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Taxation Administration Act 1953

Authoritative Version
Act No. 1 of 1953 as amended, taking into account amendments up to Treasury Laws Amendment (COVID-19 Economic Response No. 2) Act 2021
An Act to provide for the administration of certain Acts relating to Taxation, and for other purposes
Administered by: Treasury
General Comments: Section 355-25 of Schedule 1 of this Act has been modified by the operation of the Commissioner’s Remedial Power, click here to see the modification.

Paragraph 12-319A(b)(ii) of Schedule 1 of this Act has been modified by the operation of the Commissioner’s Remedial Power, click here to see the modification.
Registered 06 Sep 2021
Start Date 11 Aug 2021
Table of contents.

Commonwealth Coat of Arms of Australia

Taxation Administration Act 1953

No. 1, 1953

Compilation No. 182

Compilation date:                              11 August 2021

Includes amendments up to:            Act No. 79, 2021

Registered:                                         6 September 2021

This compilation is in 3 volumes

Volume 1:       sections 1–18

                        Schedule 1 (sections 6‑1 to 97‑35)

Volume 2:       Schedule 1 (sections 105‑1 to 990‑5)

Volume 3:       Endnotes

Each volume has its own contents

About this compilation

This compilation

This is a compilation of the Taxation Administration Act 1953 that shows the text of the law as amended and in force on 11 August 2021 (the compilation date).

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

Uncommenced amendments

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

Application, saving and transitional provisions for provisions and amendments

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

Editorial changes

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

Modifications

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

Self‑repealing provisions

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

  

  

  


Contents

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

Chapter 3—Collection, recovery and administration of other taxes      1

Part 3‑10—Indirect taxes                                                                                           1

Division 105—General rules for indirect taxes                                                  1

Guide to Division 105                                                                                                1

105‑1..................... What this Division is about................................................. 1

Subdivision 105‑D—General interest charge and penalties                            2

105‑80................... General interest charge........................................................ 2

105‑85................... Amending Acts cannot impose penalties or general interest charge earlier than 28 days after Royal Assent............................................................................................ 3

Subdivision 105‑F—Indirect tax refund schemes                                              3

105‑120................. Refund scheme—defence related international obligations. 3

105‑125................. Refund scheme—international obligations.......................... 4

Subdivision 105‑G—Other administrative provisions                                     5

105‑145................. Commissioner must give things in writing......................... 5

Division 110—Goods and services tax                                                                  6

Guide to Division 110                                                                                                6

110‑1..................... What this Division is about................................................. 6

Subdivision 110‑F—Review of GST decisions                                                    6

110‑50................... Reviewable GST decisions................................................. 6

Division 111—Wine tax and luxury car tax                                                      11

Guide to Division 111                                                                                              11

111‑1..................... What this Division is about............................................... 11

Subdivision 111‑C—Review of wine tax decisions                                           11

111‑50................... Reviewable wine tax decisions......................................... 11

Subdivision 111‑D—Effect on contracts from amendments to laws           12

111‑60................... Alteration of contracts if cost of complying with agreement is affected by later alteration to wine tax or luxury car tax laws....................................................................... 12

Division 112—Fuel tax                                                                                           14

Guide to Division 112                                                                                              14

112‑1..................... What this Division is about............................................... 14

Subdivision 112‑E—Review of fuel tax decisions                                            14

112‑50................... Reviewable fuel tax decisions........................................... 14

Part 3‑15—Major bank levy                                                                                  16

Division 115General provisions relating to the major bank levy           16

115‑1..................... What this Division is about............................................... 16

115‑5..................... Returns............................................................................. 16

115‑10................... When major bank levy is due and payable........................ 17

Division 117—Anti‑avoidance                                                                              18

Guide to Division 117                                                                                              18

117‑1..................... What this Division is about............................................... 18

Subdivision 117‑A—Application of this Division                                             18

117‑5..................... Object of this Division...................................................... 18

117‑10................... Application of this Division.............................................. 19

117‑15................... Meaning of MBL benefit................................................... 19

117‑20................... Matters to be considered in determining purpose.............. 20

Subdivision 117‑B—Commissioner may negate effects of schemes for MBL benefits                20

117‑25................... Commissioner may negate entity’s MBL benefits............ 21

117‑30................... Determination has effect according to its terms................. 21

117‑35................... Commissioner may disregard scheme in making determinations             21

117‑40................... One determination may cover several quarters etc............ 22

117‑45................... Commissioner must give copy of determination to entity affected           22

117‑50................... Objections......................................................................... 22

Part 3‑20—Superannuation                                                                                    23

Division 131—Releasing money from superannuation                                  23

Subdivision 131‑A—Releasing money from superannuation                       23

Guide to Subdivision 131‑A                                                                                   23

131‑1..................... What this Subdivision is about......................................... 23

Requesting a release authority                                                                              24

131‑5..................... Requesting the release of amounts from superannuation interests            24

131‑10................... Restrictions on the total amount you can request to be released               26

Issuing a release authority to superannuation provider                                27

131‑15................... Issuing release authorities................................................. 27

131‑20................... Amount to be stated in a release authority......................... 28

131‑25................... Contents of a release authority.......................................... 29

131‑30................... Varying and revoking a release authority.......................... 29

Complying with a release authority                                                                    29

131‑35................... Obligations of superannuation providers.......................... 29

131‑40................... Voluntary compliance with a release authority relating to defined benefit interests  30

131‑45................... Meaning of maximum available release amount................ 30

131‑50................... Notifying Commissioner.................................................. 31

131‑55................... Notifying you................................................................... 31

131‑60................... Compensation for acquisition of property......................... 32

Consequences of releasing amounts                                                                    32

131‑65................... Entitlement to credits......................................................... 32

131‑70................... Interest for late payments of money received by the Commissioner in accordance with release authority.......................................................................................... 33

131‑75................... Income tax treatment of amounts released—proportioning rule does not apply       33

Division 133—Division 293 tax                                                                            34

Guide to Division 133                                                                                              34

133‑1..................... What this Division is about............................................... 34

Subdivision 133‑A—Deferral determination                                                    34

Guide to Subdivision 133‑A                                                                                   34

