Taxation Administration Act 1953

No. 1, 1953

Compilation No. 166

Compilation date:                              24 March 2020

Includes amendments up to:            Act No. 22, 2020

Registered:                                         2 April 2020

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

 

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 24 March 2020 (the compilation date).

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

Uncommenced amendments

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

Application, saving and transitional provisions for provisions and amendments

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

Editorial changes

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

Modifications

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

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

  

  

  

Contents

Part I—Preliminary                                                                                                              1

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

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

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

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

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

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

Part IA—Administration                                                                                                   5

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

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

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

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

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

3F.......................... Reporting of information about junior minerals exploration incentive offset            11

3G......................... Electronic invoicing.......................................................... 11

Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation                                                                                                                  13

4............................ Commissioner and Second Commissioners of Taxation... 13

4A......................... Statutory Agency etc. for purposes of Public Service Act 13

5............................ Tenure of Commissioner and Second Commissioners..... 13

5A......................... Remuneration and allowances of Commissioner and Second Commissioners         13

6............................ Leave of absence............................................................... 14

6A......................... Resignation....................................................................... 14

6B.......................... Acting appointments......................................................... 14

6C.......................... Suspension and removal from office of Commissioner or Second Commissioner  15

6D......................... Powers of Second Commissioner..................................... 17

7............................ Deputy Commissioners of Taxation................................. 17

8............................ Delegation......................................................................... 18

Part IIA—The general interest charge                                                                   19

8AAA................... Overview.......................................................................... 19

8AAB.................... When the general interest charge applies........................... 19

8AAC.................... Amount of the general interest charge............................... 25

8AAD................... What is the general interest charge rate?......................... 26

8AAE.................... When the charge is due and payable................................. 26

8AAF.................... Notification by Commissioner.......................................... 27

8AAG................... Remission of the charge.................................................... 27

8AAGA................ Rounding of the charge..................................................... 28

8AAH................... Judgment for payment of an unpaid amount..................... 28

Part IIB—Running balance accounts, application of payments and credits, and related matters          29

Division 1—Preliminary                                                                                            29

8AAZA................. Definitions........................................................................ 29

8AAZB................. Trustee to be treated as separate entity for each capacity... 31

Division 2—Running Balance Accounts (or RBAs)                                    32

8AAZC................. Establishment of RBAs.................................................... 32

8AAZD................. Allocation of tax debts to RBAs....................................... 32

8AAZF.................. General interest charge on RBA deficit debt..................... 33

8AAZG................. RBA statements................................................................ 33

8AAZH................. Liability for RBA deficit debt........................................... 33

8AAZI................... RBA statement to be evidence.......................................... 34

8AAZJ.................. Evidentiary certificate about RBA transactions etc............ 34

Division 3—Treatment of payments, credits and RBA surpluses       36

8AAZL.................. Amounts covered by this Division................................... 36

8AAZLA............... Method 1—allocating the amount first to an RBA............ 37

8AAZLB............... Method 2—applying the amount first against a non‑RBA tax debt          37

8AAZLC............... RBA surplus and related credits must remain equivalent if one or the other is applied            38

8AAZLD............... Special priority credits...................................................... 38

8AAZLE............... Instructions to Commissioner not binding........................ 39

Division 3A—Refunds of RBA surpluses and credits                                40

8AAZLF............... Commissioner must refund RBA surpluses and credits... 40

8AAZLG............... Retaining refunds until information or notification given.. 41

8AAZLGA............ Retaining refunds while Commissioner verifies information 41

8AAZLGB............ Retaining refunds until notification under Division 389 or ascertainment of liability               44

8AAZLH............... How refunds are made...................................................... 46

Division 4—Miscellaneous provisions about tax debts                             47

8AAZM................ When payments are treated as received............................. 47

8AAZMA............. Electronic payment of tax debts........................................ 47

8AAZMB.............. Saturdays, Sundays and public holidays........................... 47

8AAZN................. Overpayments made by the Commissioner under taxation laws              48

Part III—Prosecutions and offences                                                                        49

Division 1—Preliminary                                                                                            49

8A......................... Interpretation..................................................................... 49

8AC....................... Application of Part to the Tax Agent Services Act 2009.... 50

Division 2—Offences                                                                                                   51

Subdivision A—Failure to comply with taxation requirements                   51

8B.......................... Interpretation..................................................................... 51

8C.......................... Failure to comply with requirements under taxation law... 52

8D......................... Failure to answer questions when attending before the Commissioner etc.              53

8E.......................... Penalties for failure to comply with requirements under taxation law      54

8F.......................... Election to treat offence otherwise than as prescribed taxation offence    54

8G......................... Order to comply with requirement.................................... 55

8H......................... Penalty for failure to comply with order to comply........... 55

8HA...................... Court may order payment of amount in addition to penalty 56

Subdivision B—Offences relating to statements, records and certain other Acts          56

8J........................... Interpretation..................................................................... 56

8K.......................... False or misleading statements.......................................... 63

8L.......................... Incorrectly keeping records etc......................................... 65

8M......................... Penalties for offences against subsections 8K(1) and (1B) and 8L(1) and (1A)      66

8N......................... Recklessly making false or misleading statements............ 66

8Q......................... Recklessly incorrectly keeping records etc........................ 68

8R.......................... Penalties for offences against sections 8N and 8Q........... 68

8S.......................... Election to treat offence otherwise than as prescribed taxation offence    69

8T.......................... Incorrectly keeping records with intention of deceiving or misleading etc.              69

8U......................... Falsifying or concealing identity with intention of deceiving or misleading etc.       70

8V......................... Penalties for offences against sections 8T and 8U............ 71

8W......................... Court may order payment of amount in addition to penalty 71

