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................................. 27
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 55
8F.......................... Election to treat offence otherwise than as prescribed taxation offence 56
8G......................... Order to comply with requirement.................................... 56
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.......................................... 64
8L.......................... Incorrectly keeping records etc......................................... 66
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........................ 69
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 108
13K........................ Certification by State taxation officer of copies of, and extracts from, documents 108
Division 5—Australian Taxation Office may perform functions under State/Territory debits tax laws 110
13L........................ Australian Taxation Office may perform functions under State/Territory debits tax laws 110
Part IVA—Departure from Australia of certain tax debtors 112
Division 1—Interpretation 112
14Q....................... Interpretation................................................................... 112
Division 2—Prohibition and authorisation of departure of certain tax debtors 113
14R........................ Departure from Australia of certain tax debtors prohibited 113
14S........................ Departure prohibition orders........................................... 113
14T........................ Revocation and variation of departure prohibition orders 114
14U....................... Departure authorisation certificates................................. 115
Division 3—Appeals from, and review of, decisions of the Commissioner 118
14V....................... Appeals to courts against making of departure prohibition orders 118
14W....................... Jurisdiction of courts...................................................... 118
14X....................... Orders of court on appeal............................................... 118
14Y....................... Applications for review of certain decisions................... 119
Division 4—Enforcement 120
14Z........................ Powers of authorised officers......................................... 120
14ZA..................... Certain tax debtors to produce authority to depart etc..... 121
Part IVC—Taxation objections, reviews and appeals 122
Division 1—Introduction 122
14ZL...................... Part applies to taxation objections................................... 122
14ZM.................... Division 2—Interpretive................................................. 122
14ZN..................... Division 3—Taxation objections.................................... 122
14ZO..................... Division 4—Tribunal review.......................................... 122
14ZP...................... Division 5—Federal Court appeals................................. 122
Division 2—Interpretive provisions 123
14ZQ..................... General interpretation provisions.................................... 123
14ZR..................... Taxation decisions covered by single notice to be treated as single decision 124
14ZS...................... Ineligible income tax remission decisions....................... 125
Division 3—Taxation objections 126
14ZU..................... How taxation objections are to be made.......................... 126
14ZV..................... Limited objection rights in the case of certain amended taxation decisions 126
14ZVA.................. Limited objection rights because of other objections....... 126
14ZVB.................. Objections relating to excess concessional contributions 127
14ZVC.................. Objections relating to non‑concessional contributions.... 128
14ZW.................... When taxation objections are to be made........................ 129
14ZX..................... Commissioner to consider applications for extension of time 135
14ZY..................... Commissioner to decide taxation objections................... 135
14ZYA.................. Person may require Commissioner to make an objection decision 136
14ZYB.................. Requiring Commissioner to make a private ruling.......... 137
14ZZ...................... Person may seek review of, or appeal against, Commissioner’s decision 137
Division 4—AAT review of objection decisions and extension of time refusal decisions 139
14ZZA................... Modified AAT Act to apply........................................... 139
14ZZB................... Sections 27, 28, 41 and 44A of the AAT Act not to apply to certain decisions 139
14ZZC................... Modification of section 29 of the AAT Act.................... 139
14ZZD................... Modification of section 30 of the AAT Act.................... 140
14ZZE................... Hearings before Tribunal to be held in private if applicant so requests 140
14ZZF................... Modification of section 37 of the AAT Act.................... 140
14ZZG................... Modification of section 38 of the AAT Act.................... 141
14ZZJ.................... Modification of section 43 of the AAT Act.................... 142
14ZZK................... Grounds of objection and burden of proof..................... 142
14ZZL................... Implementation of Tribunal decisions............................. 143
14ZZM.................. Pending review not to affect implementation of taxation decisions 143
Division 5—Court appeals against objection decisions 144
14ZZN................... Time limit for appeals..................................................... 144
14ZZO................... Grounds of objection and burden of proof..................... 144
14ZZP................... Order of court on objection decision............................... 144
14ZZQ................... Implementation of court order in respect of objection decision 144
14ZZR................... Pending appeal not to affect implementation of taxation decisions 145
14ZZS................... Transfer of certain proceedings to Family Court............. 145
Part IVD—Protection for whistleblowers 148
14ZZT................... Disclosures qualifying for protection under this Part...... 148
14ZZU................... Eligible whistleblowers................................................... 149
14ZZV................... Eligible recipients............................................................ 149
14ZZW.................. Confidentiality of whistleblower’s identity..................... 150
14ZZX................... Disclosure that qualifies for protection not actionable etc. 152
14ZZY................... Victimisation prohibited.................................................. 152
14ZZZ................... Compensation and other remedies—circumstances in which an order may be made 154
14ZZZAA............. Detriment........................................................................ 156
14ZZZA................ Compensation and other remedies—orders that may be made 157
14ZZZB................. Identifying information not to be disclosed etc. to courts or tribunals 159
14ZZZC................. Costs only if proceedings instituted vexatiously etc........ 159
14ZZZD................ Interaction between civil proceedings and criminal offences 160
14ZZZE................. Compensation for acquisition of property....................... 160
Part V—Miscellaneous 161
15.......................... Appearance by Commissioner etc................................... 161
15A....................... Certification by Commissioner of copies of, and extracts from, documents 162
15B........................ Recoverable advances..................................................... 164
