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)Â Â Â Â Â 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 12AÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 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 15Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 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 16Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 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 21Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 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 45Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 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 70Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 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 95Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 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
1Â Short title
                  This Act may be cited as the Taxation Administration Act 1953.
2Â 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:Â Â Â Â Â Â Â Â Â 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.
2AÂ Application of the Criminal Code
                  Chapter 2 of the Criminal Code applies to all offences against this Act.
Note:Â Â Â Â Â Â Â Â Â Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
2BÂ 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.
3Â Application
                  This Act extends to every external Territory referred to in the definition of Australia.
3AAÂ 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
3AÂ General administration of Act
                  The Commissioner has the general administration of this Act.
Note:Â Â Â Â Â Â Â Â Â 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.
3BÂ 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.
3CÂ 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.
3CAÂ 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:Â Â Â Â Â Â Â Â Â 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.
3EÂ 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.
3FÂ 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.
3GÂ 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
4Â 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.
4AÂ 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.
5Â 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.
5AÂ Remuneration and allowances of Commissioner and Second Commissioners<