Subdivision BAA—Offences relating to electronic sales suppression tools 75

8WAA................... Object of this Subdivision................................................ 75

8WAB................... Interpretation..................................................................... 75

8WAC................... Producing or supplying electronic sales suppression tools 76

8WAD................... Possessing electronic sales suppression tools................... 77

8WAE................... Incorrectly keeping records using electronic sales suppression tools       77

Subdivision BA—Offences relating to tax file numbers                                78

8WA...................... Unauthorised requirement etc. that tax file number be quoted  78

8WB...................... Unauthorised recording etc. of tax file number................. 79

8WC...................... Conducting affairs so as to avoid tax file number requirements               80

Subdivision C—Miscellaneous                                                                              82

8XA...................... Unauthorised access to taxation records........................... 82

8Y......................... Liability of officers etc. of corporations............................ 82

8Z.......................... Evidentiary certificate relating to previous convictions..... 83

Division 3—Prosecution of taxation offences                                                85

8ZA....................... Prosecution of taxation offences....................................... 85

8ZB....................... Prosecution may be commenced at any time..................... 86

8ZC....................... Place where offence committed......................................... 86

8ZD....................... Conduct by employees or agents of corporations............. 87

8ZE........................ Civil penalty not payable if prosecution instituted............. 87

8ZF........................ Penalties for corporations................................................. 88

8ZG....................... Enforcement of orders for payment.................................. 88

8ZH....................... Penalties not to relieve from tax........................................ 89

Division 4—Prescribed taxation offences                                                        90

8ZJ........................ Prosecution of prescribed taxation offences...................... 90

8ZK....................... Protection of witnesses..................................................... 91

8ZL........................ Averment.......................................................................... 92

8ZM...................... Evidence of authority to institute proceedings................... 92

8ZN....................... Costs................................................................................. 93

Division 5—Service of summons for prescribed taxation offences    94

9............................ Interpretation..................................................................... 94

10.......................... Service of summons by post............................................. 94

11.......................... Notice of conviction in absentia....................................... 95

12.......................... Notice of intention to issue warrant in default of payment 95

13.......................... Limitation of action to enforce payment of fine................. 96

13A....................... Setting aside of conviction or order.................................. 96

13B........................ Proof of service of summons or notice............................. 99

13C........................ Application of other laws.................................................. 99

Division 6—Setting aside etc. of conviction or order on application of Commissioner                100

13CA..................... Setting aside etc. of conviction or order on application of Commissioner                100

Part IIIA—Co‑operation between Commonwealth and State taxation authorities          102

Division 1—Interpretation                                                                                     102

13D....................... Interpretation................................................................... 102

Division 2—Trans‑border investigations                                                       104

13E........................ State taxation officers may refer matters to Commissioner for investigation            104

13F........................ Access to documents etc................................................. 104

13G....................... Commissioner may obtain information and evidence...... 105

Division 4—Certification by State taxation officer of copies of, and extracts from, documents             107

13K........................ Certification by State taxation officer of copies of, and extracts from, documents   107

Division 5—Australian Taxation Office may perform functions under State/Territory debits tax laws                                                                                                                    109

13L........................ Australian Taxation Office may perform functions under State/Territory debits tax laws        109

Part IVA—Departure from Australia of certain tax debtors                 111

Division 1—Interpretation                                                                                     111

14Q....................... Interpretation................................................................... 111

Division 2—Prohibition and authorisation of departure of certain tax debtors               112

14R........................ Departure from Australia of certain tax debtors prohibited 112

14S........................ Departure prohibition orders........................................... 112

14T........................ Revocation and variation of departure prohibition orders 113

14U....................... Departure authorisation certificates................................. 114

Division 3—Appeals from, and review of, decisions of the Commissioner          117

14V....................... Appeals to courts against making of departure prohibition orders           117

14W....................... Jurisdiction of courts...................................................... 117

14X....................... Orders of court on appeal............................................... 117

14Y....................... Applications for review of certain decisions................... 118

Division 4—Enforcement                                                                                        119

14Z........................ Powers of authorised officers......................................... 119

14ZA..................... Certain tax debtors to produce authority to depart etc..... 120

Part IVC—Taxation objections, reviews and appeals                                 121

Division 1—Introduction                                                                                        121

14ZL...................... Part applies to taxation objections................................... 121

14ZM.................... Division 2—Interpretive................................................. 121

14ZN..................... Division 3—Taxation objections.................................... 121

14ZO..................... Division 4—Tribunal review.......................................... 121

14ZP...................... Division 5—Federal Court appeals................................. 121

Division 2—Interpretive provisions                                                                  122

14ZQ..................... General interpretation provisions.................................... 122

14ZR..................... Taxation decisions covered by single notice to be treated as single decision            123

14ZS...................... Ineligible income tax remission decisions....................... 124

Division 3—Taxation objections                                                                         125

14ZU..................... How taxation objections are to be made.......................... 125

14ZV..................... Limited objection rights in the case of certain amended taxation decisions               125

14ZVA.................. Limited objection rights because of other objections....... 125

14ZVB.................. Objections relating to excess concessional contributions 126

14ZVC.................. Objections relating to non‑concessional contributions.... 127

14ZW.................... When taxation objections are to be made........................ 128

14ZX..................... Commissioner to consider applications for extension of time  134

14ZY..................... Commissioner to decide taxation objections................... 134

14ZYA.................. Person may require Commissioner to make an objection decision           135

14ZYB.................. Requiring Commissioner to make a private ruling.......... 136

14ZZ...................... Person may seek review of, or appeal against, Commissioner’s decision                136

Division 4—AAT review of objection decisions and extension of time refusal decisions             138

14ZZA................... Modified AAT Act to apply........................................... 138