133‑5..................... What this Subdivision is about......................................... 34

Operative provisions                                                                                               35

133‑10................... Determination of tax that is deferred to a debt account..... 35

133‑15................... Defined benefit tax............................................................ 36

133‑20................... How to attribute the defined benefit tax to defined benefit interests         37

133‑25................... Determination reducing tax deferred to a debt account...... 37

133‑30................... General provisions applying to determinations under this Subdivision    37

Subdivision 133‑B—Debt account                                                                        38

Guide to Subdivision 133‑B                                                                                   38

133‑55................... What this Subdivision is about......................................... 38

Operative provisions                                                                                               39

133‑60................... Debt account to be kept for deferred tax........................... 39

133‑65................... Interest on debt account balance........................................ 39

133‑70................... Voluntary payments.......................................................... 40

133‑75................... Commissioner must notify superannuation provider of debt account       41

Subdivision 133‑C—Compulsory payment                                                       41

Guide to Subdivision 133‑C                                                                                   41

133‑100................. What this Subdivision is about......................................... 41

Debt account discharge liability                                                                           42

133‑105................. Liability to pay debt account discharge liability................. 42

133‑110................. When debt account discharge liability must be paid.......... 42

133‑115................. General interest charge...................................................... 42

133‑120................. Meaning of debt account discharge liability..................... 43

133‑125................. Notice of debt account discharge liability.......................... 44

End benefit                                                                                                                 44

133‑130................. Meaning of end benefit..................................................... 44

133‑135................. Superannuation provider may request debt account status 45

133‑140................. End benefit notice—superannuation provider................... 46

133‑145................. End benefit notice—material changes or omissions.......... 47

Division 135—Releasing money from superannuation                                  48

Guide to Division 135                                                                                              48

135‑1..................... What this Division is about............................................... 48

Subdivision 135‑A—When the Commissioner must issue a release authority                48

Guide to Subdivision 135‑A                                                                                   48

135‑5..................... What this Subdivision is about......................................... 48

Operative provisions                                                                                               49

135‑10................... Release authorities............................................................ 49

Subdivision 135‑B—When a release authority can be given to a superannuation provider       50

Guide to Subdivision 135‑B                                                                                   50

135‑35................... What this Subdivision is about......................................... 50

Operative provisions                                                                                               51

135‑40................... When you may give release authority to superannuation provider           51

Subdivision 135‑C—Release of superannuation money under a release authority       51

Guide to Subdivision 135‑C                                                                                   51

135‑70................... What this Subdivision is about......................................... 51

Operative provisions                                                                                               52

135‑75................... Requirement for superannuation provider to release money 52

135‑80................... Compensation for acquisition of property......................... 53

135‑85................... Release amount................................................................. 53

135‑90................... How the Commissioner applies amounts received under a release authority            54

135‑95................... Defined benefit interests—releasing amounts to pay debt account discharge liability              54

135‑100................. Income tax treatment of amounts released—proportioning rule does not apply       54

Division 136—Transfer balance cap                                                                  55

Guide to Division 136                                                                                              55

136‑1..................... What this Division is about............................................... 55

Subdivision 136‑A—Excess transfer balance determinations                      55

Guide to Subdivision 136‑A                                                                                   55

136‑5..................... What this Subdivision is about......................................... 55

Operative provisions                                                                                               56

136‑10................... Excess transfer balance determination............................... 56

136‑15................... Review.............................................................................. 57

136‑20................... Electing to commute a different superannuation income stream               57

136‑25................... Notifying Commissioner of transfer balance debits.......... 58

Subdivision 136‑B—Commutation authorities                                                 59

Guide to Subdivision 136‑B                                                                                   59

136‑50................... What this Subdivision is about......................................... 59

Obligations of Commissioner                                                                               60

136‑55................... Issuing of commutation authorities................................... 60

136‑60................... Varying and revoking a commutation authority................ 61

136‑65................... Issuing further commutation authorities............................ 61

136‑70................... Notifying of non‑commutable excess transfer balance...... 62

Obligations of superannuation income stream providers                             63

136‑80................... Obligations on superannuation income stream providers.. 63

136‑85................... Notifying the Commissioner............................................. 64

136‑90................... Notifying you................................................................... 64

Division 138—First home super saver scheme                                                 65

Guide to Division 138                                                                                              65

138‑1..................... What this Division is about............................................... 65

Subdivision 138‑A—First home super saver determination                         65

Guide to Subdivision 138‑A                                                                                   65

138‑5..................... What this Subdivision is about......................................... 65

Operative provisions                                                                                               66

138‑10................... First home super saver determination............................... 66

138‑15................... Review.............................................................................. 67

Subdivision 138‑B—FHSS maximum release amount                                   67

Guide to Subdivision 138‑B                                                                                   67

138‑20................... What this Subdivision is about......................................... 67

Operative provisions                                                                                               68

138‑25................... FHSS maximum release amount....................................... 68

138‑30................... FHSS releasable contributions amount............................. 68

138‑35................... Eligible contributions........................................................ 69

138‑40................... Associated earnings.......................................................... 71

Part 3‑30—Diverted profits tax                                                                            72

Division 145—Assessments of diverted profits tax                                          72

Guide to Division 145                                                                                              72

145‑1..................... What this Division is about............................................... 72

145‑5..................... DPT assessments—modified application of Division 155 72

145‑10................... When DPT assessments can be made............................... 73

145‑15................... Period of review of DPT assessments.............................. 73

145‑20................... Review of assessments..................................................... 74

145‑25................... Restricted DPT evidence................................................... 75

Chapter 4—Generic assessment, collection and recovery rules               78

Part 4‑1—Returns and assessments                                                                    78

Division 155—Assessments                                                                                    78

Guide to Division 155                                                                                              78

155‑1..................... What this Division is about............................................... 78

Subdivision 155‑A—Making assessments                                                          78

155‑5..................... Commissioner may make assessment............................... 79

155‑10................... Commissioner must give notice of assessment................. 80

155‑15................... Self‑assessment................................................................ 80

155‑20................... Assessment of indirect tax on importations and customs dealing             82

155‑25................... Special assessment............................................................ 83

155‑30................... Delays in making assessments.......................................... 83

