Taxation Administration Act 1953

No. 1, 1953

Compilation No. 174

Compilation date:                              15 October 2020

Includes amendments up to:            Act No. 92, 2020

Registered:                                         30 October 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 15/10/2020 (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If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.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 corporate country by country reporting entities           8

3E.......................... Reporting of information about entity with PRRT payable 10

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          30

Division 1—Preliminary                                                                                            30

8AAZA................. Definitions........................................................................ 30

8AAZAA.............. Amounts relating to Coronavirus economic response payments              33

8AAZB................. Trustee to be treated as separate entity for each capacity... 33

Division 2—Running Balance Accounts (or RBAs)                                    34

8AAZC................. Establishment of RBAs.................................................... 34

8AAZD................. Allocation of tax debts to RBAs....................................... 34

8AAZF.................. General interest charge on RBA deficit debt..................... 35

8AAZG................. RBA statements................................................................ 35

8AAZH................. Liability for RBA deficit debt........................................... 35

8AAZI................... RBA statement to be evidence.......................................... 36

8AAZJ.................. Evidentiary certificate about RBA transactions etc............ 36

Division 3—Treatment of payments, credits and RBA surpluses       38

8AAZL.................. Amounts covered by this Division................................... 38

8AAZLA............... Method 1—allocating the amount first to an RBA............ 39

8AAZLB............... Method 2—applying the amount first against a non‑RBA tax debt          39

8AAZLC............... RBA surplus and related credits must remain equivalent if one or the other is applied            40

8AAZLD............... Special priority credits...................................................... 40

8AAZLE............... Instructions to Commissioner not binding........................ 41

Division 3A—Refunds of RBA surpluses and credits                                42

8AAZLF............... Commissioner must refund RBA surpluses and credits... 42

8AAZLG............... Retaining refunds until information or notification given.. 43

8AAZLGA............ Retaining refunds while Commissioner verifies information 43

8AAZLGB............ Retaining refunds until notification under Division 389 or ascertainment of liability               46

8AAZLH............... How refunds are made...................................................... 48

Division 4—Miscellaneous provisions about tax debts                             49

8AAZM................ When payments are treated as received............................. 49

8AAZMA............. Electronic payment of tax debts........................................ 49

8AAZMB.............. Saturdays, Sundays and public holidays........................... 49

8AAZN................. Overpayments made by the Commissioner under taxation laws              50

Part III—Prosecutions and offences                                                                        51

Division 1—Preliminary                                                                                            51

8A......................... Interpretation..................................................................... 51

8AC....................... Application of Part to the Tax Agent Services Act 2009.... 52

Division 2—Offences                                                                                                   53

Subdivision A—Failure to comply with taxation requirements                   53

8B.......................... Interpretation..................................................................... 53

8C.......................... Failure to comply with requirements under taxation law... 54

8D......................... Failure to answer questions when attending before the Commissioner etc.              55

8E.......................... Penalties for failure to comply with requirements under taxation law      56

8F.......................... Election to treat offence otherwise than as prescribed taxation offence    56

8G......................... Order to comply with requirement.................................... 57

8H......................... Penalty for failure to comply with order to comply........... 57

8HA...................... Court may order payment of amount in addition to penalty 58

Subdivision B—Offences relating to statements, records and certain other Acts          58

8J........................... Interpretation..................................................................... 58

8K.......................... False or misleading statements.......................................... 65

8L.......................... Incorrectly keeping records etc......................................... 67

8M......................... Penalties for offences against subsections 8K(1) and (1B) and 8L(1) and (1A)      68

8N......................... Recklessly making false or misleading statements............ 68

8Q......................... Recklessly incorrectly keeping records etc........................ 70

8R.......................... Penalties for offences against sections 8N and 8Q........... 70

8S.......................... Election to treat offence otherwise than as prescribed taxation offence    71

8T.......................... Incorrectly keeping records with intention of deceiving or misleading etc.              71

8U......................... Falsifying or concealing identity with intention of deceiving or misleading etc.       72

8V......................... Penalties for offences against sections 8T and 8U............ 73

8W......................... Court may order payment of amount in addition to penalty 73

Subdivision BAA—Offences relating to electronic sales suppression tools 77

8WAA................... Object of this Subdivision................................................ 77

8WAB................... Interpretation..................................................................... 77

8WAC................... Producing or supplying electronic sales suppression tools 78

8WAD................... Possessing electronic sales suppression tools................... 79

8WAE................... Incorrectly keeping records using electronic sales suppression tools       79

Subdivision BA—Offences relating to tax file numbers                                80

8WA...................... Unauthorised requirement etc. that tax file number be quoted  80

8WB...................... Unauthorised recording etc. of tax file number................. 81

8WC...................... Conducting affairs so as to avoid tax file number requirements               82

Subdivision C—Miscellaneous                                                                              84

8XA...................... Unauthorised access to taxation records........................... 84

8Y......................... Liability of officers etc. of corporations............................ 84

8Z.......................... Evidentiary certificate relating to previous convictions..... 85

Division 3—Prosecution of taxation offences                                                87

8ZA....................... Prosecution of taxation offences....................................... 87

8ZB....................... Prosecution may be commenced at any time..................... 88

8ZC....................... Place where offence committed......................................... 88

8ZD....................... Conduct by employees or agents of corporations............. 89