14ZZB................... Sections 27, 28, 41 and 44A of the AAT Act not to apply to certain decisions       138

14ZZC................... Modification of section 29 of the AAT Act.................... 138

14ZZD................... Modification of section 30 of the AAT Act.................... 139

14ZZE................... Hearings before Tribunal to be held in private if applicant so requests    139

14ZZF................... Modification of section 37 of the AAT Act.................... 139

14ZZG................... Modification of section 38 of the AAT Act.................... 140

14ZZJ.................... Modification of section 43 of the AAT Act.................... 141

14ZZK................... Grounds of objection and burden of proof..................... 141

14ZZL................... Implementation of Tribunal decisions............................. 142

14ZZM.................. Pending review not to affect implementation of taxation decisions          142

Division 5—Court appeals against objection decisions                          143

14ZZN................... Time limit for appeals..................................................... 143

14ZZO................... Grounds of objection and burden of proof..................... 143

14ZZP................... Order of court on objection decision............................... 143

14ZZQ................... Implementation of court order in respect of objection decision                143

14ZZR................... Pending appeal not to affect implementation of taxation decisions           144

14ZZS................... Transfer of certain proceedings to Family Court............. 144

Part IVD—Protection for whistleblowers                                                           147

14ZZT................... Disclosures qualifying for protection under this Part...... 147

14ZZU................... Eligible whistleblowers................................................... 148

14ZZV................... Eligible recipients............................................................ 149

14ZZW.................. Confidentiality of whistleblower’s identity..................... 150

14ZZX................... Disclosure that qualifies for protection not actionable etc. 151

14ZZY................... Victimisation prohibited.................................................. 152

14ZZZ................... Compensation and other remedies—circumstances in which an order may be made               153

14ZZZAA............. Detriment........................................................................ 155

14ZZZA................ Compensation and other remedies—orders that may be made 156

14ZZZB................. Identifying information not to be disclosed etc. to courts or tribunals      158

14ZZZC................. Costs only if proceedings instituted vexatiously etc........ 158

14ZZZD................ Interaction between civil proceedings and criminal offences 159

14ZZZE................. Compensation for acquisition of property....................... 159

Part V—Miscellaneous                                                                                                    160

15.......................... Appearance by Commissioner etc................................... 160

15A....................... Certification by Commissioner of copies of, and extracts from, documents             161

15B........................ Recoverable advances..................................................... 163

15C........................ Recoverable payments.................................................... 164

15D....................... Reports about recoverable advances and recoverable payments               166

16.......................... Payments out of Consolidated Revenue Fund................ 168

16A....................... Regulations may provide for methods of payment of tax liabilities etc.    169

16B........................ Certain liabilities to be reduced to nearest multiple of 5 cents.. 170

17.......................... Powers of taxation officers in relation to references to currency etc.        170

17A....................... Powers of Federal Court and Federal Circuit Court in respect of taxation matters   171

18.......................... Regulations..................................................................... 172

Schedule 1—Collection and recovery of income tax and other liabilities               173

Chapter 2—Collection, recovery and administration of income tax  173

Part 2‑1—Introduction to the Pay as you go (PAYG) system            173

Division 6—Guide to Parts 2‑5 and 2‑10                                                          173

6‑1......................... What Parts 2‑5 and 2‑10 are about.................................. 173

6‑5......................... The Pay as you go (PAYG) system............................... 173

6‑10....................... How the amounts collected are dealt with....................... 174

Part 2‑5—Pay as you go (PAYG) withholding                                           175

Division 10—Guide to Part 2‑5                                                                           175

10‑1....................... What this Part is about.................................................... 175

10‑5....................... Summary of withholding payments................................ 175

Division 11—Preliminary matters                                                                    178

11‑1....................... Object of this Part........................................................... 178

11‑5....................... Constructive payment..................................................... 178

Division 12—Payments from which amounts must be withheld                 180

Subdivision 12‑A—General rules                                                                       180

12‑1....................... General exceptions.......................................................... 180

12‑5....................... What to do if more than one provision requires a withholding 182

12‑7....................... Division does not apply to alienated personal services payments             183

12‑10..................... Division does not apply to non‑cash benefits................. 184

12‑20..................... Application of Division and regulations to non‑share dividends              184

Subdivision 12‑B—Payments for work and services                                    184

12‑35..................... Payment to employee...................................................... 185

12‑40..................... Payment to company director.......................................... 185

12‑45..................... Payment to office holder................................................. 185

12‑47..................... Payment to religious practitioners................................... 186

12‑50..................... Return to work payment................................................. 186

12‑55..................... Voluntary agreement to withhold.................................... 186

12‑60..................... Payment under labour hire arrangement, or specified by regulations       187

Subdivision 12‑C—Payments for retirement or because of termination of employment            188

12‑80..................... Superannuation income streams and annuities................ 188

12‑85..................... Superannuation lump sums and payments for termination of employment              188

12‑90..................... Unused leave payments.................................................. 189

Subdivision 12‑D—Benefit and compensation payments                             189

12‑110................... Social Security or other benefit payment......................... 189

12‑115................... Commonwealth education or training payment............... 190

12‑120................... Compensation, sickness or accident payment................. 190

Subdivision 12‑E—Payments where TFN or ABN not quoted                    190

Payment in respect of investment                                                                       191

12‑140................... Recipient does not quote tax file number........................ 191

12‑145................... Investor becoming presently entitled to income of a unit trust  192

12‑150................... Limited application of section 12‑140 to payment under financial arrangement       193

12‑152................... Limited application of section 12‑140 to payment covered by section 12A‑205      194

12‑155................... When investor may quote ABN as alternative................ 194

12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying                195

12‑165................... Exception for fully franked dividend.............................. 195