Subdivision 155‑B—Amending assessments                                                      84

When Commissioner may amend assessments                                                 84

155‑35................... Amendment during period of review................................ 84

155‑40................... Amendment during period of review—certain applications taken to be notices       86

155‑45................... Amendment on application............................................... 87

155‑50................... Amendment to give effect to private ruling....................... 87

155‑55................... Amendment to give effect to certain anti‑avoidance declarations              87

155‑60................... Amendment because of review, objection or fraud........... 88

Special rules about amending amended assessments                                      88

155‑65................... Amending amended assessments...................................... 88

155‑70................... Refreshed period of review............................................... 88

General rules                                                                                                             89

155‑75................... Refunds of amounts overpaid........................................... 89

155‑80................... Amended assessments are assessments............................ 89

Subdivision 155‑C—Validity and review of assessments                               90

155‑85................... Validity of assessment...................................................... 90

155‑90................... Review of assessments..................................................... 90

Subdivision 155‑D—Miscellaneous                                                                     90

155‑95................... Entities.............................................................................. 90

Part 4‑15—Collection and recovery of tax‑related liabilities and other amounts           92

Division 250—Introduction                                                                                   92

Subdivision 250‑A—Guide to Part 4‑15                                                             92

250‑1..................... What this Part is about...................................................... 92

250‑5..................... Some important concepts about tax‑related liabilities........ 92

250‑10................... Summary of tax‑related liabilities...................................... 93

Subdivision 250‑B—Object of this Part                                                            102

250‑25................... Object............................................................................. 102

Division 255—General rules about collection and recovery                      103

Subdivision 255‑A—Tax‑related liabilities                                                     103

255‑1..................... Meaning of tax‑related liability....................................... 103

255‑5..................... Recovering a tax‑related liability that is due and payable 103

Subdivision 255‑B—Commissioner’s power to vary payment time          104

255‑10................... To defer the payment time............................................... 104

255‑15................... To permit payments by instalments................................. 105

255‑20................... To bring forward the payment time in certain cases........ 105

Subdivision 255‑C—Service of documents if person absent from Australia or cannot be found              106

Guide to Subdivision 255‑C                                                                                 106

255‑35................... What this Subdivision is about....................................... 106

Operative provisions                                                                                             106

255‑40................... Service of documents if person absent from Australia or cannot be found              106

Subdivision 255‑D—Security deposits                                                              107

255‑100................. Commissioner may require security deposit................... 107

255‑105................. Notice of requirement to give security............................ 108

255‑110................. Offence........................................................................... 109

255‑115................. Order to comply with requirement.................................. 109

255‑120................. Offence........................................................................... 110

Division 260—Special rules about collection and recovery                        111

Guide to Division 260                                                                                            111

260‑1..................... What this Division is about............................................. 111

Subdivision 260‑A—From third party                                                              111

260‑5..................... Commissioner may collect amounts from third party...... 112

260‑10................... Notice to Commonwealth, State or Territory.................. 113

260‑15................... Indemnity........................................................................ 114

260‑20................... Offence........................................................................... 114

Subdivision 260‑B—From liquidator                                                               114

260‑40................... Subdivision does not apply to superannuation guarantee charge              115

260‑45................... Liquidator’s obligation.................................................... 115

260‑50................... Offence........................................................................... 116

260‑55................... Joint liability of 2 or more liquidators............................. 116

260‑60................... Liquidator’s other obligation or liability.......................... 117

Subdivision 260‑C—From receiver                                                                   117

260‑75................... Receiver’s obligation...................................................... 117

260‑80................... Offence........................................................................... 118

260‑85................... Joint liability of 2 or more receivers................................ 119

260‑90................... Receiver’s other obligation or liability............................ 119

Subdivision 260‑D—From agent winding up business for foreign resident principal  119

260‑105................. Obligation of agent winding up business for foreign resident principal   119

260‑110................. Offence........................................................................... 120

260‑115................. Joint liability of 2 or more agents.................................... 120

260‑120................. Agent’s other obligation or liability................................ 121

Subdivision 260‑E—From deceased person’s estate                                     121

260‑140................. Administered estate......................................................... 121

260‑145................. Unadministered estate..................................................... 122

260‑150................. Commissioner may authorise amount to be recovered.... 123

Division 263—Mutual assistance in the administration of foreign tax laws 124

Subdivision 263‑A—Foreign revenue claims                                                  124

Guide to Subdivision 263‑A                                                                                 124

263‑5..................... What this Subdivision is about....................................... 124

Operative provisions                                                                                             125

263‑10................... Meaning of foreign revenue claim.................................. 125

263‑15................... Requirements for foreign revenue claims........................ 125

263‑20................... Foreign Revenue Claims Register................................... 126

263‑25................... Registering claims........................................................... 126

263‑30................... When amount is due and payable.................................... 126

263‑35................... Amending the Register etc.............................................. 127

263‑40................... Payment to competent authority...................................... 128

Subdivision 263‑B—Service of documents in Australia on behalf of foreign revenue authorities           129

Guide to Subdivision 263‑B                                                                                 129

263‑55................... What this Subdivision is about....................................... 129

Operative provisions                                                                                             129

263‑60................... Meaning of foreign service of document request............ 129

263‑65................... Service of document subject to foreign service of document request       130

Division 265—Other matters                                                                              131

Subdivision 265‑A—Right of person to seek recovery or contribution    131

Guide to Subdivision 265‑A                                                                                 131

265‑35................... What this Subdivision is about....................................... 131

Operative provisions                                                                                             131

265‑40................... Right of recovery if another person is liable................... 131

265‑45................... Right of contribution if persons are jointly liable............ 132

Subdivision 265‑B—Application of laws                                                          132

265‑65................... Non‑application of certain taxation laws......................... 132

Subdivision 265‑C—Direction to pay superannuation guarantee charge 133

Guide to Subdivision 265‑C                                                                                 133

265‑85................... What this Subdivision is about....................................... 133

265‑90................... Direction to pay superannuation guarantee charge.......... 133

265‑95................... Offence........................................................................... 135

265‑100................. Variation or revocation................................................... 135

265‑105................. Effect of liability being reduced or ceasing to exist......... 136