8ZE........................ Civil penalty not payable if prosecution instituted............. 89

8ZF........................ Penalties for corporations................................................. 90

8ZG....................... Enforcement of orders for payment.................................. 90

8ZH....................... Penalties not to relieve from tax........................................ 91

Division 4—Prescribed taxation offences                                                        92

8ZJ........................ Prosecution of prescribed taxation offences...................... 92

8ZK....................... Protection of witnesses..................................................... 93

8ZL........................ Averment.......................................................................... 94

8ZM...................... Evidence of authority to institute proceedings................... 94

8ZN....................... Costs................................................................................. 95

Division 5—Service of summons for prescribed taxation offences    96

9............................ Interpretation..................................................................... 96

10.......................... Service of summons by post............................................. 96

11.......................... Notice of conviction in absentia....................................... 97

12.......................... Notice of intention to issue warrant in default of payment 97

13.......................... Limitation of action to enforce payment of fine................. 98

13A....................... Setting aside of conviction or order.................................. 98

13B........................ Proof of service of summons or notice........................... 101

13C........................ Application of other laws................................................ 101

Division 6—Setting aside etc. of conviction or order on application of Commissioner                102

13CA..................... Setting aside etc. of conviction or order on application of Commissioner                102

Part IIIA—Co‑operation between Commonwealth and State taxation authorities          104

Division 1—Interpretation                                                                                     104

13D....................... Interpretation................................................................... 104

Division 2—Trans‑border investigations                                                       106

13E........................ State taxation officers may refer matters to Commissioner for investigation            106

13F........................ Access to documents etc................................................. 106

13G....................... Commissioner may obtain information and evidence...... 107

Division 4—Certification by State taxation officer of copies of, and extracts from, documents             109

13K........................ Certification by State taxation officer of copies of, and extracts from, documents   109

Division 5—Australian Taxation Office may perform functions under State/Territory debits tax laws                                                                                                                    111

13L........................ Australian Taxation Office may perform functions under State/Territory debits tax laws        111

Part IVA—Departure from Australia of certain tax debtors                 113

Division 1—Interpretation                                                                                     113

14Q....................... Interpretation................................................................... 113

Division 2—Prohibition and authorisation of departure of certain tax debtors               114

14R........................ Departure from Australia of certain tax debtors prohibited 114

14S........................ Departure prohibition orders........................................... 114

14T........................ Revocation and variation of departure prohibition orders 115

14U....................... Departure authorisation certificates................................. 116

Division 3—Appeals from, and review of, decisions of the Commissioner          119

14V....................... Appeals to courts against making of departure prohibition orders           119

14W....................... Jurisdiction of courts...................................................... 119

14X....................... Orders of court on appeal............................................... 119

14Y....................... Applications for review of certain decisions................... 120

Division 4—Enforcement                                                                                        121

14Z........................ Powers of authorised officers......................................... 121

14ZA..................... Certain tax debtors to produce authority to depart etc..... 122

Part IVC—Taxation objections, reviews and appeals                                 123

Division 1—Introduction                                                                                        123

14ZL...................... Part applies to taxation objections................................... 123

14ZM.................... Division 2—Interpretive................................................. 123

14ZN..................... Division 3—Taxation objections.................................... 123

14ZO..................... Division 4—Tribunal review.......................................... 123

14ZP...................... Division 5—Federal Court appeals................................. 123

Division 2—Interpretive provisions                                                                  124

14ZQ..................... General interpretation provisions.................................... 124

14ZR..................... Taxation decisions covered by single notice to be treated as single decision            125

14ZS...................... Ineligible income tax remission decisions....................... 126

Division 3—Taxation objections                                                                         127

14ZU..................... How taxation objections are to be made.......................... 127

14ZV..................... Limited objection rights in the case of certain amended taxation decisions               127

14ZVA.................. Limited objection rights because of other objections....... 127

14ZVB.................. Objections relating to excess concessional contributions 128

14ZVC.................. Objections relating to non‑concessional contributions.... 129

14ZW.................... When taxation objections are to be made........................ 130

14ZX..................... Commissioner to consider applications for extension of time  136

14ZY..................... Commissioner to decide taxation objections................... 136

14ZYA.................. Person may require Commissioner to make an objection decision           137

14ZYB.................. Requiring Commissioner to make a private ruling.......... 138

14ZZ...................... Person may seek review of, or appeal against, Commissioner’s decision                138

Division 4—AAT review of objection decisions and extension of time refusal decisions             140

14ZZA................... Modified AAT Act to apply........................................... 140

14ZZB................... Sections 27, 28, 41 and 44A of the AAT Act not to apply to certain decisions       140

14ZZC................... Modification of section 29 of the AAT Act.................... 140

14ZZD................... Modification of section 30 of the AAT Act.................... 141

14ZZE................... Hearings before Tribunal to be held in private if applicant so requests    141

14ZZF................... Modification of section 37 of the AAT Act.................... 141

14ZZG................... Modification of section 38 of the AAT Act.................... 142

14ZZJ.................... Modification of section 43 of the AAT Act.................... 143

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

14ZZL................... Implementation of Tribunal decisions............................. 144

14ZZM.................. Pending review not to affect implementation of taxation decisions          144

Division 5—Court appeals against objection decisions                          145

