.............................................. 416

370‑15................... Repeal of determinations................................................. 417

370‑20................... Commencement of determinations.................................. 417

Part 5‑25—Record‑keeping and other obligations relating to taxpayers            418

Division 382—Record‑keeping                                                                           418

Guide to Division 382                                                                                            418

382‑1..................... What this Division is about............................................. 418

Subdivision 382‑A—Keeping records of indirect tax transactions           418

382‑5..................... Keeping records of indirect tax transactions.................... 418

Subdivision 382‑B—Record keeping obligations of deductible gift recipients               422

382‑15................... Deductible gift recipients to keep records....................... 422

Division 384—Education directions                                                                  424

Guide to Division 384                                                                                            424

384‑5..................... What this Division is about............................................. 424

384‑10................... When an education direction may be given..................... 424

384‑15................... Education direction......................................................... 425

384‑20................... Approval of courses of education................................... 426

384‑25................... Costs of course of education........................................... 427

384‑30................... Variation or revocation on Commissioner’s own initiative 427

384‑35................... Variation on request........................................................ 427

384‑40................... Taxation objection........................................................... 428

Division 388—Requirements about giving material to the Commissioner 429

Subdivision 388‑A—Object of Division                                                            429

388‑5..................... Object of Division.......................................................... 429

Subdivision 388‑B—General provisions                                                          429

388‑50................... Approved forms............................................................. 429

388‑52................... Saturdays, Sundays and public holidays......................... 430

388‑55................... Commissioner may defer time for lodgment................... 430

388‑60................... Declaration by entity....................................................... 431

388‑65................... Declaration by entity where agent gives document......... 431

388‑70................... Declaration by agent....................................................... 432

388‑75................... Signing declarations........................................................ 432

388‑80................... Electronic notification of BAS amounts.......................... 433

388‑85................... Truncating amounts........................................................ 433

Division 389—Reporting by employers                                                           434

Guide to Division 389                                                                                            434

389‑1..................... What this Division is about............................................. 434

389‑5..................... Required reporting by employers.................................... 434

389‑10................... Exemptions..................................................................... 436

389‑15................... Voluntary reporting by employers.................................. 437

389‑20................... Effect on reporting requirements under Subdivision 16‑C 437

389‑25................... Grace periods for correcting false or misleading notifications  438

Division 390Superannuation reporting                                                        440

Guide to Division 390                                                                                            440

390‑1..................... What this Division is about............................................. 440

Subdivision 390‑A—Member information statements and roll‑over superannuation benefit statements               440

390‑5..................... Member information statements...................................... 440

390‑7..................... Grace periods for correcting false or misleading member information statements    443

390‑10................... Statements about roll‑over superannuation benefits etc... 444

390‑12................... Statements about benefits paid to KiwiSaver schemes.... 446

390‑15................... Superannuation statements to members.......................... 447

390‑20................... Statements relating to holders of certain life insurance policies                448

Subdivision 390‑BStatements relating to release authorities                 449

390‑65................... Statements relating to release authorities......................... 449

Subdivision 390‑COther statements                                                              451

390‑115................. Change or omission in information given to the Commissioner               451

Division 392—Employee share scheme reporting                                         452

Guide to Division 392                                                                                            452

392‑1..................... What this Division is about............................................. 452

Subdivision 392‑A—Statements                                                                          452

392‑5..................... Statements by providers.................................................. 452

392‑10................... Change or omission in information given to the Commissioner               455

Subdivision 392‑B—Miscellaneous                                                                   456

392‑15................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997  456

Division 393—Reports by investment bodies                                                  457

Guide to Division 393                                                                                            457

393‑1..................... What this Division is about............................................. 457

393‑5..................... Reports about quoting tax file numbers and ABNs........ 457

393‑10................... Annual investment income reports.................................. 458

393‑15................... Errors in reports.............................................................. 459

Division 394Reporting about forestry managed investment schemes  460

Guide to Division 394                                                                                            460

394‑1..................... What this Division is about............................................. 460

394‑5..................... Statements about initial contributions to scheme............. 460

394‑10................... Statements about failure to establish trees within 18 months 461

Division 396—Third party reporting                                                               463

Guide to Division 396                                                                                            463

396‑1A.................. What this Division is about............................................. 463

Subdivision 396‑A—FATCA                                                                               463

Guide to Subdivision 396‑A                                                                                 463

396‑1..................... What this Subdivision is about....................................... 463

Operative provisions                                                                                             464

396‑5..................... Statements about U.S. Reportable Accounts................... 464

396‑10................... Statements about payments to Nonparticipating Financial Institutions     465

396‑15................... Meaning of the FATCA Agreement................................. 466