265‑110................. Taxation objection........................................................... 137

265‑115................. Extension of period to comply if taxation objection made 137

Division 268—Estimates                                                                                      139

Guide to Division 268                                                                                            139

268‑1..................... What this Division is about............................................. 139

Subdivision 268‑A—Object                                                                                  140

268‑5..................... Object of Division.......................................................... 140

Subdivision 268‑B—Making estimates                                                             140

268‑10................... Commissioner may make estimate.................................. 140

268‑15................... Notice of estimate........................................................... 142

Subdivision 268‑C—Liability to pay estimates                                              143

268‑20................... Nature of liability to pay estimate.................................... 143

268‑25................... Accuracy of estimate irrelevant to liability to pay............ 144

268‑30................... Estimate provable in bankruptcy or winding up.............. 145

Subdivision 268‑D—Reducing and revoking estimates                                146

268‑35................... How estimate may be reduced or revoked—Commissioner’s powers     146

268‑40................... How estimate may be reduced or revoked—statutory declaration or affidavit          148

268‑45................... How estimate may be reduced or revoked—rejection of proof of debt    150

268‑50................... How estimate may be reduced—amount paid or applied 152

268‑55................... When reduction or revocation takes effect...................... 152

268‑60................... Consequences of reduction or revocation—refund......... 153

268‑65................... Consequences of reduction or revocation—statutory demand changed or set aside 153

268‑70................... Consequences of reduction or revocation—underlying liability               154

Subdivision 268‑E—Late payment of estimates                                             154

268‑75................... Liability to pay the general interest charge...................... 154

268‑80................... Effect of paying the general interest charge..................... 155

Subdivision 268‑F—Miscellaneous                                                                    156

268‑85................... Effect of judgment on liability on which it is based........ 156

268‑90................... Requirements for statutory declaration or affidavit......... 157

268‑95................... Liquidators, receivers and trustees in bankruptcy........... 160

268‑100................. Division not to limit or exclude Corporations or Bankruptcy Act            162

Division 269—Penalties for directors of non‑complying companies       163

Guide to Division 269                                                                                            163

269‑1..................... What this Division is about............................................. 163

Subdivision 269‑A—Object and scope                                                              164

269‑5..................... Object of Division.......................................................... 164

269‑10................... Scope of Division........................................................... 164

Subdivision 269‑B—Obligations and penalties                                              167

269‑15................... Directors’ obligations..................................................... 167

269‑20................... Penalty............................................................................ 168

269‑25................... Notice............................................................................. 169

269‑30................... Effect on penalty of directors’ obligation ending before end of notice period          170

269‑35................... Defences......................................................................... 176

Subdivision 269‑C—Discharging liabilities                                                    178

269‑40................... Effect of director paying penalty or company discharging liability           178

269‑45................... Directors’ rights of indemnity and contribution.............. 179

Subdivision 269‑D—Miscellaneous                                                                   179

269‑50................... How notice may be given............................................... 180

269‑52................... Copies of notices............................................................ 180

269‑55................... Division not to limit or exclude Corporations Act.......... 180

Part 4‑25—Charges and penalties                                                                     181

Division 280—Shortfall interest charge                                                           181

Guide to Division 280                                                                                            181

280‑1..................... Guide to Division 280.................................................... 181

Subdivision 280‑A—Object of Division                                                            181

280‑50................... Object of Division.......................................................... 181

Subdivision 280‑B—Shortfall interest charge                                                182

280‑100................. Liability to shortfall interest charge—income tax............ 182

280‑101................. Liability to shortfall interest charge—excess exploration credit tax          183

280‑102................. Liability to shortfall interest charge—petroleum resource rent tax            184

280‑102A.............. Liability to shortfall interest charge—excess non‑concessional contributions tax    185

280‑102B.............. Liability to shortfall interest charge—Division 293 tax... 186

280‑102C.............. Liability to shortfall interest charge—diverted profits tax 187

280‑103................. Liability to shortfall interest charge—general.................. 189

280‑105................. Amount of shortfall interest charge................................. 189

280‑110................. Notification by Commissioner........................................ 189

Subdivision 280‑C—Remitting shortfall interest charge                             190

280‑160................. Remitting shortfall interest charge................................... 190

280‑165................. Commissioner must give reasons for not remitting in certain cases         190

280‑170................. Objecting against remission decision.............................. 191

Division 284—Administrative penalties for statements, unarguable positions and schemes      192

Guide to Division 284                                                                                            192

284‑5..................... What this Division is about............................................. 192

Subdivision 284‑A—General provisions                                                          192

284‑10................... Object of Division.......................................................... 193

284‑15................... When a matter is reasonably arguable........................... 193

284‑20................... Which statements this Division applies to....................... 194

284‑25................... Statements by agents....................................................... 194

284‑30................... Application of Division to trusts..................................... 194

284‑35................... Application of Division to partnerships.......................... 194

Subdivision 284‑B—Penalties relating to statements                                    195

Guide to Subdivision 284‑B                                                                                 195

284‑70................... What this Subdivision is about....................................... 195

Operative provisions                                                                                             196

284‑75................... Liability to penalty.......................................................... 196

284‑80................... Shortfall amounts........................................................... 199

284‑85................... Amount of penalty.......................................................... 201

284‑90................... Base penalty amount....................................................... 202

284‑95................... Joint and several liability of directors of corporate trustee that makes a false or misleading statement     206

Subdivision 284‑C—Penalties relating to schemes                                        207

Guide to Subdivision 284‑C                                                                                 207

284‑140................. What this Subdivision is about....................................... 207

Operative provisions                                                                                             207

284‑145................. Liability to penalty.......................................................... 207

284‑150................. Scheme benefits and scheme shortfall amounts.............. 209

284‑155................. Amount of penalty.......................................................... 211

284‑160................. Base penalty amount: schemes....................................... 212

284‑165................. Exception—threshold for penalty arising from cross‑border transfer pricing          213

Subdivision 284‑D—Provisions common to Subdivisions 284‑B and 284‑C 214

284‑220................. Increase in base penalty amount...................................... 215

284‑224................. Reduction of base penalty amount if law was applied in an accepted way               216

