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
3H......................... Reporting of information about research and development tax offset      12
Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation                                                                                                                 14
4............................ Commissioner and Second Commissioners of Taxation... 14
4A......................... Statutory Agency etc. for purposes of Public Service Act 14
5............................ Tenure of Commissioner and Second Commissioners..... 14
5A......................... Remuneration and allowances of Commissioner and Second Commissioners        14
6............................ Leave of absence............................................................... 15
6A......................... Resignation....................................................................... 15
6B.......................... Acting appointments......................................................... 15
6C.......................... Suspension and removal from office of Commissioner or Second Commissioner 16
6D......................... Powers of Second Commissioner..................................... 18
7............................ Deputy Commissioners of Taxation................................. 18
8............................ Delegation......................................................................... 19
Part IIA—The general interest charge                                                                  20
8AAA................... Overview.......................................................................... 20
8AAB.................... When the general interest charge applies........................... 20
8AAC.................... Amount of the general interest charge............................... 26
8AAD................... What is the general interest charge rate?......................... 27
8AAE.................... When the charge is due and payable................................. 28
8AAF.................... Notification by Commissioner.......................................... 28
8AAG................... Remission of the charge.................................................... 28
8AAGA................ Rounding of the charge..................................................... 29
8AAH................... Judgment for payment of an unpaid amount..................... 29
Part IIB—Running balance accounts, application of payments and credits, and related matters         31
Division 1—Preliminary                                                                                           31
8AAZA................. Definitions........................................................................ 31
8AAZAA.............. Amounts relating to Coronavirus economic response payments             34
8AAZB................. Trustee to be treated as separate entity for each capacity... 34
Division 2—Running Balance Accounts (or RBAs)                                   35
8AAZC................. Establishment of RBAs.................................................... 35
8AAZD................. Allocation of tax debts to RBAs....................................... 35
8AAZF.................. General interest charge on RBA deficit debt..................... 36
8AAZG................. RBA statements................................................................ 36
8AAZH................. Liability for RBA deficit debt........................................... 36
8AAZI................... RBA statement to be evidence.......................................... 37
8AAZJ.................. Evidentiary certificate about RBA transactions etc............ 37
Division 3—Treatment of payments, credits and RBA surpluses      39
8AAZL.................. Amounts covered by this Division................................... 39
8AAZLA............... Method 1—allocating the amount first to an RBA............ 40
8AAZLB............... Method 2—applying the amount first against a non‑RBA tax debt         40
8AAZLC............... RBA surplus and related credits must remain equivalent if one or the other is applied           41
8AAZLD............... Special priority credits...................................................... 41
8AAZLE............... Instructions to Commissioner not binding........................ 42
Division 3A—Refunds of RBA surpluses and credits                               43
8AAZLF............... Commissioner must refund RBA surpluses and credits... 43
8AAZLG............... Retaining refunds until information or notification given.. 44
8AAZLGA............ Retaining refunds while Commissioner verifies information 44
8AAZLGB............ Retaining refunds until notification under Division 389 or ascertainment of liability              47
8AAZLH............... How refunds are made...................................................... 49
Division 4—Miscellaneous provisions about tax debts                            50
8AAZM................ When payments are treated as received............................. 50
8AAZMA............. Electronic payment of tax debts........................................ 50
8AAZMB.............. Saturdays, Sundays and public holidays........................... 50
8AAZN................. Overpayments made by the Commissioner under taxation laws             51
Part III—Prosecutions and offences                                                                       52
Division 1—Preliminary                                                                                           52
8A......................... Interpretation..................................................................... 52
8AC....................... Application of Part to the Tax Agent Services Act 2009.... 53
Division 2—Offences                                                                                                  54
Subdivision A—Failure to comply with taxation requirements                  54
8B.......................... Interpretation..................................................................... 54
8C.......................... Failure to comply with requirements under taxation law... 55
8D......................... Failure to answer questions when attending before the Commissioner etc.             56
8E.......................... Penalties for failure to comply with requirements under taxation law     57
8F.......................... Election to treat offence otherwise than as prescribed taxation offence   57
8G......................... Order to comply with requirement.................................... 58
8H......................... Penalty for failure to comply with order to comply........... 58
8HA...................... Court may order payment of amount in addition to penalty 59
Subdivision B—Offences relating to statements, records and certain other Acts         59
8J........................... Interpretation..................................................................... 59
8K.......................... False or misleading statements.......................................... 66
8L.......................... Incorrectly keeping records etc......................................... 68
8M......................... Penalties for offences against subsections 8K(1) and (1B) and 8L(1) and (1A)Â Â Â Â Â 69
8N......................... Recklessly making false or misleading statements............ 69
8Q......................... Recklessly incorrectly keeping records etc........................ 71
8R.......................... Penalties for offences against sections 8N and 8Q........... 71
8S.......................... Election to treat offence otherwise than as prescribed taxation offence   72