396‑20................... Permissions and elections............................................... 466

396‑25................... Record keeping............................................................... 467

Subdivision 396‑B—Information about transactions that could have tax consequences for taxpayers  468

Guide to Subdivision 396‑B                                                                                 468

396‑50................... What this Subdivision is about....................................... 468

Operative provisions                                                                                             468

396‑55................... Reporting tax‑related information about transactions to the Commissioner              468

396‑60................... Information required....................................................... 472

396‑65................... Exemptions—wholesale clients...................................... 473

396‑70................... Exemptions—other cases................................................ 474

396‑75................... Errors in reports.............................................................. 474

Subdivision 396‑C—Common Reporting Standard                                      475

Guide to Subdivision 396‑C                                                                                 475

396‑100................. What this Subdivision is about....................................... 475

Operative provisions                                                                                             476

396‑105................. Statements about Reportable Accounts........................... 476

396‑110................. Meaning of CRS............................................................. 477

396‑115................. Matters Common Reporting Standard leaves to domestic law 478

396‑120................. Application of Common Reporting Standard.................. 479

396‑125................. Record keeping............................................................... 480

396‑130................. Anti‑avoidance provisions.............................................. 481

396‑135................. Application of penalty to false or misleading self‑certification 483

396‑136................. Report on Reportable Accounts maintained by Australian Reporting Financial Institutions    483

Division 398—Miscellaneous reporting obligations                                     485

Guide to Division 398                                                                                            485

398‑1..................... What this Division is about............................................. 485

Subdivision 398‑A—Farm Management Deposit reporting                        485

398‑5..................... Reporting to Agriculture Department.............................. 485

Part 5‑30—Payment, ABN and identification verification system   487

Division 400—Guide to Part 5‑30                                                                      487

400‑1..................... What Part 5‑30 is about.................................................. 487

400‑5..................... The payment, ABN and identification verification system 487

Division 405—Transaction reporting by purchasers                                   488

405‑5..................... Payments to which this Division applies........................ 488

405‑10................... Reporting requirements................................................... 488

405‑15................... Invoices produced by purchasers.................................... 489

Division 410—Transaction reporting by suppliers                                       490

410‑5..................... Payments to which this Division applies........................ 490

410‑10................... Reporting requirements................................................... 490

410‑15................... Invoices produced by purchasers.................................... 491

Division 415—Verification of suppliers’ ABNs by purchasers                  492

415‑5..................... Payments to which this Division applies........................ 492

415‑10................... ABN verification requirements....................................... 492

415‑15................... Method of obtaining ABN verification........................... 493

415‑20................... Verification applies to later payments............................. 493

Division 417—Verification of suppliers’ identities by purchasers            494

417‑5..................... Payments to which this Division applies........................ 494

417‑10................... Identity verification requirements.................................... 494

417‑15................... Method of obtaining identity verification........................ 495

417‑20................... Verification applies to later payments............................. 495

Division 420—Penalties for not reporting or verifying                               496

420‑5..................... Failing to report or verify: administrative penalty........... 496

Division 425—Other matters                                                                              497

425‑20................... Constructive payment..................................................... 497

425‑25................... Non‑cash benefits........................................................... 497

Part 5‑35—Registration and similar processes for various taxes    498

Division 426—Process of endorsing charities and other entities               498

Guide to Division 426                                                                                            498

426‑1..................... What this Division is about............................................. 498

Subdivision 426‑A—Application of Subdivision 426‑B to various kinds of endorsement           499

426‑5..................... Application of Subdivision 426‑B to various kinds of endorsement        499

426‑10................... How Subdivision 426‑B applies to government entities in relation to endorsement under section 30‑120 of the Income Tax Assessment Act 1997................................... 500

Subdivision 426‑B—Process of endorsement etc.                                          500

426‑15................... Applying for endorsement.............................................. 501

426‑20................... Dealing with an application for endorsement.................. 501

426‑25................... Notifying outcome of application for endorsement......... 502

426‑30................... Date of effect of endorsement......................................... 503

426‑35................... Review of refusal of endorsement.................................. 503

426‑40................... Checking entitlement to endorsement.............................. 503

426‑45................... Telling Commissioner of loss of entitlement to endorsement 504

426‑50................... Partnerships and unincorporated bodies......................... 505

426‑55................... Revoking endorsement................................................... 505

426‑60................... Review of revocation of endorsement............................. 506

Subdivision 426‑C—Entries on Australian Business Register                    507

426‑65................... Entries on Australian Business Register......................... 507

Subdivision 426‑D—Public and private ancillary funds                              508

Guide to Subdivision 426‑D                                                                                 508

426‑100................. What this Subdivision is about....................................... 508