14ZZN................... Time limit for appeals..................................................... 145

14ZZO................... Grounds of objection and burden of proof..................... 145

14ZZP................... Order of court on objection decision............................... 145

14ZZQ................... Implementation of court order in respect of objection decision                145

14ZZR................... Pending appeal not to affect implementation of taxation decisions           146

14ZZS................... Transfer of certain proceedings to Family Court............. 146

Part IVD—Protection for whistleblowers                                                           149

14ZZT................... Disclosures qualifying for protection under this Part...... 149

14ZZU................... Eligible whistleblowers................................................... 150

14ZZV................... Eligible recipients............................................................ 151

14ZZW.................. Confidentiality of whistleblower’s identity..................... 152

14ZZX................... Disclosure that qualifies for protection not actionable etc. 153

14ZZY................... Victimisation prohibited.................................................. 154

14ZZZ................... Compensation and other remedies—circumstances in which an order may be made               155

14ZZZAA............. Detriment........................................................................ 157

14ZZZA................ Compensation and other remedies—orders that may be made 158

14ZZZB................. Identifying information not to be disclosed etc. to courts or tribunals      160

14ZZZC................. Costs only if proceedings instituted vexatiously etc........ 160

14ZZZD................ Interaction between civil proceedings and criminal offences 161

14ZZZE................. Compensation for acquisition of property....................... 161

Part V—Miscellaneous                                                                                                    162

15.......................... Appearance by Commissioner etc................................... 162

15A....................... Certification by Commissioner of copies of, and extracts from, documents             163

15B........................ Recoverable advances..................................................... 165

15C........................ Recoverable payments.................................................... 166

15D....................... Reports about recoverable advances and recoverable payments               168

16.......................... Payments out of Consolidated Revenue Fund................ 170

16A....................... Regulations may provide for methods of payment of tax liabilities etc.    171

16B........................ Certain liabilities to be reduced to nearest multiple of 5 cents.. 172

17.......................... Powers of taxation officers in relation to references to currency etc.        172

17A....................... Powers of Federal Court and Federal Circuit Court in respect of taxation matters   173

18.......................... Regulations..................................................................... 174

Schedule 1—Collection and recovery of income tax and other liabilities               175

Chapter 2—Collection, recovery and administration of income tax  175

Part 2‑1—Introduction to the Pay as you go (PAYG) system            175

Division 6—Guide to Parts 2‑5 and 2‑10                                                          175

6‑1......................... What Parts 2‑5 and 2‑10 are about.................................. 175

6‑5......................... The Pay as you go (PAYG) system............................... 175

6‑10....................... How the amounts collected are dealt with....................... 176

Part 2‑5—Pay as you go (PAYG) withholding                                           177

Division 10—Guide to Part 2‑5                                                                           177

10‑1....................... What this Part is about.................................................... 177

10‑5....................... Summary of withholding payments................................ 177

Division 11—Preliminary matters                                                                    180

11‑1....................... Object of this Part........................................................... 180

11‑5....................... Constructive payment..................................................... 180

Division 12—Payments from which amounts must be withheld                 182

Subdivision 12‑A—General rules                                                                       182

12‑1....................... General exceptions.......................................................... 182

12‑5....................... What to do if more than one provision requires a withholding 184

12‑7....................... Division does not apply to alienated personal services payments             185

12‑10..................... Division does not apply to non‑cash benefits................. 186

12‑20..................... Application of Division and regulations to non‑share dividends              186

Subdivision 12‑B—Payments for work and services                                    186

12‑35..................... Payment to employee...................................................... 187

12‑40..................... Payment to company director.......................................... 187

12‑45..................... Payment to office holder................................................. 187

12‑47..................... Payment to religious practitioners................................... 188

12‑50..................... Return to work payment................................................. 188

12‑55..................... Voluntary agreement to withhold.................................... 188

12‑60..................... Payment under labour hire arrangement, or specified by regulations       189

Subdivision 12‑C—Payments for retirement or because of termination of employment            190

12‑80..................... Superannuation income streams and annuities................ 190

12‑85..................... Superannuation lump sums and payments for termination of employment              190

12‑90..................... Unused leave payments.................................................. 191

Subdivision 12‑D—Benefit and compensation payments                             191

12‑110................... Social Security or other benefit payment......................... 191

12‑115................... Commonwealth education or training payment............... 192

12‑120................... Compensation, sickness or accident payment................. 192

Subdivision 12‑E—Payments where TFN or ABN not quoted                    192

Payment in respect of investment                                                                       193

12‑140................... Recipient does not quote tax file number........................ 193

12‑145................... Investor becoming presently entitled to income of a unit trust  194

12‑150................... Limited application of section 12‑140 to payment under financial arrangement       195

12‑152................... Limited application of section 12‑140 to payment covered by section 12A‑205      196

12‑155................... When investor may quote ABN as alternative................ 196

12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying                197

12‑165................... Exception for fully franked dividend.............................. 197

12‑170................... Exception for payments below thresholds set by regulations 197

Payment of income of closely held trust where TFN not quoted                198

12‑175................... Trustee distributes income of closely held trust.............. 198

12‑180................... Beneficiary becomes presently entitled to income of closely held trust    200

12‑185................... Exception for payments below thresholds set by regulations 201

Payment for a supply                                                                                            201