8T.......................... Incorrectly keeping records with intention of deceiving or misleading etc.             72
8U......................... Falsifying or concealing identity with intention of deceiving or misleading etc.      73
8V......................... Penalties for offences against sections 8T and 8U............ 74
8W......................... Court may order payment of amount in addition to penalty 74
Subdivision BAA—Offences relating to electronic sales suppression tools 78
8WAA................... Object of this Subdivision................................................ 78
8WAB................... Interpretation..................................................................... 78
8WAC................... Producing or supplying electronic sales suppression tools 79
8WAD................... Possessing electronic sales suppression tools................... 80
8WAE................... Incorrectly keeping records using electronic sales suppression tools      80
Subdivision BA—Offences relating to tax file numbers                               81
8WA...................... Unauthorised requirement etc. that tax file number be quoted 81
8WB...................... Unauthorised recording etc. of tax file number................. 82
8WC...................... Conducting affairs so as to avoid tax file number requirements              83
Subdivision C—Miscellaneous                                                                             85
8XA...................... Unauthorised access to taxation records........................... 85
8Y......................... Liability of officers etc. of corporations............................ 85
8Z.......................... Evidentiary certificate relating to previous convictions..... 86
Division 3—Prosecution of taxation offences                                               88
8ZA....................... Prosecution of taxation offences....................................... 88
8ZB....................... Prosecution may be commenced at any time..................... 89
8ZC....................... Place where offence committed......................................... 89
8ZD....................... Conduct by employees or agents of corporations............. 90
8ZE........................ Civil penalty not payable if prosecution instituted............. 90
8ZF........................ Penalties for corporations................................................. 91
8ZG....................... Enforcement of orders for payment.................................. 91
8ZH....................... Penalties not to relieve from tax........................................ 92
Division 4—Prescribed taxation offences                                                       93
8ZJ........................ Prosecution of prescribed taxation offences...................... 93
8ZK....................... Protection of witnesses..................................................... 94
8ZL........................ Averment.......................................................................... 95
8ZM...................... Evidence of authority to institute proceedings................... 95
8ZN....................... Costs................................................................................. 96
Division 5—Service of summons for prescribed taxation offences   97
9............................ Interpretation..................................................................... 97
10.......................... Service of summons by post............................................. 97
11.......................... Notice of conviction in absentia....................................... 98
12.......................... Notice of intention to issue warrant in default of payment 98
13.......................... Limitation of action to enforce payment of fine................. 99
13A....................... Setting aside of conviction or order.................................. 99
13B........................ Proof of service of summons or notice........................... 102
13C........................ Application of other laws................................................ 102
Division 6—Setting aside etc. of conviction or order on application of Commissioner               103
13CA..................... Setting aside etc. of conviction or order on application of Commissioner               103
Part IIIA—Co‑operation between Commonwealth and State taxation authorities         105
Division 1—Interpretation                                                                                    105
13D....................... Interpretation................................................................... 105
Division 2—Trans‑border investigations                                                      107
13E........................ State taxation officers may refer matters to Commissioner for investigation           107
13F........................ Access to documents etc................................................. 107
13G....................... Commissioner may obtain information and evidence...... 108
Division 4—Certification by State taxation officer of copies of, and extracts from, documents            110
13K........................ Certification by State taxation officer of copies of, and extracts from, documents  110
Division 5—Australian Taxation Office may perform functions under State/Territory debits tax laws                                                                                                                   112
13L........................ Australian Taxation Office may perform functions under State/Territory debits tax laws       112
Part IVA—Departure from Australia of certain tax debtors                114
Division 1—Interpretation                                                                                    114
14Q....................... Interpretation................................................................... 114
Division 2—Prohibition and authorisation of departure of certain tax debtors              115
14R........................ Departure from Australia of certain tax debtors prohibited 115
14S........................ Departure prohibition orders........................................... 115
14T........................ Revocation and variation of departure prohibition orders 116
14U....................... Departure authorisation certificates................................. 117
Division 3—Appeals from, and review of, decisions of the Commissioner         120
14V....................... Appeals to courts against making of departure prohibition orders          120
14W....................... Jurisdiction of courts...................................................... 120
14X....................... Orders of court on appeal............................................... 120
14Y....................... Applications for review of certain decisions................... 121
Division 4—Enforcement                                                                                       122
14Z........................ Powers of authorised officers......................................... 122
14ZA..................... Certain tax debtors to produce authority to depart etc..... 123
Part IVC—Taxation objections, reviews and appeals                                124
Division 1—Introduction                                                                                       124
14ZL...................... Part applies to taxation objections................................... 124
14ZM.................... Division 2—Interpretive................................................. 124
14ZN..................... Division 3—Taxation objections.................................... 124
14ZO..................... Division 4—Tribunal review.......................................... 124