284‑225................. Reduction of base penalty amount if you voluntarily tell the Commissioner            216

Subdivision 284‑E—Special rules about unarguable positions for cross‑border transfer pricing           218

284‑250................. Undocumented transfer pricing treatment not reasonably arguable          218

284‑255................. Documentation requirements.......................................... 218

Division 286—Penalties for failing to lodge documents on time               220

Subdivision 286‑A—Guide to Division 286                                                     220

286‑1..................... What this Division is about............................................. 220

Subdivision 286‑B—Object of Division                                                            220

286‑25................... Object of Division.......................................................... 220

Subdivision 286‑C—Penalties for failing to lodge documents on time    221

286‑75................... Liability to penalty.......................................................... 221

286‑80................... Amount of penalty.......................................................... 223

Division 288—Miscellaneous administrative penalties                                227

288‑10................... Penalty for non‑electronic notification............................ 227

288‑20................... Penalty for non‑electronic payment................................. 228

288‑25................... Penalty for failure to keep or retain records.................... 228

288‑30................... Penalty for failure to retain or produce declarations........ 229

288‑35................... Penalty for preventing access etc.................................... 229

288‑40................... Penalty for failing to register or cancel registration......... 230

288‑45................... Penalty for failing to issue tax invoice etc....................... 230

288‑46................... Penalty for failing to ensure tax information about supplies of low value goods is included in customs documents....................................................................... 230

288‑50................... Penalty for both principal and agent issuing certain documents               231

288‑70................... Administrative penalties for life insurance companies.... 231

288‑75................... Administrative penalty for a copyright or resale royalty collecting society               233

288‑80................... Administrative penalty for over declaring conduit foreign income           233

288‑85................... Failure by Reporting Financial Institution to obtain self‑certification       234

288‑95................... Failing to comply etc. with release authority................... 235

288‑100................. Excess money paid under release authority..................... 236

288‑105................. Superannuation provider to calculate crystallised pre‑July 83 amount of superannuation interest by 30 June 2008................................................................................ 236

288‑110................. Contravention of superannuation data and payment regulation or standard              237

288‑115................. AMIT under or over resulting from intentional disregard of or recklessness as to taxation law              238

288‑120................. Prohibited offsets of liabilities using interest etc. accrued on farm management deposits        240

288‑125................. Producing or supplying electronic sales suppression tools 241

288‑130................. Possessing electronic sales suppression tools................. 241

288‑135................. Incorrectly keeping records using electronic sales suppression tools       242

Division 290—Promotion and implementation of schemes                        243

Subdivision 290‑A—Preliminary                                                                       243

290‑5..................... Objects of this Division.................................................. 243

290‑10................... Extra‑territorial application.............................................. 243

Subdivision 290‑B—Civil penalties                                                                   243

290‑50................... Civil penalties................................................................. 244

290‑55................... Exceptions...................................................................... 246

290‑60................... Meaning of promoter..................................................... 248

290‑65................... Meaning of tax exploitation scheme................................ 248

Subdivision 290‑C—Injunctions                                                                         249

290‑120................. Conduct to which this Subdivision applies..................... 250

290‑125................. Injunctions...................................................................... 250

290‑130................. Interim injunctions.......................................................... 250

290‑135................. Delay in making ruling................................................... 250

290‑140................. Discharge etc. of injunctions........................................... 251

290‑145................. Certain limits on granting injunctions not to apply.......... 251

290‑150................. Other powers of the Federal Court unaffected................ 252

Subdivision 290‑D—Voluntary undertakings                                                 252

290‑200................. Voluntary undertakings.................................................. 252

Division 295—Miscellaneous civil penalties                                                   253

Subdivision 295‑B—Civil penalty for possession of tobacco without relevant documentation 253

Guide to Subdivision 295‑B                                                                                 253

295‑70................... What this Subdivision is about....................................... 253

295‑75................... Possession of tobacco without relevant documentation etc. 254

295‑80................... Things treated as tobacco................................................ 256

Division 298—Machinery provisions for penalties                                       257

Subdivision 298‑A—Administrative penalties                                                257

298‑5..................... Scope of Subdivision...................................................... 257

298‑10................... Notification of liability.................................................... 257

298‑15................... Due date for penalty........................................................ 258

298‑20................... Remission of penalty...................................................... 258

298‑25................... General interest charge on unpaid penalty....................... 258

298‑30................... Assessment of penalties under Division 284 or section 288‑115             259

Subdivision 298‑B—Civil penalties                                                                   259

298‑80................... Application of Subdivision............................................. 259

298‑85................... Civil evidence and procedure rules for civil penalty orders 260

298‑90................... Civil proceedings after criminal proceedings.................. 260

298‑95................... Criminal proceedings during civil proceedings............... 260

298‑100................. Criminal proceedings after civil proceedings.................. 260

298‑105................. Evidence given in proceedings for penalty not admissible in criminal proceedings  261

298‑110................. Civil double jeopardy...................................................... 261

Part 4‑30—Offences and prosecutions                                                            262

Division 308—Offences relating to tobacco                                                    262

Guide to Division 308                                                                                            262

308‑1..................... What this Division is about............................................. 262

Subdivision 308‑A—Reasonable suspicion offences relating to tobacco 262

Guide to Subdivision 308‑A                                                                                 262

308‑5..................... What this Subdivision is about....................................... 262

308‑10................... Possession of tobacco (500 kilograms or above)—reasonable suspicion offence    263

308‑15................... Possession of tobacco (100 kilograms or above)—reasonable suspicion offence    266

308‑20................... Possession of tobacco (5 kg or above)—reasonable suspicion offence   269

308‑25................... Sale of tobacco (500 kilograms or above)—reasonable suspicion offence               271

308‑30................... Sale of tobacco (100 kilograms or above)—reasonable suspicion offence               274

308‑35................... Sale of tobacco (5 kg or above)—reasonable suspicion offence              276

308‑40................... Buying of tobacco (500 kilograms or above)—reasonable suspicion offence          279

308‑45................... Buying of tobacco (100 kilograms or above)—reasonable suspicion offence          282

308‑50................... Buying of tobacco (5 kg or above)—reasonable suspicion offence         284