12‑170................... Exception for payments below thresholds set by regulations 195

Payment of income of closely held trust where TFN not quoted                196

12‑175................... Trustee distributes income of closely held trust.............. 196

12‑180................... Beneficiary becomes presently entitled to income of closely held trust    198

12‑185................... Exception for payments below thresholds set by regulations 199

Payment for a supply                                                                                            199

12‑190................... Recipient does not quote ABN....................................... 199

Subdivision 12‑F—Dividend, interest and royalty payments                      202

Dividends                                                                                                                  203

12‑210................... Dividend payment to overseas person............................ 203

12‑215................... Dividend payment received for foreign resident............. 204

12‑220................... Application to part of a dividend..................................... 204

12‑225................... Application to distribution by a liquidator or other person 204

Interest                                                                                                                      205

12‑245................... Interest payment to overseas person............................... 205

12‑250................... Interest payment received for foreign resident................ 205

12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 206

12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment        206

Royalties                                                                                                                   207

12‑280................... Royalty payment to overseas person............................... 207

12‑285................... Royalty payment received for foreign resident................ 207

General                                                                                                                     208

12‑300................... Limits on amount withheld under this Subdivision......... 208

Subdivision 12‑FA—Departing Australia superannuation payments       208

12‑305................... Departing Australia superannuation payment................. 209

12‑310................... Limits on amount withheld under this Subdivision......... 209

Subdivision 12‑FAA—Excess untaxed roll‑over amount                             209

12‑312................... Untaxed roll‑over superannuation benefits..................... 209

12‑313................... Limits on amount withheld under this Subdivision......... 209

Subdivision 12‑FB—Payments to foreign residents etc.                               210

12‑315................... Payment to foreign resident etc....................................... 210

12‑317................... Payment received for foreign resident etc....................... 211

12‑319................... Exemptions from withholding obligations under this Subdivision           213

Subdivision 12‑FC—Seasonal Labour Mobility Program                          214

12‑319A................ Payment to employee...................................................... 214

Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources                214

Mining on Aboriginal land                                                                                  215

12‑320................... Mining payment.............................................................. 215

Natural resources                                                                                                   215

12‑325................... Natural resource payment............................................... 215

12‑330................... Payer must ask Commissioner how much to withhold... 216

12‑335................... Commissioner may exempt from section 12‑330, subject to conditions   216

Subdivision 12‑H—Distributions of withholding MIT income                   217

Guide to Subdivision 12‑H                                                                                   217

12‑375................... What this Subdivision is about....................................... 217

Operative provisions                                                                                             219

12‑383................... Meaning of withholding MIT.......................................... 219

12‑385................... Withholding by withholding MITs................................. 220

12‑390................... Withholding by custodians and other entities.................. 221

12‑395................... Requirement to give notice or make information available 224

12‑405................... Meaning of fund payment—general case........................ 227

12‑410................... Entity to whom payment is made.................................... 230

12‑415................... Failure to give notice or make information available: administrative penalty            230

12‑420................... Agency rules................................................................... 231

12‑425................... Meaning of clean building managed investment trust.... 231

12‑430................... Meaning of clean building.............................................. 232

12‑435................... Meaning of non‑concessional MIT income.................... 233

12‑436................... Meaning of asset entity, operating entity, cross staple arrangement and stapled entity           233

12‑437................... Meaning of MIT cross staple arrangement income....... 235

12‑438................... MIT cross staple arrangement income—de minimis exception                237

12‑439................... MIT cross staple arrangement income—approved economic infrastructure facility exception 238

12‑440................... Transitional—MIT cross staple arrangement income...... 240

12‑441................... Integrity rule—concessional cross staple rent cap........... 243

12‑442................... Meaning of excepted MIT CSA income........................... 244

12‑443................... Concessional cross staple rent cap—existing lease with specified rent or rent method            244

12‑444................... Concessional cross staple rent cap—general................... 245

12‑445................... Asset entity to allocate deductions first against rental income that is not MIT cross staple arrangement income........................................................................................ 246

12‑446................... Meaning of MIT trading trust income............................ 247

12‑447................... Transitional—MIT trading trust income......................... 248

12‑448................... Meaning of MIT agricultural income, Australian agricultural land for rent and Division 6C land        249

12‑449................... Transitional—MIT agricultural income........................... 250

12‑450................... Meaning of MIT residential housing income.................. 252

12‑451................... Transitional—MIT residential housing income............... 253

12‑452................... Meaning of residential dwelling asset............................ 254

12‑453................... MIT agricultural income and MIT residential housing income—capital gains in relation to membership interests........................................................................... 255

Subdivision 12‑J—FHSS released amounts                                                     257

12‑460................... FHSS released amounts.................................................. 257

Division 12A—Distributions by AMITs (including deemed payments)    258

Guide to Division 12A                                                                                           258

12A‑1.................... What this Division is about............................................. 258

Subdivision 12A‑A—Distributions by AMITs relating to dividend, interest and royalties          259

Guide to Subdivision 12A‑A                                                                                 259

12A‑5.................... What this Subdivision is about....................................... 259

Operative provisions                                                                                             259

12A‑10.................. Deemed payments—no obligation to withhold under Subdivision 12‑F (dividend, interest and royalty payments)....................................................................... 259

12A‑15.................. Dividend, interest or royalty payments relating to AMIT—requirement to give notice or make information available.......................................................................... 260

12A‑20.................. Failure to give notice or make information available under section 12A‑15: administrative penalty         263

12A‑25.................. Meaning of AMIT DIR payment..................................... 263

12A‑30.................. Meaning of AMIT dividend payment.............................. 264

12A‑35.................. Meaning of AMIT interest payment................................ 265

