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.
(4) The giving of the copy to the Australian Securities and Investments Commission under subsection (3) is taken, for the purposes of the Corporations Act 2001, to be lodgement of the document with the Australian Securities and Investments Commission.
Note: Under section 1274 of the Corporations Act 2001, a person may inspect, and require to be given a copy or extract of, any document lodged with the Australian Securities and Investments Commission.
(5) For the purposes of this section, a general purpose financial statement in relation to an entity:
(a) must be prepared in accordance with:
(i) the accounting principles; or
(ii) if accounting principles do not apply in relation to the entity—commercially accepted principles relating to accounting; and
(b) if the entity is a member of a group of entities that are consolidated for accounting purposes as a single group—must relate to:
(i) the entity; or
(ii) the entity and some or all of the other members of the group.
(6) An expression used in this section that is also used in the Income Tax Assessment Act 1997 has the same meaning as in that Act.
3E Reporting of information about entity with PRRT payable
(1) This section applies to an entity if the entity has an amount of PRRT payable for a year of tax, according to information reported to the Commissioner in the entity’s PRRT return for the year of tax.
(2) The Commissioner must, as soon as practicable after the end of the year of tax, make publicly available the information mentioned in subsection (3).
(3) The information is as follows:
(a) the entity’s ABN (within the meaning of the Income Tax Assessment Act 1997) and name;
(b) the PRRT payable by the entity in respect of the year of tax, according to information reported to the Commissioner in the entity’s PRRT return for the year of tax.
(4) Subsection (5) applies if:
(a) the entity gives the Commissioner a notice in writing that the return mentioned in paragraph (3)(b) contains an error; and
(b) the notice contains information that corrects the error.
(5) The Commissioner may at any time make the information mentioned in paragraph (4)(b) publicly available, in accordance with subsection (2), in order to correct the error.
(6) To avoid doubt, if the Commissioner considers that information made publicly available under subsection (2) fails to reflect all of the information required to be made publicly available under that subsection, the Commissioner may at any time make publicly available other information in order to remedy the failure.
(7) In this section:
PRRT return means a return under section 59 or 60 of the Petroleum Resource Rent Tax Assessment Act 1987.
year of tax has the meaning given by the Petroleum Resource Rent Tax Assessment Act 1987.
3F Reporting of information about junior minerals exploration incentive offset
(1) This section applies if the Commissioner makes a determination under section 418‑101 of the Income Tax Assessment Act 1997 allocating exploration credits to an entity for an income year.
(2) The Commissioner must, as soon as practicable after making the determination, make publicly available:
(a) the ABN and name of the entity; and
(b) the amount of the entity’s exploration credits allocation for the income year.
(3) An expression used in this section that is also used in the Income Tax Assessment Act 1997 has the same meaning as in that Act.
3G Electronic invoicing
(1) The Commissioner’s functions include the function of developing and/or administering a framework or system for electronic invoicing.
(2) Without limiting subsection (1), the Commissioner may develop the framework or system by adopting (with appropriate modifications) a framework or system for electronic invoicing operating outside Australia.
(3) The Commissioner has power to do all things that are necessary or convenient to be done for or in connection with the performance of the Commissioner’s functions under this section.
(4) Without limiting subsection (3), the Commissioner’s powers under that subsection include:
(a) entering into agreements for integrating the framework or system for electronic invoicing mentioned in subsection (1) with frameworks or systems for electronic invoicing that operate outside Australia; and
(b) entering into agreements for accessing the framework or system for electronic invoicing mentioned in subsection (1); and
(c) liaising with:
(i) foreign countries; and
(ii) agencies, and other entities, of foreign countries;
to develop common approaches to electronic invoices between countries.
(5) This section does not limit any functions or powers the Commissioner has apart from this section.
Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation
4 Commissioner and Second Commissioners of Taxation
There shall be a Commissioner of Taxation and 3 Second Commissioners of Taxation, who shall be appointed by the Governor‑General.
4A Statutory Agency etc. for purposes of Public Service Act
(1) The staff necessary to assist the Commissioner are to be persons engaged under the Public Service Act 1999.
(2) For the purposes of the Public Service Act 1999:
(a) the Commissioner and the APS employees assisting the Commissioner together constitute a Statutory Agency; and
(b) the Commissioner is the Head of that Statutory Agency.
5 Tenure of Commissioner and Second Commissioners
(1) The Commissioner of Taxation and each Second Commissioner of Taxation shall be appointed for terms of 7 years respectively and shall be eligible for re‑appointment.
(3) The Commissioner of Taxation and the Second Commissioners of Taxation are not subject to the Public Service Act 1999.
5A Remuneration and allowances of Commissioner and Second Commissioners
(1) The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such remuneration as is determined by the Remuneration Tribunal but, if no determination of that remuneration by the Tribunal is in operation, they shall be paid remuneration at the respective rates that were applicable immediately before the commencement of this section.
(2) The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such allowances as are prescribed.
(3) This section has effect subject to the Remuneration Tribunal Act 1973.
6 Leave of absence
(1) The Commissioner and a Second Commissioner have such recreation leave entitlements as are determined by the Remuneration Tribunal.
(2) The Minister may grant the Commissioner and a Second Commissioner leave of absence, other than recreation leave, on such terms and conditions as to remuneration or otherwise as the Minister determines.
6A Resignation
The Commissioner or a Second Commissioner may resign his or her office by writing signed by the Commissioner or Second Commissioner, as the case may be, and delivered to the Governor‑General.
6B Acting appointments
(1) The Minister may appoint a person to act in the office of Commissioner of Taxation:
(a) during a vacancy in that office; or
(b) during any period, or during all periods, when the person holding that office is absent from duty or from Australia or is, for any other reason, unable to perform the functions of that office.
Note: For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901.
(2) The Minister may appoint a person to act in an office of Second Commissioner of Taxation:
(a) during a vacancy in that office; or
(b) during any period, or during all periods, when the person holding the office of Second Commissioner of Taxation is absent from duty or from Australia, is acting in the office of Commissioner of Taxation or is, for any other reason, unable to perform the functions of the office of Second Commissioner of Taxation.
Note: For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901.
(6) While a person is acting in the office of Commissioner of Taxation, the person has and may exercise all the powers, and shall perform all the functions, of the Commissioner under this Act or any other law.
(6A) For the purposes of subsection (6), the Commissioner’s powers and functions include powers and functions given to the Commissioner in his or her capacity as Registrar of the Australian Business Register.
(7) While a person is acting in an office of Second Commissioner of Taxation, the person has and may exercise all the powers, and shall perform all the functions, of the Second Commissioner under this Act or any other law.
6C Suspension and removal from office of Commissioner or Second Commissioner