12‑190................... Recipient does not quote ABN....................................... 201

Subdivision 12‑F—Dividend, interest and royalty payments                      204

Dividends           205

12‑210................... Dividend payment to overseas person............................ 205

12‑215................... Dividend payment received for foreign resident............. 205

12‑220................... Application to part of a dividend..................................... 206

12‑225................... Application to distribution by a liquidator or other person 206

Interest               207

12‑245................... Interest payment to overseas person............................... 207

12‑250................... Interest payment received for foreign resident................ 207

12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 208

12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment        208

Royalties            209

12‑280................... Royalty payment to overseas person............................... 209

12‑285................... Royalty payment received for foreign resident................ 209

General              210

12‑300................... Limits on amount withheld under this Subdivision......... 210

Subdivision 12‑FA—Departing Australia superannuation payments       210

12‑305................... Departing Australia superannuation payment................. 211

12‑310................... Limits on amount withheld under this Subdivision......... 211

Subdivision 12‑FAA—Excess untaxed roll‑over amount                             211

12‑312................... Untaxed roll‑over superannuation benefits..................... 211

12‑313................... Limits on amount withheld under this Subdivision......... 211

Subdivision 12‑FB—Payments to foreign residents etc.                               212

12‑315................... Payment to foreign resident etc....................................... 212

12‑317................... Payment received for foreign resident etc....................... 213

12‑319................... Exemptions from withholding obligations under this Subdivision           215

Subdivision 12‑FC—Seasonal Labour Mobility Program                          216

12‑319A................ Payment to employee...................................................... 216

Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources                216

Mining on Aboriginal land                                                                                  217

12‑320................... Mining payment.............................................................. 217

Natural resources                                                                                                   217

12‑325................... Natural resource payment............................................... 217

12‑330................... Payer must ask Commissioner how much to withhold... 218

12‑335................... Commissioner may exempt from section 12‑330, subject to conditions   218

Subdivision 12‑H—Distributions of withholding MIT income                   219

Guide to Subdivision 12‑H                                                                                   219

12‑375................... What this Subdivision is about....................................... 219

Operative provisions                                                                                             221

12‑383................... Meaning of withholding MIT.......................................... 221

12‑385................... Withholding by withholding MITs................................. 222

12‑390................... Withholding by custodians and other entities.................. 223

12‑395................... Requirement to give notice or make information available 226

12‑405................... Meaning of fund payment—general case........................ 229

12‑410................... Entity to whom payment is made.................................... 232

12‑415................... Failure to give notice or make information available: administrative penalty            232

12‑420................... Agency rules................................................................... 233

12‑425................... Meaning of clean building managed investment trust.... 233

12‑430................... Meaning of clean building.............................................. 234

12‑435................... Meaning of non‑concessional MIT income.................... 235

12‑436................... Meaning of asset entity, operating entity, cross staple arrangement and stapled entity           236

12‑437................... Meaning of MIT cross staple arrangement income....... 237

12‑438................... MIT cross staple arrangement income—de minimis exception                239

12‑439................... MIT cross staple arrangement income—approved economic infrastructure facility exception 241

12‑440................... Transitional—MIT cross staple arrangement income...... 242

12‑441................... Integrity rule—concessional cross staple rent cap........... 245

12‑442................... Meaning of excepted MIT CSA income........................... 246

12‑443................... Concessional cross staple rent cap—existing lease with specified rent or rent method            246

12‑444................... Concessional cross staple rent cap—general................... 247

12‑445................... Asset entity to allocate deductions first against rental income that is not MIT cross staple arrangement income........................................................................................ 249

12‑446................... Meaning of MIT trading trust income............................ 250

12‑447................... Transitional—MIT trading trust income......................... 251

12‑448................... Meaning of MIT agricultural income, Australian agricultural land for rent and Division 6C land        252

12‑449................... Transitional—MIT agricultural income........................... 253

12‑450................... Meaning of MIT residential housing income.................. 254

12‑451................... Transitional—MIT residential housing income............... 255

12‑452................... Meaning of residential dwelling asset............................ 257

12‑453................... MIT agricultural income and MIT residential housing income—capital gains in relation to membership interests........................................................................... 257

Subdivision 12‑J—FHSS released amounts                                                     259

12‑460................... FHSS released amounts.................................................. 259

Division 12A—Distributions by AMITs (including deemed payments)    260

Guide to Division 12A                                                                                           260

12A‑1.................... What this Division is about............................................. 260

Subdivision 12A‑A—Distributions by AMITs relating to dividend, interest and royalties          261

Guide to Subdivision 12A‑A                                                                                 261

12A‑5.................... What this Subdivision is about....................................... 261

Operative provisions                                                                                             261

12A‑10.................. Deemed payments—no obligation to withhold under Subdivision 12‑F (dividend, interest and royalty payments)....................................................................... 261

12A‑15.................. Dividend, interest or royalty payments relating to AMIT—requirement to give notice or make information available.......................................................................... 262

12A‑20.................. Failure to give notice or make information available under section 12A‑15: administrative penalty         265

12A‑25.................. Meaning of AMIT DIR payment..................................... 265

12A‑30.................. Meaning of AMIT dividend payment.............................. 266

12A‑35.................. Meaning of AMIT interest payment................................ 267

12A‑40.................. Meaning of AMIT royalty payment................................. 268