12A‑40.................. Meaning of AMIT royalty payment................................. 266

Subdivision 12A‑B—Distributions by AMITs relating to Subdivision 12‑H fund payments       267

Guide to Subdivision 12A‑B                                                                                 267

12A‑100................ What this Subdivision is about....................................... 267

Operative provisions                                                                                             267

12A‑105................ Deemed payments—no obligation to withhold under Subdivision 12‑H 267

12A‑110................ Meaning of fund payment—AMITs............................... 268

Subdivision 12A‑C—Deemed payments by AMITs etc.                                272

Guide to Subdivision 12A‑C                                                                                 272

12A‑200................ What this Subdivision is about....................................... 272

Operative provisions                                                                                             273

12A‑205................ Issue of AMMA statement etc. deemed to be payment... 273

12A‑210................ Post‑AMMA actual payment and pre‑AMMA actual payment in respect of deemed payment  275

12A‑215................ AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc. 276

12A‑220................ Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc.           277

Division 13—Alienated personal services payments                                     280

13‑1....................... Object of this Division.................................................... 280

13‑5....................... Payment to the Commissioner in respect of alienated personal services payments   280

13‑10..................... Alienated personal services payments............................. 283

13‑15..................... Personal services payment remitters............................... 284

13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01    285

Division 14—Benefits, gains and taxable supplies for which amounts must be paid to the Commissioner             286

Subdivision 14‑A—Non‑cash benefits                                                               286

14‑1....................... Object of this Subdivision.............................................. 286

14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding..................................................................... 286

14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit              287

14‑15..................... Payer can recover amount paid to the Commissioner...... 288

Subdivision 14‑B—Accruing gains                                                                    288

14‑50..................... Object of this Subdivision.............................................. 288

14‑55..................... Liability for TFN withholding tax................................... 289

14‑60..................... Investment body may recover TFN withholding tax from investor          290

14‑65..................... Application of rules in Division 18................................. 290

14‑75..................... Overpayment of TFN withholding tax............................ 291

14‑85..................... Other laws do not exempt from TFN withholding tax.... 291

Subdivision 14‑C—Shares and rights under employee share schemes     292

14‑155................... Liability for TFN withholding tax (ESS)........................ 292

14‑160................... Employer may give individual tax file numbers to provider 293

14‑165................... Provider may recover TFN withholding tax (ESS) from individual         293

14‑170................... Application of rules in Division 18................................. 294

14‑175................... Overpayment of TFN withholding tax (ESS)................. 294

14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997  294

Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property        295

14‑200................... Certain acquisitions of taxable Australian property from foreign residents              295

14‑205................... Effect of look‑through earnout rights.............................. 296

14‑210................... Whether an entity is a relevant foreign resident............... 297

14‑215................... Excluded transactions..................................................... 299

14‑220................... Commissioner clearance certificates................................ 301

14‑225................... Entity declarations........................................................... 301

14‑230................... Administrative penalties for false or misleading declarations 302

14‑235................... Varying amounts to be paid to the Commissioner.......... 303

Subdivision 14‑E—GST payable on taxable supplies of certain real property              304

14‑250................... Recipients of certain taxable supplies of real property must pay amounts to Commissioner    305

14‑255................... Notification by suppliers of residential premises etc....... 307

Division 15—Working out the amount to withhold                                       310

Guide to Division 15                                                                                              310

15‑1....................... What this Division is about............................................. 310

Subdivision 15‑A—Working out how much to withhold                              310

15‑10..................... How much to withhold................................................... 311

15‑15..................... Variation of amounts required to be withheld................. 311

Subdivision 15‑B—Withholding schedules and regulations                        312

15‑25..................... Commissioner’s power to make withholding schedules. 312

15‑30..................... Matters to be considered when making withholding schedules                313

15‑35..................... Regulations about withholding....................................... 315

Subdivision 15‑C—Declarations                                                                        315

15‑50..................... Declarations.................................................................... 315

Division 16—Payer’s obligations and rights                                                   318

Guide to Division 16                                                                                              318

16‑1....................... What this Division is about............................................. 318

Subdivision 16‑A—To withhold                                                                          318

When to withhold                                                                                                    319

16‑5....................... When to withhold an amount.......................................... 319

16‑7....................... Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12     319

16‑20..................... Payer discharged from liability to recipient for amount withheld             320

Penalties for not withholding                                                                              320

16‑25..................... Failure to withhold: offence............................................ 320

16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 321

16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty............................ 322

16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment.............................................. 323

16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.......................................................... 323

Subdivision 16‑B—To pay withheld amounts to the Commissioner         324

When and how to pay amounts to the Commissioner                                    324

16‑70..................... Entity to pay amounts to Commissioner......................... 324

16‑75..................... When amounts must be paid to Commissioner............... 325

16‑80..................... Penalty for failure to pay within time.............................. 327

16‑85..................... How amounts are to be paid........................................... 327

Who is a large, medium or small withholder                                                  328

16‑95..................... Meaning of large withholder.......................................... 328

16‑100................... Meaning of medium withholder...................................... 329

16‑105................... Meaning of small withholder.......................................... 329

16‑110................... Commissioner may vary withholder’s status downwards 329

16‑115................... Commissioner may vary withholder’s status upwards... 330

Subdivision 16‑BA—To be registered                                                               331

Registration of withholders                                                                                 332

16‑140................... Withholders must be registered....................................... 332

16‑141................... Registration and cancellation........................................... 333

Branch registration                                                                                               333

16‑142................... Branches may be registered............................................ 333

16‑143................... Separate amounts for entities and branches..................... 334

16‑144................... Cancellation of branch registration.................................. 334

16‑145................... Effect on branches of cancelling the entity’s registration 334

Registration of employers of working holiday makers                                335