308‑55................... Matters taken to satisfy “reasonable to suspect” requirement 287

Subdivision 308‑B—Fault‑based offences of possession, production and manufacture              289

Guide to Subdivision 308‑B                                                                                 289

308‑105................. What this Subdivision is about....................................... 289

308‑110................. Possession of tobacco (500 kg or above)—fault‑based offence               290

308‑115................. Possession of tobacco (100 kg or above)—fault‑based offence               292

308‑120................. Possession of tobacco (5 kg or above)—fault‑based offence.. 295

308‑125................. Manufacture or production of tobacco (500 kg or above)—fault‑based offence      297

308‑130................. Manufacture or production of tobacco (100 kg or above)—fault‑based offence      299

308‑135................. Manufacture or production of tobacco (5 kg or above)—fault‑based offence          301

Subdivision 308‑C—Offences relating to equipment relating to the manufacture or production of tobacco        304

Guide to Subdivision 308‑C                                                                                 304

308‑200................. What this Subdivision is about....................................... 304

308‑205................. Possession of equipment for use in illegal manufacture or production of tobacco   304

308‑210................. Possession of equipment designed or adapted to manufacture or produce tobacco  305

Subdivision 308‑E—Other provisions                                                              306

Guide to Subdivision 308‑E                                                                                 306

308‑500................. What this Subdivision is about....................................... 306

308‑505................. Things treated as tobacco................................................ 307

308‑510................. Matters treated as possession.......................................... 307

308‑515................. Where excise duty or customs duty is treated as not payable for the purpose of the reasonable suspicion offences.......................................................................... 307

308‑520................. Section 8ZD does not apply to this Division.................. 308

Part 4‑50—Release from particular liabilities                                            309

Division 340Commissioner’s power in cases of hardship                        309

Guide to Division 340                                                                                            309

340‑1..................... What this Division is about............................................. 309

Operative provisions                                                                                             309

340‑5..................... Release from particular liabilities in cases of serious hardship 309

340‑10................... Liabilities to which this section applies........................... 311

340‑15................... Commissioner may take action to give effect to a release decision           312

340‑20................... Extinguishing your liability to pay a fringe benefits tax instalment if you are released             313

340‑25................... Extinguishing your liability to pay a PAYG instalment if you are released              313

Division 342Commissioner’s power relating to proceeds of crime proceedings       315

Guide to Division 342                                                                                            315

342‑1..................... What this Division is about............................................. 315

Subdivision 342‑A—Power to waive right to payment of tax‑related liabilities            315

342‑5..................... Object of this Subdivision.............................................. 315

342‑10................... Power to waive right to payment of tax‑related liability.. 316

Part 4‑90—Evidence                                                                                                 318

Division 350—Evidence                                                                                       318

Guide to Division 350                                                                                            318

350‑1..................... What this Division is about............................................. 318

Subdivision 350‑A—Evidence                                                                             318

350‑5..................... Application of Subdivision............................................. 318

350‑10................... Evidence......................................................................... 319

350‑12................... Prima facie evidence—particulars stated in evidentiary certificate            321

350‑15................... Judicial notice of signature.............................................. 322

350‑20................... Certain statements or averments in proceedings to recover tax‑related liabilities      322

350‑25................... Evidence by affidavit in proceedings to recover tax‑related liabilities       323

Chapter 5—Administration                                                                                         324

Part 5‑1—The Australian Taxation Office                                                   324

Division 352—Commissioner’s reporting obligations                                 324

Guide to Division 352                                                                                            324

352‑1..................... What this Division is about............................................. 324

Subdivision 352‑A—Accountability of the Commissioner in respect of indirect tax laws           324

352‑5..................... Commissioner must prepare annual report on indirect tax laws               324

Subdivision 352‑C—Reporting on working holiday makers                      325

352‑25................... Commissioner must prepare annual report on working holiday makers   325

Division 353—Powers to obtain information and evidence                        326

Guide to Division 353                                                                                            326

353‑1..................... What this Division is about............................................. 326

Subdivision 353‑A—Powers to obtain information and evidence             326

353‑10................... Commissioner’s power................................................... 326

353‑15................... Access to premises, documents etc................................. 327

353‑20................... Checking status of specifically listed deductible gift recipients                328

Subdivision 353‑B—Powers to obtain information and evidence from overseas          330

353‑25................... Offshore information notices.......................................... 330

353‑30................... Offshore information notices—consequence of not complying               332

Division 354—Power to obtain information about rights or interests in property       334

354‑5..................... Power to obtain information about rights or interests in property            334

Division 355—Confidentiality of taxpayer information                             336

Guide to Division 355                                                                                            336

355‑1..................... What this Division is about............................................. 336

Subdivision 355‑A—Objects and application of Division                            337

355‑10................... Objects of Division......................................................... 337

355‑15................... Application of Division.................................................. 337

Subdivision 355‑B—Disclosure of protected information by taxation officers             338

Guide to Subdivision 355‑B                                                                                 338

355‑20................... What this Subdivision is about....................................... 338

Operative provisions                                                                                             338

355‑25................... Offence—disclosure of protected information by taxation officers          338

355‑30................... Meaning of protected information and taxation officer... 340

355‑35................... Consent is not a defence................................................. 340

355‑40................... Generality of Subdivision not limited............................. 340

355‑45................... Exception—disclosure of publicly available information 341

355‑47................... Exception—disclosure of periodic aggregate tax information  341

355‑50................... Exception—disclosure in performing duties................... 341

355‑55................... Exception—disclosure to Ministers................................ 344

355‑60................... Limits on disclosure to Ministers.................................... 346

355‑65................... Exception—disclosure for other government purposes.. 347

355‑70................... Exception—disclosure for law enforcement and related purposes           364

355‑72................... Exception—disclosure to credit reporting bureaus.......... 370

355‑75................... Limits on disclosure to courts and tribunals.................... 373

Subdivision 355‑C—On‑disclosure of protected information by other people               373

Guide to Subdivision 355‑C                                                                                 373

355‑150................. What this Subdivision is about....................................... 373

Operative provisions                                                                                             374

355‑155................. Offence—on‑disclosure of protected information by other people           374