Subdivision 12A‑B—Distributions by AMITs relating to Subdivision 12‑H fund payments       269

Guide to Subdivision 12A‑B                                                                                 269

12A‑100................ What this Subdivision is about....................................... 269

Operative provisions                                                                                             269

12A‑105................ Deemed payments—no obligation to withhold under Subdivision 12‑H 269

12A‑110................ Meaning of fund payment—AMITs............................... 270

Subdivision 12A‑C—Deemed payments by AMITs etc.                                274

Guide to Subdivision 12A‑C                                                                                 274

12A‑200................ What this Subdivision is about....................................... 274

Operative provisions                                                                                             275

12A‑205................ Issue of AMMA statement etc. deemed to be payment... 275

12A‑210................ Post‑AMMA actual payment and pre‑AMMA actual payment in respect of deemed payment  277

12A‑215................ AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc. 278

12A‑220................ Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc.           279

Division 13—Alienated personal services payments                                     282

13‑1....................... Object of this Division.................................................... 282

13‑5....................... Payment to the Commissioner in respect of alienated personal services payments   282

13‑10..................... Alienated personal services payments............................. 285

13‑15..................... Personal services payment remitters............................... 286

13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01    287

Division 14—Benefits, gains and taxable supplies for which amounts must be paid to the Commissioner             288

Subdivision 14‑A—Non‑cash benefits                                                               288

14‑1....................... Object of this Subdivision.............................................. 288

14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding..................................................................... 288

14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit              289

14‑15..................... Payer can recover amount paid to the Commissioner...... 290

Subdivision 14‑B—Accruing gains                                                                    290

14‑50..................... Object of this Subdivision.............................................. 290

14‑55..................... Liability for TFN withholding tax................................... 291

14‑60..................... Investment body may recover TFN withholding tax from investor          292

14‑65..................... Application of rules in Division 18................................. 292

14‑75..................... Overpayment of TFN withholding tax............................ 293

14‑85..................... Other laws do not exempt from TFN withholding tax.... 293

Subdivision 14‑C—Shares and rights under employee share schemes     294

14‑155................... Liability for TFN withholding tax (ESS)........................ 294

14‑160................... Employer may give individual tax file numbers to provider 295

14‑165................... Provider may recover TFN withholding tax (ESS) from individual         295

14‑170................... Application of rules in Division 18................................. 296

14‑175................... Overpayment of TFN withholding tax (ESS)................. 296

14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997  296

Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property        297

14‑200................... Certain acquisitions of taxable Australian property from foreign residents              297

14‑205................... Effect of look‑through earnout rights.............................. 298

14‑210................... Whether an entity is a relevant foreign resident............... 299

14‑215................... Excluded transactions..................................................... 301

14‑220................... Commissioner clearance certificates................................ 303

14‑225................... Entity declarations........................................................... 303

14‑230................... Administrative penalties for false or misleading declarations 304

14‑235................... Varying amounts to be paid to the Commissioner.......... 305

Subdivision 14‑E—GST payable on taxable supplies of certain real property              306

14‑250................... Recipients of certain taxable supplies of real property must pay amounts to Commissioner    307

14‑255................... Notification by suppliers of residential premises etc....... 309

Division 15—Working out the amount to withhold                                       312

Guide to Division 15                                                                                              312

15‑1....................... What this Division is about............................................. 312

Subdivision 15‑A—Working out how much to withhold                              312

15‑10..................... How much to withhold................................................... 313

15‑15..................... Variation of amounts required to be withheld................. 313

Subdivision 15‑B—Withholding schedules and regulations                        314

15‑25..................... Commissioner’s power to make withholding schedules. 314

15‑30..................... Matters to be considered when making withholding schedules                315

15‑35..................... Regulations about withholding....................................... 316

Subdivision 15‑C—Declarations                                                                        317

15‑50..................... Declarations.................................................................... 317

Division 16—Payer’s obligations and rights                                                   319

Guide to Division 16                                                                                              319

16‑1....................... What this Division is about............................................. 319

Subdivision 16‑A—To withhold                                                                          319

When to withhold                                                                                                    320

16‑5....................... When to withhold an amount.......................................... 320

16‑7....................... Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12     320

16‑20..................... Payer discharged from liability to recipient for amount withheld             321

Penalties for not withholding                                                                              321

16‑25..................... Failure to withhold: offence............................................ 321

16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 322

16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty............................ 323

16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment.............................................. 324

16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.......................................................... 324

Subdivision 16‑B—To pay withheld amounts to the Commissioner         325

When and how to pay amounts to the Commissioner                                    325

16‑70..................... Entity to pay amounts to Commissioner......................... 325

16‑75..................... When amounts must be paid to Commissioner............... 326

16‑80..................... Penalty for failure to pay within time.............................. 328

16‑85..................... How amounts are to be paid........................................... 328

Who is a large, medium or small withholder                                                  329

16‑95..................... Meaning of large withholder.......................................... 329

16‑100................... Meaning of medium withholder...................................... 330

16‑105................... Meaning of small withholder.......................................... 330

16‑110................... Commissioner may vary withholder’s status downwards 330

16‑115................... Commissioner may vary withholder’s status upwards... 331

Subdivision 16‑BA—To be registered                                                               332

Registration of withholders                                                                                 333