14ZP...................... Division 5—Federal Court appeals................................. 124
Division 2—Interpretive provisions                                                                 125
14ZQ..................... General interpretation provisions.................................... 125
14ZR..................... Taxation decisions covered by single notice to be treated as single decision           126
14ZS...................... Ineligible income tax remission decisions....................... 126
Division 3—Taxation objections                                                                        128
14ZU..................... How taxation objections are to be made.......................... 128
14ZV..................... Limited objection rights in the case of certain amended taxation decisions              128
14ZVA.................. Limited objection rights because of other objections....... 128
14ZVB.................. Objections relating to excess concessional contributions 129
14ZVC.................. Objections relating to non‑concessional contributions.... 130
14ZW.................... When taxation objections are to be made........................ 131
14ZX..................... Commissioner to consider applications for extension of time 137
14ZY..................... Commissioner to decide taxation objections................... 137
14ZYA.................. Person may require Commissioner to make an objection decision          138
14ZYB.................. Requiring Commissioner to make a private ruling.......... 139
14ZZ...................... Person may seek review of, or appeal against, Commissioner’s decision               139
Division 4—AAT review of objection decisions and extension of time refusal decisions            141
14ZZA................... Modified AAT Act to apply........................................... 141
14ZZB................... Sections 27, 28, 41 and 44A of the AAT Act not to apply to certain decisions      141
14ZZC................... Modification of section 29 of the AAT Act.................... 141
14ZZD................... Modification of section 30 of the AAT Act.................... 142
14ZZE................... Hearings before Tribunal to be held in private if applicant so requests   142
14ZZF................... Modification of section 37 of the AAT Act.................... 142
14ZZG................... Modification of section 38 of the AAT Act.................... 143
14ZZJ.................... Modification of section 43 of the AAT Act.................... 144
14ZZK................... Grounds of objection and burden of proof..................... 144
14ZZL................... Implementation of Tribunal decisions............................. 145
14ZZM.................. Pending review not to affect implementation of taxation decisions         145
Division 5—Court appeals against objection decisions                         146
14ZZN................... Time limit for appeals..................................................... 146
14ZZO................... Grounds of objection and burden of proof..................... 146
14ZZP................... Order of court on objection decision............................... 146
14ZZQ................... Implementation of court order in respect of objection decision               146
14ZZR................... Pending appeal not to affect implementation of taxation decisions          147
14ZZS................... Transfer of certain proceedings to Federal Circuit and Family Court of Australia (Division 1)Â Â Â Â Â Â Â Â Â Â Â Â Â Â 147
Part IVD—Protection for whistleblowers                                                          150
14ZZT................... Disclosures qualifying for protection under this Part...... 150
14ZZU................... Eligible whistleblowers................................................... 151
14ZZV................... Eligible recipients............................................................ 152
14ZZW.................. Confidentiality of whistleblower’s identity..................... 153
14ZZX................... Disclosure that qualifies for protection not actionable etc. 154
14ZZY................... Victimisation prohibited.................................................. 155
14ZZZ................... Compensation and other remedies—circumstances in which an order may be made              156
14ZZZAA............. Detriment........................................................................ 158
14ZZZA................ Compensation and other remedies—orders that may be made 159
14ZZZB................. Identifying information not to be disclosed etc. to courts or tribunals     161
14ZZZC................. Costs only if proceedings instituted vexatiously etc........ 161
14ZZZD................ Interaction between civil proceedings and criminal offences 162
14ZZZE................. Compensation for acquisition of property....................... 162
Part V—Miscellaneous                                                                                                   163
15.......................... Appearance by Commissioner etc................................... 163
15A....................... Certification by Commissioner of copies of, and extracts from, documents            164
15B........................ Recoverable advances..................................................... 166
15C........................ Recoverable payments.................................................... 167
15D....................... Reports about recoverable advances and recoverable payments              169
16.......................... Payments out of Consolidated Revenue Fund................ 171
16A....................... Regulations may provide for methods of payment of tax liabilities etc.   172
16B........................ Certain liabilities to be reduced to nearest multiple of 5 cents.. 173
17.......................... Powers of taxation officers in relation to references to currency etc.       173
17A....................... Powers of Federal Court and Federal Circuit and Family Court of Australia (Division 2) in respect of taxation matters............................................................................ 174
18.......................... Regulations..................................................................... 175
Schedule 1—Collection and recovery of income tax and other liabilities              176
Chapter 2—Collection, recovery and administration of income tax 176
Part 2‑1—Introduction to the Pay as you go (PAYG) system           176
Division 6—Guide to Parts 2‑5 and 2‑10                                                         176
6‑1......................... What Parts 2‑5 and 2‑10 are about.................................. 176
6‑5......................... The Pay as you go (PAYG) system............................... 176
6‑10....................... How the amounts collected are dealt with....................... 177
Part 2‑5—Pay as you go (PAYG) withholding                                          178
Division 10—Guide to Part 2‑5                                                                          178
10‑1....................... What this Part is about.................................................... 178
10‑5....................... Summary of withholding payments................................ 178
Division 11—Preliminary matters                                                                   181
11‑1....................... Object of this Part........................................................... 181
11‑5....................... Constructive payment..................................................... 181
Division 12—Payments from which amounts must be withheld                183