355‑160................. Consent is not a defence................................................. 375

355‑165................. Generality of Subdivision not limited............................. 375

355‑170................. Exception—on‑disclosure of publicly available information 375

355‑172................. Exception—disclosure of periodic aggregate tax information  375

355‑175................. Exception—on‑disclosure for original purpose.............. 375

355‑180................. Exception—on‑disclosure to Ministers in relation to statutory powers or functions                377

355‑182................. Exception—on‑disclosure of certain information to Commonwealth Ombudsman  377

355‑185................. Exception—on‑disclosure in relation to IGIS................. 378

355‑190................. Exception—on‑disclosure in relation to ASIO............... 379

355‑195................. Exception—on‑disclosure by Royal Commissions......... 380

355‑200................. Exception—records made in compliance with Australian laws                381

355‑205................. Limits on on‑disclosure to courts or tribunals................. 381

355‑210................. Limits on on‑disclosure to Ministers.............................. 381

355‑215................. Exception—on‑disclosure of information disclosed to credit reporting bureaus      382

Subdivision 355‑D—Disclosure of protected information that has been unlawfully acquired   382

Guide to Subdivision 355‑D                                                                                 382

355‑260................. What this Subdivision is about....................................... 382

Operative provisions                                                                                             383

355‑265................. Offence—disclosure of protected information acquired in breach of a taxation law 383

355‑270................. Exception—disclosure of publicly available information 383

355‑275................. Exception—disclosure in relation to a taxation law......... 384

355‑280................. Limits on disclosure to courts and tribunals.................... 384

Subdivision 355‑E—Other matters                                                                    384

Guide to Subdivision 355‑E                                                                                 384

355‑320................. What this Subdivision is about....................................... 384

Operative provisions                                                                                             385

355‑325................. Oath or affirmation to protect information...................... 385

355‑330................. Injunctions to prevent contravention of non‑disclosure provisions          385

355‑335................. Procedures for disclosing protected information............. 387

Division 356—General administration of tax laws                                       389

Guide to Division 356                                                                                            389

356‑1..................... What this Division is about............................................. 389

Subdivision 356‑A—Indirect tax laws                                                               389

356‑5..................... Commissioner has general administration of indirect tax laws 389

Subdivision 356‑B—Major bank levy                                                               389

356‑10................... Commissioner has general administration of major bank levy 389

Part 5‑5—Rulings                                                                                                       390

Division 357—Object and common rules                                                         390

Guide to Division 357                                                                                            390

357‑1..................... What this Division is about............................................. 390

Subdivision 357‑A—Object of this Part                                                            390

357‑5..................... Object of this Part........................................................... 391

Subdivision 357‑B—Common rules for rulings                                             392

Rules for all rulings                                                                                               392

357‑50................... Scope of Division........................................................... 392

357‑55................... The provisions that are relevant for rulings..................... 393

357‑60................... When rulings are binding on the Commissioner............. 393

357‑65................... Stopping relying on a ruling........................................... 396

357‑70................... Commissioner may apply the law if more favourable than the ruling       397

357‑75................... Inconsistent rulings......................................................... 397

357‑80................... Contracts for schemes..................................................... 399

357‑85................... Effect on ruling if relevant provision re‑enacted............. 399

357‑90................... Validity of ruling not affected by formal defect.............. 399

Common rules for public and private rulings                                                400

357‑95................... Electronic communications............................................. 400

Common rules for private and oral rulings                                                    400

357‑105................. Further information must be sought................................ 400

357‑110................. Assumptions in making private or oral ruling................. 400

357‑115................. Additional information provided by applicant................. 401

357‑120................. Commissioner may take into account information from third parties       401

357‑125................. Applications and objections not to affect obligations and powers            401

Division 358—Public rulings                                                                              403

Guide to Division 358                                                                                            403

358‑1..................... What this Division is about............................................. 403

Making public rulings                                                                                           403

358‑5..................... What is a public ruling?.................................................. 403

358‑10................... Application of public rulings.......................................... 404

358‑15................... When a public ruling ceases to apply.............................. 404

Withdrawing public rulings                                                                                 405

358‑20................... Withdrawing public rulings............................................ 405

Division 359—Private rulings                                                                            406

Guide to Division 359                                                                                            406

359‑1..................... What this Division is about............................................. 406

Private rulings                                                                                                        407

359‑5..................... Private rulings................................................................. 407

359‑10................... Applying for a private ruling.......................................... 407

359‑15................... Private rulings to be given to applicants.......................... 407

359‑20................... Private rulings must contain certain details..................... 407

359‑25................... Time of application of private rulings............................. 408

359‑30................... Ruling for trustee of a trust............................................. 408

359‑35................... Dealing with applications................................................ 409

359‑40................... Valuations....................................................................... 409

359‑45................... Related rulings................................................................ 410

359‑50................... Delays in making private rulings.................................... 411

359‑55................... Revised private rulings................................................... 412

359‑60................... Objections, reviews and appeals relating to private rulings 413

359‑65................... Commissioner may consider new information on objection 414

359‑70................... Successful objection decision alters ruling...................... 414

Division 360—Oral rulings                                                                                 415

Guide to Division 360                                                                                            415

360‑1..................... What this Division is about............................................. 415

Oral rulings                                                                                                             415

360‑5..................... Applying for and making of oral rulings........................ 415

360‑10................... Withdrawing an application for an oral ruling................. 417

360‑15................... Commissioner determinations......................................... 417

Division 361—Non‑ruling advice and general administrative practice  418

361‑5..................... Non‑ruling advice and general administrative practice.... 418

Division 362—Rulings by Innovation and Science Australia that activities are not ineligible activities                419

Guide to Division 362                                                                                            419

362‑1..................... What this Division is about............................................. 419

Public rulings by Innovation and Science Australia                                     420

362‑5..................... Innovation and Science Australia may make public rulings on a specified class of activities   420

362‑10................... Application of public rulings.......................................... 421

362‑15................... When a public ruling ceases to apply.............................. 421

362‑20................... Withdrawing public rulings............................................ 421

Private rulings by Innovation and Science Australia                                   421

362‑25................... Innovation and Science Australia may make private rulings on a specified activity 421