16‑140................... Withholders must be registered....................................... 333

16‑141................... Registration and cancellation........................................... 334

Branch registration                                                                                               334

16‑142................... Branches may be registered............................................ 334

16‑143................... Separate amounts for entities and branches..................... 335

16‑144................... Cancellation of branch registration.................................. 335

16‑145................... Effect on branches of cancelling the entity’s registration 335

Registration of employers of working holiday makers                                336

16‑146................... Employers of working holiday makers must be registered 336

16‑147................... Registering employers of working holiday makers......... 336

16‑148................... Cancelling the registration of employers of working holiday makers       338

Subdivision 16‑C—To provide information                                                   340

To the Commissioner                                                                                            340

16‑150................... Commissioner must be notified of amounts.................... 340

16‑152................... Annual reports—Withholding payments covered by section 12‑175       341

16‑153................... Annual reports—other payments.................................... 342

To recipients of withholding payments                                                             345

16‑155................... Annual payment summary.............................................. 345

16‑156................... Annual payment summary for sections 12‑175 and 12‑180 347

16‑157................... Payment summary for Subdivision 12‑H....................... 347

16‑160................... Part‑year payment summary........................................... 348

16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment         349

16‑166................... Payment summary for a departing Australia superannuation payment     350

16‑167................... Payment summary for payment to recipient who does not quote ABN    350

16‑170................... Form and content of payment summary.......................... 351

16‑175................... Penalty for not providing payment summary.................. 352

16‑180................... Commissioner may exempt entity from giving payment summary           353

16‑182................... Definition of reportable employer superannuation contribution             353

Subdivision 16‑D—Additional rights and obligations of entity that makes a payment                354

16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes    354

Division 18—Recipient’s entitlements and obligations                                 356

Subdivision 18‑A—Crediting withheld amounts                                            356

Guide to Subdivision 18‑A                                                                                    356

18‑1....................... What this Subdivision is about....................................... 356

General exception                                                                                                  358

18‑5....................... No credit for refunded amount........................................ 358

Entitlement to credits: income tax liability                                                     358

18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 358

18‑15..................... Tax credit for recipient of withholding payments............ 359

18‑20..................... Tax credit where recipient is a partnership...................... 359

18‑25..................... Tax credit where recipient is a trust................................. 360

18‑27..................... Tax credit for alienated personal services payments........ 362

Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program                                                                    362

18‑30..................... Credit: dividend, interest or royalty................................. 362

18‑32..................... Credit: amount attributable to fund payment................... 363

18‑33..................... Credit: Seasonal Labour Mobility Program.................... 364

18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge               364

18‑40..................... Credit: liability under Part 4‑25....................................... 366

Entitlement to credit: departing Australia superannuation payment       368

18‑42..................... Credit—departing Australia superannuation payment..... 368

Entitlement to credit: mining payment                                                             369

18‑45..................... Credit—mining payment................................................. 369

Entitlement to credit: Petroleum resource rent tax                                       370

18‑55..................... Credit—Natural resource payments................................ 370

Entitlement to credit: taxable supply of real property                                 370

18‑60..................... Credit—payment relating to taxable supply of real property 370

Subdivision 18‑B—Refund of certain withheld amounts                             371

18‑65..................... Refund of withheld amounts by the payer to the recipient 371

18‑70..................... Refund of withheld amounts by the Commissioner to the recipient         374

18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment           376

18‑85..................... Refund by Commissioner of amount withheld from payment in respect of supply of real property        377

Subdivision 18‑C—Recipient’s obligations                                                      377

18‑100................... Obligation to keep payment summary............................. 377

Subdivision 18‑D—Directors etc. of non‑complying companies                378

Object of Subdivision                                                                                            379

18‑120................... Object of Subdivision..................................................... 379

PAYG withholding non‑compliance tax                                                           379

18‑125................... Directors of non‑complying companies.......................... 379

18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances       381

18‑135................... Associates of directors of non‑complying companies..... 382

18‑140................... Notices............................................................................ 386

18‑145................... When PAYG withholding non‑compliance tax must be paid.. 387

18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax               388

18‑155................... Validity of decisions and evidence.................................. 388

18‑160................... Rights of indemnity and contribution.............................. 389

Credits for later compliance                                                                               390

18‑165................... Credits for later compliance—scope............................... 390

18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances          390

18‑175................... Credits for later compliance—Commissioner may give notice 392

18‑180................... Effect of earlier credits.................................................... 393

Other provisions                                                                                                     394

18‑185................... When Commissioner may give notice............................. 394

18‑190................... Review of decisions........................................................ 395

Division 20—Other matters                                                                                 396

Subdivision 20‑B—Offences                                                                                396

20‑35..................... Offences......................................................................... 396

20‑40..................... Joining of charges........................................................... 397

20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company    398

Subdivision 20‑D—Review of decisions                                                            399

20‑80..................... Reviewable decisions...................................................... 399

Division 21—Entitlements relating to insolvent ADIs and general insurers 401

Guide to Division 21                                                                                              401

21‑1....................... What this Division is about............................................. 401

Subdivision 21‑A—Treatment of some payments by APRA                       401

21‑5....................... APRA treated like ADI or general insurance company.. 401

Part 2‑10—Pay as you go (PAYG) instalments                                          403