Subdivision 12‑A—General rules                                                                      183
12‑1....................... General exceptions.......................................................... 184
12‑5....................... What to do if more than one provision requires a withholding 185
12‑7....................... Division does not apply to alienated personal services payments            187
12‑10..................... Division does not apply to non‑cash benefits................. 187
12‑20..................... Application of Division and regulations to non‑share dividends             187
Subdivision 12‑B—Payments for work and services                                   188
12‑35..................... Payment to employee...................................................... 188
12‑40..................... Payment to company director.......................................... 188
12‑45..................... Payment to office holder................................................. 188
12‑47..................... Payment to religious practitioners................................... 189
12‑50..................... Return to work payment................................................. 189
12‑55..................... Voluntary agreement to withhold.................................... 190
12‑60..................... Payment under labour hire arrangement, or specified by regulations      191
Subdivision 12‑C—Payments for retirement or because of termination of employment           192
12‑80..................... Superannuation income streams and annuities................ 192
12‑85..................... Superannuation lump sums and payments for termination of employment             192
12‑90..................... Unused leave payments.................................................. 192
Subdivision 12‑D—Benefit and compensation payments                            192
12‑110................... Social Security or other benefit payment......................... 193
12‑115................... Commonwealth education or training payment............... 193
12‑120................... Compensation, sickness or accident payment................. 194
Subdivision 12‑E—Payments where TFN or ABN not quoted                   194
Payment in respect of investment                                                                      195
12‑140................... Recipient does not quote tax file number........................ 195
12‑145................... Investor becoming presently entitled to income of a unit trust 196
12‑150................... Limited application of section 12‑140 to payment under financial arrangement      197
12‑152................... Limited application of section 12‑140 to payment covered by section 12A‑205     198
12‑155................... When investor may quote ABN as alternative................ 198
12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying               198
12‑165................... Exception for fully franked dividend.............................. 199
12‑170................... Exception for payments below thresholds set by regulations 199
Payment of income of closely held trust where TFN not quoted               199
12‑175................... Trustee distributes income of closely held trust.............. 199
12‑180................... Beneficiary becomes presently entitled to income of closely held trust   201
12‑185................... Exception for payments below thresholds set by regulations 202
Payment for a supply                                                                                           203
12‑190................... Recipient does not quote ABN....................................... 203
Subdivision 12‑F—Dividend, interest and royalty payments                     206
Dividends          207
12‑210................... Dividend payment to overseas person............................ 207
12‑215................... Dividend payment received for foreign resident............. 207
12‑220................... Application to part of a dividend..................................... 208
12‑225................... Application to distribution by a liquidator or other person 208
Interest              208
12‑245................... Interest payment to overseas person............................... 208
12‑250................... Interest payment received for foreign resident................ 209
12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 209
12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment       210
Royalties           210
12‑280................... Royalty payment to overseas person............................... 210
12‑285................... Royalty payment received for foreign resident................ 211
General             212
12‑300................... Limits on amount withheld under this Subdivision......... 212
Subdivision 12‑FA—Departing Australia superannuation payments      212
12‑305................... Departing Australia superannuation payment................. 212
12‑310................... Limits on amount withheld under this Subdivision......... 212
Subdivision 12‑FAA—Excess untaxed roll‑over amount                            213
12‑312................... Untaxed roll‑over superannuation benefits..................... 213
12‑313................... Limits on amount withheld under this Subdivision......... 213
Subdivision 12‑FB—Payments to foreign residents etc.                              214
12‑315................... Payment to foreign resident etc....................................... 214
12‑317................... Payment received for foreign resident etc....................... 215
12‑319................... Exemptions from withholding obligations under this Subdivision          216
Subdivision 12‑FC—Seasonal Labour Mobility Program                         217
12‑319A................ Payment to employee...................................................... 218
Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources               218
Mining on Aboriginal land                                                                                 218
12‑320................... Mining payment.............................................................. 218
Natural resources                                                                                                  219
12‑325................... Natural resource payment............................................... 219
12‑330................... Payer must ask Commissioner how much to withhold... 219
12‑335................... Commissioner may exempt from section 12‑330, subject to conditions  220
Subdivision 12‑H—Distributions of withholding MIT income                  221
Guide to Subdivision 12‑H                                                                                  221
12‑375................... What this Subdivision is about....................................... 221
Operative provisions                                                                                            223
12‑383................... Meaning of withholding MIT.......................................... 223
12‑385................... Withholding by withholding MITs................................. 223
12‑390................... Withholding by custodians and other entities.................. 225
12‑395................... Requirement to give notice or make information available 228
12‑405................... Meaning of fund payment—general case........................ 231
12‑410................... Entity to whom payment is made.................................... 234
12‑415................... Failure to give notice or make information available: administrative penalty           234
12‑420................... Agency rules................................................................... 235