16‑146................... Employers of working holiday makers must be registered 335

16‑147................... Registering employers of working holiday makers......... 335

16‑148................... Cancelling the registration of employers of working holiday makers       337

Subdivision 16‑C—To provide information                                                   339

To the Commissioner                                                                                            339

16‑150................... Commissioner must be notified of amounts.................... 339

16‑152................... Annual reports—Withholding payments covered by section 12‑175       340

16‑153................... Annual reports—other payments.................................... 341

To recipients of withholding payments                                                             344

16‑155................... Annual payment summary.............................................. 344

16‑156................... Annual payment summary for sections 12‑175 and 12‑180 346

16‑157................... Payment summary for Subdivision 12‑H....................... 346

16‑160................... Part‑year payment summary........................................... 347

16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment         348

16‑166................... Payment summary for a departing Australia superannuation payment     349

16‑167................... Payment summary for payment to recipient who does not quote ABN    349

16‑170................... Form and content of payment summary.......................... 350

16‑175................... Penalty for not providing payment summary.................. 351

16‑180................... Commissioner may exempt entity from giving payment summary           352

16‑182................... Definition of reportable employer superannuation contribution             352

Subdivision 16‑D—Additional rights and obligations of entity that makes a payment                353

16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes    353

Division 18—Recipient’s entitlements and obligations                                 355

Subdivision 18‑A—Crediting withheld amounts                                            355

Guide to Subdivision 18‑A                                                                                    355

18‑1....................... What this Subdivision is about....................................... 355

General exception                                                                                                  357

18‑5....................... No credit for refunded amount........................................ 357

Entitlement to credits: income tax liability                                                     357

18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 357

18‑15..................... Tax credit for recipient of withholding payments............ 358

18‑20..................... Tax credit where recipient is a partnership...................... 358

18‑25..................... Tax credit where recipient is a trust................................. 359

18‑27..................... Tax credit for alienated personal services payments........ 361

Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program                                                                    361

18‑30..................... Credit: dividend, interest or royalty................................. 361

18‑32..................... Credit: amount attributable to fund payment................... 362

18‑33..................... Credit: Seasonal Labour Mobility Program.................... 363

18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge               363

18‑40..................... Credit: liability under Part 4‑25....................................... 365

Entitlement to credit: departing Australia superannuation payment       367

18‑42..................... Credit—departing Australia superannuation payment..... 367

Entitlement to credit: mining payment                                                             368

18‑45..................... Credit—mining payment................................................. 368

Entitlement to credit: Petroleum resource rent tax                                       369

18‑55..................... Credit—Natural resource payments................................ 369

Entitlement to credit: taxable supply of real property                                 369

18‑60..................... Credit—payment relating to taxable supply of real property 369

Subdivision 18‑B—Refund of certain withheld amounts                             370

18‑65..................... Refund of withheld amounts by the payer to the recipient 370

18‑70..................... Refund of withheld amounts by the Commissioner to the recipient         373

18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment           375

18‑85..................... Refund by Commissioner of amount withheld from payment in respect of supply of real property        376

Subdivision 18‑C—Recipient’s obligations                                                      376

18‑100................... Obligation to keep payment summary............................. 376

Subdivision 18‑D—Directors etc. of non‑complying companies                377

Object of Subdivision                                                                                            378

18‑120................... Object of Subdivision..................................................... 378

PAYG withholding non‑compliance tax                                                           378

18‑125................... Directors of non‑complying companies.......................... 378

18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances       380

18‑135................... Associates of directors of non‑complying companies..... 381

18‑140................... Notices............................................................................ 385

18‑145................... When PAYG withholding non‑compliance tax must be paid.. 386

18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax               387

18‑155................... Validity of decisions and evidence.................................. 387

18‑160................... Rights of indemnity and contribution.............................. 388

Credits for later compliance                                                                               389

18‑165................... Credits for later compliance—scope............................... 389

18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances          389

18‑175................... Credits for later compliance—Commissioner may give notice 391

18‑180................... Effect of earlier credits.................................................... 392

Other provisions                                                                                                     393

18‑185................... When Commissioner may give notice............................. 393

18‑190................... Review of decisions........................................................ 394

Division 20—Other matters                                                                                 395

Subdivision 20‑B—Offences                                                                                395

20‑35..................... Offences......................................................................... 395

20‑40..................... Joining of charges........................................................... 396

20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company    397

Subdivision 20‑D—Review of decisions                                                            398

20‑80..................... Reviewable decisions...................................................... 398

Division 21—Entitlements relating to insolvent ADIs and general insurers 400

Guide to Division 21                                                                                              400

21‑1....................... What this Division is about............................................. 400

Subdivision 21‑A—Treatment of some payments by APRA                       400

21‑5....................... APRA treated like ADI or general insurance company.. 400

Part 2‑10—Pay as you go (PAYG) instalments                                          402

Division 45—Instalment payments                                                                    402

Guide to Division 45                                                                                              403

45‑1....................... What this Division is about............................................. 403

Subdivision 45‑A—Basic rules                                                                            404

45‑5....................... Object of this Part........................................................... 404

45‑10..................... Application of Part.......................................................... 406

45‑15..................... Liability for instalments.................................................. 406

45‑20..................... Information to be given to the Commissioner by certain payers               407

45‑25..................... Penalty for failure to notify Commissioner..................... 408

45‑30..................... Credit for instalments payable......................................... 408

Subdivision 45‑B—When instalments are due                                                409

45‑50..................... Liability to pay instalments............................................. 409

45‑60..................... Meaning of instalment quarter....................................... 410

45‑61..................... When quarterly instalments are due—payers of quarterly instalments     411

45‑65..................... Meaning of instalment month......................................... 412