Division 45—Instalment payments                                                                    403

Guide to Division 45                                                                                              404

45‑1....................... What this Division is about............................................. 404

Subdivision 45‑A—Basic rules                                                                            405

45‑5....................... Object of this Part........................................................... 405

45‑10..................... Application of Part.......................................................... 407

45‑15..................... Liability for instalments.................................................. 407

45‑20..................... Information to be given to the Commissioner by certain payers               408

45‑25..................... Penalty for failure to notify Commissioner..................... 409

45‑30..................... Credit for instalments payable......................................... 409

Subdivision 45‑B—When instalments are due                                                410

45‑50..................... Liability to pay instalments............................................. 410

45‑60..................... Meaning of instalment quarter....................................... 411

45‑61..................... When quarterly instalments are due—payers of quarterly instalments     412

45‑65..................... Meaning of instalment month......................................... 413

45‑67..................... When monthly instalments are due—payers of monthly instalments       413

45‑70..................... When annual instalments are due.................................... 414

45‑72..................... Means of payment of instalment..................................... 414

45‑75..................... Instalments recoverable in same way as income tax........ 414

45‑80..................... General interest charge on late payment.......................... 414

45‑90..................... Commissioner may withdraw instalment rate................. 414

Subdivision 45‑C—Working out instalment amounts                                   415

45‑110................... How to work out amount of quarterly instalment on instalment income basis         415

45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax   416

45‑114................... How to work out amount of monthly instalment............ 417

45‑115................... How to work out amount of annual instalment............... 418

45‑120................... Meaning of instalment income........................................ 419

Subdivision 45‑D—Quarterly payers                                                                423

45‑125................... Quarterly payer who pays instalments on the basis of instalment income                423

45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax     425

45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 427

45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 428

Subdivision 45‑DA—Monthly payers                                                                430

45‑136................... Monthly payer................................................................ 430

45‑138................... Monthly payer requirement............................................. 431

Subdivision 45‑E—Annual payers                                                                     432

When you start and stop being an annual payer                                            433

45‑140................... Choosing to pay annual instalments................................ 433

45‑145................... Meaning of instalment group......................................... 434

45‑150................... Entity stops being annual payer if involved with GST registration or instalment group           435

45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly      436

45‑160................... Head company of a consolidated group stops being annual payer           437

Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income                                                                                         437

45‑200................... Application..................................................................... 438

45‑205................... Choosing a varied instalment rate................................... 438

45‑210................... Notifying Commissioner of varied instalment rate.......... 439

45‑215................... Credit on using varied rate in certain cases..................... 439

Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low              440

45‑225................... Effect of Subdivision in relation to monthly payers........ 440

45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate     441

45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax........................................................................................ 442

45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment      451

45‑235................... Liability to GIC on shortfall in annual instalment........... 452

45‑240................... Commissioner may remit general interest charge............ 454

Subdivision 45‑H—Partnership income                                                           454

45‑260................... Instalment income for a period in which you are in a partnership            454

Subdivision 45‑I—Trust income included in instalment income of beneficiary            455

45‑280................... Instalment income for a period in which you are a beneficiary of a trust  456

45‑285................... Instalment income includes distributions by certain resident unit trusts   458

45‑286................... Instalment income includes distributions by certain managed investment trusts       460

45‑287................... When trusts are disqualified due to concentrated ownership 460

45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled  462

45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income                463

Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax          463

45‑320................... Working out instalment rate............................................ 463

45‑325................... Working out your notional tax........................................ 464

45‑330................... Working out your adjusted taxable income.................... 466

45‑335................... Working out your adjusted withholding income............. 468

45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income           468

Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax             471

45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax      471

45‑360................... How Commissioner works out benchmark instalment rate 472

45‑365................... Working out your benchmark tax................................... 472

45‑370................... Working out your adjusted assessed taxable income for the variation year             473

45‑375................... Adjusted assessed tax on adjusted assessed taxable income 474

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    477

45‑402................... Working out amount of instalment—payers of 2 quarterly instalments    479

45‑405................... Working out your GDP‑adjusted notional tax................ 481

Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax                                                                                                 482

45‑410................... Working out amount of instalment—payers of 4 quarterly instalments    483

45‑412................... Working out amount of instalment—payers of 2 quarterly instalments    485

45‑415................... Estimating your benchmark tax....................................... 486

45‑420................... Credit in certain cases where amount of instalment is nil 487

Subdivision 45‑N—How this Part applies to the trustee of a trust             488

Trustees to whom this Part applies                                                                    488

45‑450................... Trustees to whom a single instalment rate is given......... 488

45‑455................... Trustees to whom several instalment rates are given....... 489

45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 490

45‑465................... Meaning of instalment income........................................ 490

45‑468................... Multi‑rate trustee may pay quarterly instalments............. 491

How Commissioner works out instalment rate and notional tax for a multi‑rate trustee            491

45‑470................... Working out instalment rate............................................ 491

45‑473................... Commissioner must notify you of notional tax............... 492

45‑475................... Working out your notional tax........................................ 492

45‑480................... Working out your adjusted taxable income.................... 493

45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share         493

45‑485................... Working out your adjusted withholding income............. 494

How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee                495

45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax      495

45‑530................... How Commissioner works out benchmark instalment rate 495