Public ancillary funds                                                                                           510

426‑102................. Public ancillary funds..................................................... 510

426‑103................. Public ancillary fund guidelines...................................... 510

426‑104................. Australian Business Register must show public ancillary fund status      511

Private ancillary funds                                                                                         511

426‑105................. Private ancillary funds.................................................... 511

426‑110................. Private ancillary fund guidelines..................................... 512

426‑115................. Australian Business Register must show private ancillary fund status     512

Administrative penalties                                                                                       513

426‑120................. Administrative penalties for trustees of ancillary funds.. 513

Suspension and removal of trustees                                                                   514

426‑125................. Suspension or removal of trustees.................................. 514

426‑130................. Commissioner to appoint acting trustee in cases of suspension or removal             516

426‑135................. Terms and conditions of appointment of acting trustee... 517

426‑140................. Termination of appointment of acting trustee.................. 517

426‑145................. Resignation of acting trustee........................................... 517

426‑150................. Property vesting orders................................................... 518

426‑155................. Powers of acting trustee.................................................. 518

426‑160................. Commissioner may give directions to acting trustee....... 519

426‑165................. Property vested in acting trustee—former trustees’ obligations relating to books, identification of property and transfer of property......................................................... 519

Transfers between ancillary funds                                                                    521

426‑170................. Ancillary funds must not provide funds to other ancillary funds             521

Part 5‑45—Application of taxation laws to certain entities                 522

Division 444—Obligations of entities on behalf of other entities              522

Guide to Division 444                                                                                            522

444‑1..................... What this Division is about............................................. 522

Subdivision 444‑A—Unincorporated associations and bodies and companies               522

444‑5..................... Unincorporated associations and bodies......................... 522

444‑10................... Public officers of companies........................................... 523

444‑15................... Notifying and serving companies................................... 524

Subdivision 444‑B—Partnerships                                                                      524

444‑30................... Partnerships.................................................................... 524

Subdivision 444‑C—Superannuation funds                                                     525

444‑50................... Superannuation funds..................................................... 525

Subdivision 444‑D—Incapacitated entities                                                      526

444‑70................... Representatives of incapacitated entities.......................... 526

Subdivision 444‑E—Indirect tax specific entities                                          527

444‑80................... GST joint ventures.......................................................... 527

444‑85................... Non‑profit sub‑entities.................................................... 530

444‑90................... GST groups.................................................................... 530

Division 446—Local governing bodies                                                            534

Guide to Division                                                                                                    534

446‑1..................... What this Division is about............................................. 534

Operative provisions                                                                                             534

446‑5..................... Requirements for unanimous resolutions by local governing bodies       534

Part 5‑100—Miscellaneous                                                                                    538

Division 850—Transactions exempt from application of taxation laws 538

Subdivision 850‑A—Declaration relating to security or intelligence agency 538

850‑100................. Declaration relating to security or intelligence agency..... 538

Division 990—Miscellaneous                                                                              541

Subdivision 990‑A—Combining notices                                                           541

990‑5..................... Commissioner may combine notices............................... 541


Schedule 1Collection and recovery of income tax and other liabilities

Chapter 3Collection, recovery and administration of other taxes

Part 3‑10Indirect taxes

Division 105General rules for indirect taxes

Table of Subdivisions

             Guide to Division 105

105‑D   General interest charge and penalties

105‑F    Indirect tax refund schemes

105‑G   Other administrative provisions

Guide to Division 105

105‑1  What this Division is about

This Division contains rules relating to the administration of the indirect tax laws.

                   Note 1:          Administration rules relevant to particular indirect tax laws are in Divisions 110, 111 and 112.

                   Note 2:          For assessment of assessable amounts under indirect tax laws, see Division 155.

The rules in this Division deal with the following:

               (c)     limits on credits, refunds and recovering amounts;

               (e)     the effect of not passing on refunds of overpaid amounts;

               (f)     charges and penalties;

              (h)     refunding indirect tax because of Australia’s international obligations;

               (i)     requirements for notifications.

Subdivision 105‑DGeneral interest charge and penalties

Table of sections

105‑80      General interest charge

105‑85      Amending Acts cannot impose penalties or general interest charge earlier than 28 days after Royal Assent

105‑80  General interest charge

             (1)  If any of an amount (the liability) to which this section applies remains unpaid after the time by which it is due to be paid, you are liable to pay the *general interest charge on the unpaid amount of the liability for each day in the period that:

                     (a)  started at the beginning of the day by which the liability was due to be paid; and

                     (b)  finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

                              (i)  the liability;

                             (ii)  general interest charge on any of the liability.

Note:          The general interest charge is worked out under Division 1 of Part IIA.