45‑67..................... When monthly instalments are due—payers of monthly instalments       412

45‑70..................... When annual instalments are due.................................... 413

45‑72..................... Means of payment of instalment..................................... 413

45‑75..................... Instalments recoverable in same way as income tax........ 413

45‑80..................... General interest charge on late payment.......................... 413

45‑90..................... Commissioner may withdraw instalment rate................. 413

Subdivision 45‑C—Working out instalment amounts                                   414

45‑110................... How to work out amount of quarterly instalment on instalment income basis         414

45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax   415

45‑114................... How to work out amount of monthly instalment............ 416

45‑115................... How to work out amount of annual instalment............... 417

45‑120................... Meaning of instalment income........................................ 418

Subdivision 45‑D—Quarterly payers                                                                422

45‑125................... Quarterly payer who pays instalments on the basis of instalment income                422

45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax     424

45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 426

45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 427

Subdivision 45‑DA—Monthly payers                                                                429

45‑136................... Monthly payer................................................................ 429

45‑138................... Monthly payer requirement............................................. 430

Subdivision 45‑E—Annual payers                                                                     431

When you start and stop being an annual payer                                            432

45‑140................... Choosing to pay annual instalments................................ 432

45‑145................... Meaning of instalment group......................................... 433

45‑150................... Entity stops being annual payer if involved with GST registration or instalment group           434

45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly      435

45‑160................... Head company of a consolidated group stops being annual payer           436

Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income                                                                                         436

45‑200................... Application..................................................................... 437

45‑205................... Choosing a varied instalment rate................................... 437

45‑210................... Notifying Commissioner of varied instalment rate.......... 438

45‑215................... Credit on using varied rate in certain cases..................... 438

Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low              439

45‑225................... Effect of Subdivision in relation to monthly payers........ 439

45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate     440

45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax........................................................................................ 441

45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment      450

45‑235................... Liability to GIC on shortfall in annual instalment........... 451

45‑240................... Commissioner may remit general interest charge............ 453

Subdivision 45‑H—Partnership income                                                           453

45‑260................... Instalment income for a period in which you are in a partnership            453

Subdivision 45‑I—Trust income included in instalment income of beneficiary            454

45‑280................... Instalment income for a period in which you are a beneficiary of a trust  455

45‑285................... Instalment income includes distributions by certain resident unit trusts   457

45‑286................... Instalment income includes distributions by certain managed investment trusts       459

45‑287................... When trusts are disqualified due to concentrated ownership 459

45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled  461

45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income                462

Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax          462

45‑320................... Working out instalment rate............................................ 462

45‑325................... Working out your notional tax........................................ 463

45‑330................... Working out your adjusted taxable income.................... 465

45‑335................... Working out your adjusted withholding income............. 467

45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income           467

Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax             470

45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax      470

45‑360................... How Commissioner works out benchmark instalment rate 471

45‑365................... Working out your benchmark tax................................... 471

45‑370................... Working out your adjusted assessed taxable income for the variation year             472

45‑375................... Adjusted assessed tax on adjusted assessed taxable income 473

Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax                                                                                                 476

45‑400................... Working out amount of instalment—payers of 4 quarterly instalments    476

45‑402................... Working out amount of instalment—payers of 2 quarterly instalments    478

45‑405................... Working out your GDP‑adjusted notional tax................ 480

Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax                                                                                                 481

45‑410................... Working out amount of instalment—payers of 4 quarterly instalments    482

45‑412................... Working out amount of instalment—payers of 2 quarterly instalments    483

45‑415................... Estimating your benchmark tax....................................... 485

45‑420................... Credit in certain cases where amount of instalment is nil 486

Subdivision 45‑N—How this Part applies to the trustee of a trust             487

Trustees to whom this Part applies                                                                    487

45‑450................... Trustees to whom a single instalment rate is given......... 487

45‑455................... Trustees to whom several instalment rates are given....... 488

45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 489

45‑465................... Meaning of instalment income........................................ 489

45‑468................... Multi‑rate trustee may pay quarterly instalments............. 490

How Commissioner works out instalment rate and notional tax for a multi‑rate trustee            490

45‑470................... Working out instalment rate............................................ 490

45‑473................... Commissioner must notify you of notional tax............... 491

45‑475................... Working out your notional tax........................................ 491

45‑480................... Working out your adjusted taxable income.................... 492

45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share         492

45‑485................... Working out your adjusted withholding income............. 493

How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee                494

45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax      494

45‑530................... How Commissioner works out benchmark instalment rate 494

45‑535................... Working out your benchmark tax................................... 495

Subdivision 45‑P—Anti‑avoidance rules                                                          495

45‑595................... Object of this Subdivision.............................................. 496

45‑597................... Effect of Subdivision in relation to instalment months.... 496

45‑600................... General interest charge on tax benefit relating to instalments 496

45‑605................... When do you get a tax benefit from a scheme?............... 498

45‑610................... What is your tax position for an income year?................ 499

45‑615................... What is your hypothetical tax position for an income year? 501

45‑620................... Amount on which GIC is payable, and period for which it is payable     501

45‑625................... Credit if you also got a tax detriment from the scheme... 502

45‑630................... When do you get a tax detriment from a scheme?........... 503

45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides                504

45‑640................... Commissioner may remit general interest charge in special cases            506

Subdivision 45‑Q—General rules for consolidated groups                         506

Guide to Subdivision 45‑Q                                                                                   506

45‑700................... What this Subdivision is about....................................... 506

Application of Subdivision                                                                                   507

45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers       507

45‑705................... Application of Subdivision to head company................. 508

Usual operation of this Part for consolidated group members                  512

45‑710................... Single entity rule............................................................. 512