12‑425................... Meaning of clean building managed investment trust.... 235
12‑430................... Meaning of clean building.............................................. 236
12‑435................... Meaning of non‑concessional MIT income.................... 237
12‑436................... Meaning of asset entity, operating entity, cross staple arrangement and stapled entity          237
12‑437................... Meaning of MIT cross staple arrangement income....... 239
12‑438................... MIT cross staple arrangement income—de minimis exception               241
12‑439................... MIT cross staple arrangement income—approved economic infrastructure facility exception 242
12‑440................... Transitional—MIT cross staple arrangement income...... 244
12‑441................... Integrity rule—concessional cross staple rent cap........... 247
12‑442................... Meaning of excepted MIT CSA income........................... 248
12‑443................... Concessional cross staple rent cap—existing lease with specified rent or rent method           248
12‑444................... Concessional cross staple rent cap—general................... 249
12‑445................... Asset entity to allocate deductions first against rental income that is not MIT cross staple arrangement income........................................................................................ 250
12‑446................... Meaning of MIT trading trust income............................ 251
12‑447................... Transitional—MIT trading trust income......................... 252
12‑448................... Meaning of MIT agricultural income, Australian agricultural land for rent and Division 6C land       253
12‑449................... Transitional—MIT agricultural income........................... 254
12‑450................... Meaning of MIT residential housing income.................. 256
12‑451................... Transitional—MIT residential housing income............... 257
12‑452................... Meaning of residential dwelling asset............................ 258
12‑453................... MIT agricultural income and MIT residential housing income—capital gains in relation to membership interests........................................................................... 259
Subdivision 12‑J—FHSS released amounts                                                    261
12‑460................... FHSS released amounts.................................................. 261
Division 12A—Distributions by AMITs (including deemed payments)   262
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 262
12A‑1.................... What this Division is about............................................. 262
Subdivision 12A‑A—Distributions by AMITs relating to dividend, interest and royalties         263
Guide to Subdivision 12A‑A                                                                                263
12A‑5.................... What this Subdivision is about....................................... 263
Operative provisions                                                                                            263
12A‑10.................. Deemed payments—no obligation to withhold under Subdivision 12‑F (dividend, interest and royalty payments)....................................................................... 263
12A‑15.................. Dividend, interest or royalty payments relating to AMIT—requirement to give notice or make information available.......................................................................... 264
12A‑20.................. Failure to give notice or make information available under section 12A‑15: administrative penalty        267
12A‑25.................. Meaning of AMIT DIR payment..................................... 267
12A‑30.................. Meaning of AMIT dividend payment.............................. 268
12A‑35.................. Meaning of AMIT interest payment................................ 269
12A‑40.................. Meaning of AMIT royalty payment................................. 270
Subdivision 12A‑B—Distributions by AMITs relating to Subdivision 12‑H fund payments      271
Guide to Subdivision 12A‑B                                                                                271
12A‑100................ What this Subdivision is about....................................... 271
Operative provisions                                                                                            271
12A‑105................ Deemed payments—no obligation to withhold under Subdivision 12‑H 271
12A‑110................ Meaning of fund payment—AMITs............................... 272
Subdivision 12A‑C—Deemed payments by AMITs etc.                               276
Guide to Subdivision 12A‑C                                                                                276
12A‑200................ What this Subdivision is about....................................... 276
Operative provisions                                                                                            277
12A‑205................ Issue of AMMA statement etc. deemed to be payment... 277
12A‑210................ Post‑AMMA actual payment and pre‑AMMA actual payment in respect of deemed payment 279
12A‑215................ AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc. 280
12A‑220................ Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc.          281
Division 13—Alienated personal services payments                                    284
13‑1....................... Object of this Division.................................................... 284
13‑5....................... Payment to the Commissioner in respect of alienated personal services payments  284
13‑10..................... Alienated personal services payments............................. 287
13‑15..................... Personal services payment remitters............................... 288
13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01   289
Division 14—Benefits, gains and taxable supplies for which amounts must be paid to the Commissioner            290
Subdivision 14‑A—Non‑cash benefits                                                              290
14‑1....................... Object of this Subdivision.............................................. 290
14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding..................................................................... 290
14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit             291
14‑15..................... Payer can recover amount paid to the Commissioner...... 292
Subdivision 14‑B—Accruing gains                                                                   292
14‑50..................... Object of this Subdivision.............................................. 292
14‑55..................... Liability for TFN withholding tax................................... 293
14‑60..................... Investment body may recover TFN withholding tax from investor         294
14‑65..................... Application of rules in Division 18................................. 294
14‑75..................... Overpayment of TFN withholding tax............................ 295
14‑85..................... Other laws do not exempt from TFN withholding tax.... 295
Subdivision 14‑C—Shares and rights under employee share schemes    296
14‑155................... Liability for TFN withholding tax (ESS)........................ 296
14‑160................... Employer may give individual tax file numbers to provider 297
14‑165................... Provider may recover TFN withholding tax (ESS) from individual        297
14‑170................... Application of rules in Division 18................................. 298