45‑535................... Working out your benchmark tax................................... 496

Subdivision 45‑P—Anti‑avoidance rules                                                          496

45‑595................... Object of this Subdivision.............................................. 497

45‑597................... Effect of Subdivision in relation to instalment months.... 497

45‑600................... General interest charge on tax benefit relating to instalments 497

45‑605................... When do you get a tax benefit from a scheme?............... 499

45‑610................... What is your tax position for an income year?................ 500

45‑615................... What is your hypothetical tax position for an income year? 502

45‑620................... Amount on which GIC is payable, and period for which it is payable     502

45‑625................... Credit if you also got a tax detriment from the scheme... 503

45‑630................... When do you get a tax detriment from a scheme?........... 504

45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides                505

45‑640................... Commissioner may remit general interest charge in special cases            507

Subdivision 45‑Q—General rules for consolidated groups                         507

Guide to Subdivision 45‑Q                                                                                   507

45‑700................... What this Subdivision is about....................................... 507

Application of Subdivision                                                                                   508

45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers       508

45‑705................... Application of Subdivision to head company................. 509

Usual operation of this Part for consolidated group members                  513

45‑710................... Single entity rule............................................................. 513

45‑715................... When instalments are due—modification of section 45‑61 514

45‑720................... Head company cannot be an annual payer—modification of section 45‑140           514

Membership changes                                                                                             514

45‑740................... Change of head company................................................ 514

45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group)              517

45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group)           518

45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax   520

Subdivision 45‑R—Special rules for consolidated groups                           522

Guide to Subdivision 45‑R                                                                                    522

45‑850................... What this Subdivision is about....................................... 522

Operative provisions                                                                                             523

45‑855................... Section 701‑1 disregarded for certain purposes.............. 523

45‑860................... Member having a different instalment period.................. 523

45‑865................... Credit rule....................................................................... 524

45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment       526

45‑875................... Other rules about the general interest charge................... 529

45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group          530

45‑885................... Early application of Subdivision 45‑Q to the head company of a new group           532

Subdivision 45‑S—MEC groups                                                                         533

Guide to Subdivision 45‑S                                                                                    533

45‑900................... What this Subdivision is about....................................... 533

Preliminary      534

45‑905................... Objects of Subdivision................................................... 534

General modification rules                                                                                  535

45‑910................... Extended operation of Part to cover MEC groups.......... 535

Extended operation of Subdivision 45‑Q                                                         536

45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups  536

45‑915................... Application of Subdivision 45‑Q to provisional head company               536

45‑917................... Assumption for applying section 45‑710 (single entity rule) 540

45‑920................... Change of provisional head company............................. 540

45‑922................... Life insurance company.................................................. 543

Extended operation of Subdivision 45‑R                                                          544

45‑925................... Additional modifications of sections 45‑855 and 45‑860 544

45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision     544

45‑935................... Additional modifications of section 45‑885.................... 545

Part 2‑15—Returns and assessments                                                               546

Division 70—Tax receipts                                                                                    546

Guide to Division 70                                                                                              546

70‑1....................... What this Division is about............................................. 546

Subdivision 70‑A—Tax receipts                                                                         546

70‑5....................... Tax receipt to be provided to certain individual taxpayers 547

Part 2‑30—Collecting Medicare levy with income tax                           549

Division 90—Medicare levy and Medicare levy surcharge                        549

Subdivision 90‑A—Treatment like income tax                                               549

90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 549

Part 2‑35—Excess superannuation contributions                                     550

Division 95—Excess concessional contributions charge                              550

Guide to Division 95                                                                                              550

95‑1....................... What this Division is about............................................. 550

Subdivision 95‑A—Object of Division                                                              550

95‑5....................... Object of Division.......................................................... 550

Subdivision 95‑B—Excess concessional contributions charge                   551

95‑10..................... Liability to excess concessional contributions charge..... 551

95‑15..................... Amount of excess concessional contributions charge..... 552

95‑20..................... When excess concessional contributions charge is due and payable        552

95‑25..................... General interest charge.................................................... 553

Division 97—Excess contributions determinations                                       554

Subdivision 97‑A—Excess concessional contributions determinations    554

Guide to Subdivision 97‑A                                                                                    554

97‑1....................... What this Subdivision is about....................................... 554

Operative provisions                                                                                             554

97‑5....................... Determination of excess concessional contributions and charge              554

97‑10..................... Review............................................................................ 555

Subdivision 97‑B—Excess non‑concessional contributions determinations 555

Guide to Subdivision 97‑B                                                                                    555

97‑20..................... What this Subdivision is about....................................... 555

Operative provisions                                                                                             556

97‑25..................... Excess non‑concessional contributions determinations... 556

97‑30..................... Associated earnings........................................................ 556

97‑35..................... Review............................................................................ 557

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 corporate country by country reporting entities

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

                     (a)  the entity is a country by country reporting 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.

          (1A)  However, this section does not apply to a corporate tax entity for an income year if:

                     (a)  the entity is a government related entity (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999); and

                     (b)  the Commissioner has given notice to the entity for the income year under subsection (1B).

          (1B)  For the purposes of paragraph (1A)(b), the Commissioner may give notice in writing to a government related entity (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999) for one or more specified income years if the Commissioner considers that it is appropriate to do so.

             (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<