15C........................ Recoverable payments.................................................... 165
15D....................... Reports about recoverable advances and recoverable payments 167
16.......................... Payments out of Consolidated Revenue Fund................ 169
16A....................... Regulations may provide for methods of payment of tax liabilities etc. 170
16B........................ Certain liabilities to be reduced to nearest multiple of 5 cents.. 171
17.......................... Powers of taxation officers in relation to references to currency etc. 171
17A....................... Powers of Federal Court and Federal Circuit Court in respect of taxation matters 172
18.......................... Regulations..................................................................... 173
Schedule 1—Collection and recovery of income tax and other liabilities 174
Chapter 2—Collection, recovery and administration of income tax 174
Part 2‑1—Introduction to the Pay as you go (PAYG) system 174
Division 6—Guide to Parts 2‑5 and 2‑10 174
6‑1......................... What Parts 2‑5 and 2‑10 are about.................................. 174
6‑5......................... The Pay as you go (PAYG) system............................... 174
6‑10....................... How the amounts collected are dealt with....................... 175
Part 2‑5—Pay as you go (PAYG) withholding 176
Division 10—Guide to Part 2‑5 176
10‑1....................... What this Part is about.................................................... 176
10‑5....................... Summary of withholding payments................................ 176
Division 11—Preliminary matters 179
11‑1....................... Object of this Part........................................................... 179
11‑5....................... Constructive payment..................................................... 179
Division 12—Payments from which amounts must be withheld 181
Subdivision 12‑A—General rules 181
12‑1....................... General exceptions.......................................................... 182
12‑5....................... What to do if more than one provision requires a withholding 183
12‑7....................... Division does not apply to alienated personal services payments 185
12‑10..................... Division does not apply to non‑cash benefits................. 185
12‑20..................... Application of Division and regulations to non‑share dividends 185
Subdivision 12‑B—Payments for work and services 186
12‑35..................... Payment to employee...................................................... 186
12‑40..................... Payment to company director.......................................... 186
12‑45..................... Payment to office holder................................................. 186
12‑47..................... Payment to religious practitioners................................... 187
12‑50..................... Return to work payment................................................. 187
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.................................................. 190
Subdivision 12‑D—Benefit and compensation payments 190
12‑110................... Social Security or other benefit payment......................... 191
12‑115................... Commonwealth education or training payment............... 191
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 196
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 197
12‑175................... Trustee distributes income of closely held trust.............. 197
12‑180................... Beneficiary becomes presently entitled to income of closely held trust 199
12‑185................... Exception for payments below thresholds set by regulations 200
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 206
12‑245................... Interest payment to overseas person............................... 206
12‑250................... Interest payment received for foreign resident................ 207
12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 207
12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment 208
Royalties 208
12‑280................... Royalty payment to overseas person............................... 208
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................. 210
12‑310................... Limits on amount withheld under this Subdivision......... 210
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 214
Subdivision 12‑FC—Seasonal Labour Mobility Program 215
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 216
12‑320................... Mining payment.............................................................. 216
Natural resources 217
12‑325................... Natural resource payment............................................... 217
12‑330................... Payer must ask Commissioner how much to withhold... 217
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................................. 221
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 235
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 240
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........................................................................................ 248
12‑446................... Meaning of MIT trading trust income............................ 249
12‑447................... Transitional—MIT trading trust income......................... 250
12‑448................... Meaning of MIT agricultural income, Australian agricultural land for rent and Division 6C land 251
12‑449................... Transitional—MIT agricultural income........................... 252
12‑450................... Meaning of MIT residential housing income.................. 254
12‑451................... Transitional—MIT residential housing income............... 255
12‑452................... Meaning of residential dwelling asset............................ 256
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 433
When you start and stop being an annual payer 433
45‑140................... Choosing to pay annual instalments................................ 433
45‑145................... Meaning of instalment group......................................... 435
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 438
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........ 441
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........................................................................................ 443
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 478
45‑405................... Working out your GDP‑adjusted notional tax................ 480
Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax 482
45‑410................... Working out amount of instalment—payers of 4 quarterly instalments 482
45‑412................... Working out amount of instalment—payers of 2 quarterly instalments 484
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 487
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....... 488
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............. 490
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.................... 492
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 494
45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax 494
45‑530................... How Commissioner works out benchmark instalment rate 495
45‑535................... Working out your benchmark tax................................... 495
Subdivision 45‑P—Anti‑avoidance rules 496
45‑595................... Object of this Subdivision.............................................. 496
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?................ 499
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 546
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 Ser