14‑175................... Overpayment of TFN withholding tax (ESS)................. 298
14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997 298
Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property       299
14‑200................... Certain acquisitions of taxable Australian property from foreign residents             299
14‑205................... Effect of look‑through earnout rights.............................. 300
14‑210................... Whether an entity is a relevant foreign resident............... 301
14‑215................... Excluded transactions..................................................... 303
14‑220................... Commissioner clearance certificates................................ 305
14‑225................... Entity declarations........................................................... 305
14‑230................... Administrative penalties for false or misleading declarations 306
14‑235................... Varying amounts to be paid to the Commissioner.......... 307
Subdivision 14‑E—GST payable on taxable supplies of certain real property             308
14‑250................... Recipients of certain taxable supplies of real property must pay amounts to Commissioner   309
14‑255................... Notification by suppliers of residential premises etc....... 311
Division 15—Working out the amount to withhold                                      314
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 314
15‑1....................... What this Division is about............................................. 314
Subdivision 15‑A—Working out how much to withhold                             314
15‑10..................... How much to withhold................................................... 315
15‑15..................... Variation of amounts required to be withheld................. 315
Subdivision 15‑B—Withholding schedules and regulations                       316
15‑25..................... Commissioner’s power to make withholding schedules. 316
15‑30..................... Matters to be considered when making withholding schedules               317
15‑35..................... Regulations about withholding....................................... 318
Subdivision 15‑C—Declarations                                                                       319
15‑50..................... Declarations.................................................................... 319
Division 16—Payer’s obligations and rights                                                  321
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 321
16‑1....................... What this Division is about............................................. 321
Subdivision 16‑A—To withhold                                                                         321
When to withhold                                                                                                   322
16‑5....................... When to withhold an amount.......................................... 322
16‑7....................... Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12    322
16‑20..................... Payer discharged from liability to recipient for amount withheld            323
Penalties for not withholding                                                                             323
16‑25..................... Failure to withhold: offence............................................ 323
16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 324
16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty............................ 325
16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment.............................................. 326
16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.......................................................... 326
Subdivision 16‑B—To pay withheld amounts to the Commissioner        327
When and how to pay amounts to the Commissioner                                   327
16‑70..................... Entity to pay amounts to Commissioner......................... 327
16‑75..................... When amounts must be paid to Commissioner............... 328
16‑80..................... Penalty for failure to pay within time.............................. 330
16‑85..................... How amounts are to be paid........................................... 330
Who is a large, medium or small withholder                                                 331
16‑95..................... Meaning of large withholder.......................................... 331
16‑100................... Meaning of medium withholder...................................... 332
16‑105................... Meaning of small withholder.......................................... 332
16‑110................... Commissioner may vary withholder’s status downwards 332
16‑115................... Commissioner may vary withholder’s status upwards... 333
Subdivision 16‑BA—To be registered                                                              334
Registration of withholders                                                                                335
16‑140................... Withholders must be registered....................................... 335
16‑141................... Registration and cancellation........................................... 336
Branch registration                                                                                              336
16‑142................... Branches may be registered............................................ 336
16‑143................... Separate amounts for entities and branches..................... 337
16‑144................... Cancellation of branch registration.................................. 337
16‑145................... Effect on branches of cancelling the entity’s registration 337
Registration of employers of working holiday makers                               338
16‑146................... Employers of working holiday makers must be registered 338
16‑147................... Registering employers of working holiday makers......... 338
16‑148................... Cancelling the registration of employers of working holiday makers      340
Subdivision 16‑C—To provide information                                                  342
To the Commissioner                                                                                           342
16‑150................... Commissioner must be notified of amounts.................... 342
16‑152................... Annual reports—Withholding payments covered by section 12‑175      343
16‑153................... Annual reports—other payments.................................... 344
To recipients of withholding payments                                                            347
16‑155................... Annual payment summary.............................................. 347
16‑156................... Annual payment summary for sections 12‑175 and 12‑180 349
16‑157................... Payment summary for Subdivision 12‑H....................... 349
16‑160................... Part‑year payment summary........................................... 350
16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment        351
16‑166................... Payment summary for a departing Australia superannuation payment    352
16‑167................... Payment summary for payment to recipient who does not quote ABN   352
16‑170................... Form and content of payment summary.......................... 353
16‑175................... Penalty for not providing payment summary.................. 354
16‑180................... Commissioner may exempt entity from giving payment summary          355
16‑182................... Definition of reportable employer superannuation contribution            355