362‑30................... Applying for a private ruling.......................................... 422

362‑35................... Innovation and Science Australia must give notice of its decision           422

362‑40................... Private rulings must contain certain details..................... 423

362‑45................... Application of private rulings......................................... 423

362‑50................... Delays in making private rulings.................................... 423

362‑55................... When a private ruling ceases to apply............................. 425

362‑60................... Withdrawing private rulings........................................... 425

General provisions                                                                                                 425

362‑65................... When rulings are binding on the Commissioner and Innovation and Science Australia           425

362‑70................... Application of common rules under Subdivision 357‑B. 426

362‑75................... Application of Divisions 358 and 359............................ 426

Part 5‑10—Commissioner’s remedial power                                               427

Division 370—Commissioner’s remedial power                                            427

Guide to Division 370                                                                                            427

370‑1..................... What this Division is about............................................. 427

Subdivision 370‑A—Commissioner’s remedial power                                 428

370‑5..................... Commissioner’s remedial power.................................... 428

370‑10................... Intended purpose or object.............................................. 429

370‑15................... Repeal of determinations................................................. 430

370‑20................... Commencement of determinations.................................. 430

Part 5‑25—Record‑keeping and other obligations relating to taxpayers            431

Division 382—Record‑keeping                                                                           431

Guide to Division 382                                                                                            431

382‑1..................... What this Division is about............................................. 431

Subdivision 382‑A—Keeping records of indirect tax transactions           431

382‑5..................... Keeping records of indirect tax transactions.................... 431

Subdivision 382‑B—Record keeping obligations of deductible gift recipients               435

382‑15................... Deductible gift recipients to keep records....................... 435

Division 384—Education directions                                                                  437

Guide to Division 384                                                                                            437

384‑5..................... What this Division is about............................................. 437

384‑10................... When an education direction may be given..................... 437

384‑15................... Education direction......................................................... 438

384‑20................... Approval of courses of education................................... 439

384‑25................... Costs of course of education........................................... 440

384‑30................... Variation or revocation on Commissioner’s own initiative 440

384‑35................... Variation on request........................................................ 440

384‑40................... Taxation objection........................................................... 441

Division 388—Requirements about giving material to the Commissioner 442

Subdivision 388‑A—Object of Division                                                            442

388‑5..................... Object of Division.......................................................... 442

Subdivision 388‑B—General provisions                                                          442

388‑50................... Approved forms............................................................. 442

388‑52................... Saturdays, Sundays and public holidays......................... 443

388‑55................... Commissioner may defer time for lodgment................... 443

388‑60................... Declaration by entity....................................................... 444

388‑65................... Declaration by entity where agent gives document......... 444

388‑70................... Declaration by agent....................................................... 445

388‑75................... Signing declarations........................................................ 445

388‑80................... Electronic notification of BAS amounts.......................... 446

388‑85................... Truncating amounts........................................................ 446

Division 389—Reporting by employers                                                           447

Guide to Division 389                                                                                            447

389‑1..................... What this Division is about............................................. 447

389‑5..................... Required reporting by employers.................................... 447

389‑10................... Exemptions..................................................................... 450

389‑15................... Voluntary reporting by employers in relation to taxation laws 450

389‑20................... Effect on reporting requirements under Subdivision 16‑C 451

389‑25................... Grace periods for correcting false or misleading notifications  452

389‑30................... Voluntary reporting by employers in relation to child support laws         453

Division 390Superannuation reporting                                                        456

Guide to Division 390                                                                                            456

390‑1..................... What this Division is about............................................. 456

Subdivision 390‑A—Member information statements and roll‑over superannuation benefit statements               456

390‑5..................... Member information statements...................................... 456

390‑7..................... Grace periods for correcting false or misleading member information statements    459

390‑10................... Statements about roll‑over superannuation benefits etc... 460

390‑12................... Statements about benefits paid to KiwiSaver schemes.... 462

390‑15................... Superannuation statements to members.......................... 463

390‑20................... Statements relating to holders of certain life insurance policies                464

Subdivision 390‑BStatements relating to release authorities                 465

390‑65................... Statements relating to release authorities......................... 465

Subdivision 390‑COther statements                                                              467

390‑115................. Change or omission in information given to the Commissioner               467

Division 392—Employee share scheme reporting                                         468

Guide to Division 392                                                                                            468

392‑1..................... What this Division is about............................................. 468

Subdivision 392‑A—Statements                                                                          468

392‑5..................... Statements by providers.................................................. 468

392‑10................... Change or omission in information given to the Commissioner               471

Subdivision 392‑B—Miscellaneous                                                                   472

392‑15................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997  472

Division 393—Reports by investment bodies                                                  473

Guide to Division 393                                                                                            473

393‑1..................... What this Division is about............................................. 473

393‑5..................... Reports about quoting tax file numbers and ABNs........ 473

393‑10................... Annual investment income reports.................................. 474

393‑15................... Errors in reports.............................................................. 475

Division 394Reporting about forestry managed investment schemes  476

Guide to Division 394                                                                                            476

394‑1..................... What this Division is about............................................. 476

394‑5..................... Statements about initial contributions to scheme............. 476

394‑10................... Statements about failure to establish trees within 18 months 477

Division 396—Third party reporting                                                               479

Guide to Division 396                                                                                            479

396‑1A.................. What this Division is about............................................. 479

Subdivision 396‑A—FATCA                                                                               479

Guide to Subdivision 396‑A                                                                                 479

396‑1..................... What this Subdivision is about....................................... 479

Operative provisions                                                                                             480

396‑5..................... Statements about U.S. Reportable Accounts................... 480

396‑10................... Statements about payments to Nonparticipating Financial Institutions     481

396‑15................... Meaning of the FATCA Agreement................................. 482

396‑20................... Permissions and elections............................................... 482

396‑25................... Record keeping............................................................... 483

Subdivision 396‑B—Information about transactions that could have tax consequences for taxpayers  484

Guide to Subdivision 396‑B                                                                                 484

396‑50................... What this Subdivision is about....................................... 484

Operative provisions                                                                                             484

396‑55................... Reporting tax‑related information about transactions to the Commissioner              484