45‑715................... When instalments are due—modification of section 45‑61 513

45‑720................... Head company cannot be an annual payer—modification of section 45‑140           513

Membership changes                                                                                             513

45‑740................... Change of head company................................................ 513

45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group)              516

45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group)           517

45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax   519

Subdivision 45‑R—Special rules for consolidated groups                           521

Guide to Subdivision 45‑R                                                                                    521

45‑850................... What this Subdivision is about....................................... 521

Operative provisions                                                                                             522

45‑855................... Section 701‑1 disregarded for certain purposes.............. 522

45‑860................... Member having a different instalment period.................. 522

45‑865................... Credit rule....................................................................... 523

45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment       525

45‑875................... Other rules about the general interest charge................... 528

45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group          529

45‑885................... Early application of Subdivision 45‑Q to the head company of a new group           531

Subdivision 45‑S—MEC groups                                                                         532

Guide to Subdivision 45‑S                                                                                    532

45‑900................... What this Subdivision is about....................................... 532

Preliminary                                                                                                             533

45‑905................... Objects of Subdivision................................................... 533

General modification rules                                                                                  534

45‑910................... Extended operation of Part to cover MEC groups.......... 534

Extended operation of Subdivision 45‑Q                                                         535

45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups  535

45‑915................... Application of Subdivision 45‑Q to provisional head company               535

45‑917................... Assumption for applying section 45‑710 (single entity rule) 539

45‑920................... Change of provisional head company............................. 539

45‑922................... Life insurance company.................................................. 542

Extended operation of Subdivision 45‑R                                                          543

45‑925................... Additional modifications of sections 45‑855 and 45‑860 543

45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision     543

45‑935................... Additional modifications of section 45‑885.................... 544

Part 2‑15—Returns and assessments                                                               545

Division 70—Tax receipts                                                                                    545

Guide to Division 70                                                                                              545

70‑1....................... What this Division is about............................................. 545

Subdivision 70‑A—Tax receipts                                                                         545

70‑5....................... Tax receipt to be provided to certain individual taxpayers 546

Part 2‑30—Collecting Medicare levy with income tax                           548

Division 90—Medicare levy and Medicare levy surcharge                        548

Subdivision 90‑A—Treatment like income tax                                               548

90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 548

Part 2‑35—Excess superannuation contributions                                     549

Division 95—Excess concessional contributions charge                              549

Guide to Division 95                                                                                              549

95‑1....................... What this Division is about............................................. 549

Subdivision 95‑A—Object of Division                                                              549

95‑5....................... Object of Division.......................................................... 549

Subdivision 95‑B—Excess concessional contributions charge                   550

95‑10..................... Liability to excess concessional contributions charge..... 550

95‑15..................... Amount of excess concessional contributions charge..... 551

95‑20..................... When excess concessional contributions charge is due and payable        551

95‑25..................... General interest charge.................................................... 552

Division 97—Excess contributions determinations                                       553

Subdivision 97‑A—Excess concessional contributions determinations    553

Guide to Subdivision 97‑A                                                                                    553

97‑1....................... What this Subdivision is about....................................... 553

Operative provisions                                                                                             553

97‑5....................... Determination of excess concessional contributions and charge              553

97‑10..................... Review............................................................................ 554

Subdivision 97‑B—Excess non‑concessional contributions determinations 554

Guide to Subdivision 97‑B                                                                                    554

97‑20..................... What this Subdivision is about....................................... 554

Operative provisions                                                                                             555

97‑25..................... Excess non‑concessional contributions determinations... 555

97‑30..................... Associated earnings........................................................ 555

97‑35..................... Review............................................................................ 556

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

Part I—Preliminary

  

1  Short title

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

2  Interpretation

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

approved form has the meaning given by Schedule 1.

ASIO means the Australian Security Intelligence Organisation.

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

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

Commissioner means the Commissioner of Taxation.

Deputy Commissioner means any Deputy Commissioner of Taxation.

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

eligible recipient has the meaning given by section 14ZZV.

eligible whistleblower has the meaning given by section 14ZZU.

engage in conduct means:

                     (a)  do an act; or

                     (b)  omit to perform an act.

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

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

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

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

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

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

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

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

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

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

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

migration officer means:

                     (a)  the Immigration Secretary; or

                     (b)  an employee of the Immigration Department.

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

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

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

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

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

Second Commissioner means a Second Commissioner of Taxation.

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

Note:          See also subsection (2).

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

Tribunal means the Administrative Appeals Tribunal.

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

2A  Application of the Criminal Code

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

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

2B  Act binds the Crown

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

3  Application

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

3AA  Schedule 1

             (1)  Schedule 1 has effect.

Definitions in Schedule 1 do not apply to rest of Act

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

Application of interpretation provisions of Income Tax Assessment Act 1997

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

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

Part IA—Administration

  

3A  General administration of Act

                   The Commissioner has the general administration of this Act.

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

3B  Annual report

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

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

                     (b)  set out:

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

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

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

                     (c)  set out:

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

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

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

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

                     (d)  set out the number (if any) of taxation officers (within the meaning of the Income Tax Assessment Act 1997) found guilty of the offence in section 355‑25 in Schedule 1 (about disclosure of protected information); and

                     (e)  set out information on the exercise during the year of the Commissioner’s powers under Subdivision 370‑A in Schedule 1 (Commissioner’s remedial power).

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

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

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

             (4)  In this section:

this Act does not include Part IVC.

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

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

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

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

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

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

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

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

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

             (3)  The information is as follows:

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

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

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

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

             (4)  Subsection (5) applies if:

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

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

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

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

3CA  Reporting of information by significant global entities

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

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

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

                              (i)  an Australian resident; or

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

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

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

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

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

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

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

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