Subdivision 16‑D—Additional rights and obligations of entity that makes a payment               356
16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes   356
Division 18—Recipient’s entitlements and obligations                                358
Subdivision 18‑A—Crediting withheld amounts                                           358
Guide to Subdivision 18‑A                                                                                   358
18‑1....................... What this Subdivision is about....................................... 358
General exception                                                                                                 360
18‑5....................... No credit for refunded amount........................................ 360
Entitlement to credits: income tax liability                                                    360
18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 360
18‑15..................... Tax credit for recipient of withholding payments............ 361
18‑20..................... Tax credit where recipient is a partnership...................... 361
18‑25..................... Tax credit where recipient is a trust................................. 362
18‑27..................... Tax credit for alienated personal services payments........ 364
Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program                                                                   364
18‑30..................... Credit: dividend, interest or royalty................................. 364
18‑32..................... Credit: amount attributable to fund payment................... 365
18‑33..................... Credit: Seasonal Labour Mobility Program.................... 366
18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge              366
18‑40..................... Credit: liability under Part 4‑25....................................... 368
Entitlement to credit: departing Australia superannuation payment      370
18‑42..................... Credit—departing Australia superannuation payment..... 370
Entitlement to credit: mining payment                                                            371
18‑45..................... Credit—mining payment................................................. 371
Entitlement to credit: Petroleum resource rent tax                                      372
18‑55..................... Credit—Natural resource payments................................ 372
Entitlement to credit: taxable supply of real property                                372
18‑60..................... Credit—payment relating to taxable supply of real property 372
Subdivision 18‑B—Refund of certain withheld amounts                            373
18‑65..................... Refund of withheld amounts by the payer to the recipient 373
18‑70..................... Refund of withheld amounts by the Commissioner to the recipient        376
18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment          378
18‑85..................... Refund by Commissioner of amount withheld from payment in respect of supply of real property       379
Subdivision 18‑C—Recipient’s obligations                                                     379
18‑100................... Obligation to keep payment summary............................. 379
Subdivision 18‑D—Directors etc. of non‑complying companies               380
Object of Subdivision                                                                                           381
18‑120................... Object of Subdivision..................................................... 381
PAYG withholding non‑compliance tax                                                          381
18‑125................... Directors of non‑complying companies.......................... 381
18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances      383
18‑135................... Associates of directors of non‑complying companies..... 385
18‑140................... Notices............................................................................ 388
18‑145................... When PAYG withholding non‑compliance tax must be paid.. 390
18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax              390
18‑155................... Validity of decisions and evidence.................................. 391
18‑160................... Rights of indemnity and contribution.............................. 391
Credits for later compliance                                                                              392
18‑165................... Credits for later compliance—scope............................... 392
18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances         393
18‑175................... Credits for later compliance—Commissioner may give notice 394
18‑180................... Effect of earlier credits.................................................... 395
Other provisions                                                                                                    396
18‑185................... When Commissioner may give notice............................. 396
18‑190................... Review of decisions........................................................ 397
Division 20—Other matters                                                                                398
Subdivision 20‑B—Offences                                                                               398
20‑35..................... Offences......................................................................... 398
20‑40..................... Joining of charges........................................................... 399
20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company   400
Subdivision 20‑D—Review of decisions                                                           401
20‑80..................... Reviewable decisions...................................................... 401
Division 21—Entitlements relating to insolvent ADIs and general insurers 403
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 403
21‑1....................... What this Division is about............................................. 403
Subdivision 21‑A—Treatment of some payments by APRA                      403
21‑5....................... APRA treated like ADI or general insurance company.. 403
Part 2‑10—Pay as you go (PAYG) instalments                                         405
Division 45—Instalment payments                                                                   405
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 406
45‑1....................... What this Division is about............................................. 406
Subdivision 45‑A—Basic rules                                                                           407
45‑5....................... Object of this Part........................................................... 407
45‑10..................... Application of Part.......................................................... 409
45‑15..................... Liability for instalments.................................................. 409
45‑20..................... Information to be given to the Commissioner by certain payers              410
45‑25..................... Penalty for failure to notify Commissioner..................... 411
45‑30..................... Credit for instalments payable......................................... 411
Subdivision 45‑B—When instalments are due                                               412
45‑50..................... Liability to pay instalments............................................. 412
45‑60..................... Meaning of instalment quarter....................................... 413
45‑61..................... When quarterly instalments are due—payers of quarterly instalments    414
45‑65..................... Meaning of instalment month......................................... 415
45‑67..................... When monthly instalments are due—payers of monthly instalments      415
45‑70..................... When annual instalments are due.................................... 416
45‑72..................... Means of payment of instalment..................................... 416
45‑75..................... Instalments recoverable in same way as income tax........ 416
45‑80..................... General interest charge on late payment.......................... 416
45‑90..................... Commissioner may withdraw instalment rate................. 416
Subdivision 45‑C—Working out instalment amounts                                  417
45‑110................... How to work out amount of quarterly instalment on instalment income basis        417
45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax  418
45‑114................... How to work out amount of monthly instalment............ 419
45‑115................... How to work out amount of annual instalment............... 420
45‑120................... Meaning of instalment income........................................ 421
Subdivision 45‑D—Quarterly payers                                                               425
45‑125................... Quarterly payer who pays instalments on the basis of instalment income               425
45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax    427
45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 430
45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 431
Subdivision 45‑DA—Monthly payers                                                               432
45‑136................... Monthly payer................................................................ 432
45‑138................... Monthly payer requirement............................................. 433
Subdivision 45‑E—Annual payers                                                                    435
When you start and stop being an annual payer                                           435
45‑140................... Choosing to pay annual instalments................................ 435
45‑145................... Meaning of instalment group......................................... 437
45‑150................... Entity stops being annual payer if involved with GST registration or instalment group          437
45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly     438
45‑160................... Head company of a consolidated group stops being annual payer          439
Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income                                                                                        440
45‑200................... Application..................................................................... 440
45‑205................... Choosing a varied instalment rate................................... 440
45‑210................... Notifying Commissioner of varied instalment rate.......... 441
45‑215................... Credit on using varied rate in certain cases..................... 441
Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low             442
45‑225................... Effect of Subdivision in relation to monthly payers........ 443
45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate    443
45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax........................................................................................ 445
45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment     453
45‑235................... Liability to GIC on shortfall in annual instalment........... 454
45‑240................... Commissioner may remit general interest charge............ 456
Subdivision 45‑H—Partnership income                                                          456
45‑260................... Instalment income for a period in which you are in a partnership           456
Subdivision 45‑I—Trust income included in instalment income of beneficiary           457
45‑280................... Instalment income for a period in which you are a beneficiary of a trust 458
45‑285................... Instalment income includes distributions by certain resident unit trusts  460
45‑286................... Instalment income includes distributions by certain managed investment trusts      462
45‑287................... When trusts are disqualified due to concentrated ownership 462
45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled 464
45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income               465
Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax         465
45‑320................... Working out instalment rate............................................ 465
45‑325................... Working out your notional tax........................................ 466
45‑330................... Working out your adjusted taxable income.................... 468
45‑335................... Working out your adjusted withholding income............. 470
45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income          470
Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax            473
45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax     473
45‑360................... How Commissioner works out benchmark instalment rate 474
45‑365................... Working out your benchmark tax................................... 474
45‑370................... Working out your adjusted assessed taxable income for the variation year            475
45‑375................... Adjusted assessed tax on adjusted assessed taxable income 476
Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax                                                                                                478
45‑400................... Working out amount of instalment—payers of 4 quarterly instalments   479
45‑402................... Working out amount of instalment—payers of 2 quarterly instalments   480
45‑405................... Working out your GDP‑adjusted notional tax................ 482
Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax                                                                                                484
45‑410................... Working out amount of instalment—payers of 4 quarterly instalments   485
45‑412................... Working out amount of instalment—payers of 2 quarterly instalments   487
45‑415................... Estimating your benchmark tax....................................... 488
45‑420................... Credit in certain cases where amount of instalment is nil 489
Subdivision 45‑N—How this Part applies to the trustee of a trust            490
Trustees to whom this Part applies                                                                   490
45‑450................... Trustees to whom a single instalment rate is given......... 490
45‑455................... Trustees to whom several instalment rates are given....... 491
45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 492
45‑465................... Meaning of instalment income........................................ 492
45‑468................... Multi‑rate trustee may pay quarterly instalments............. 493
How Commissioner works out instalment rate and notional tax for a multi‑rate trustee           493
45‑470................... Working out instalment rate............................................ 493
45‑473................... Commissioner must notify you of notional tax............... 494
45‑475................... Working out your notional tax........................................ 494
45‑480................... Working out your adjusted taxable income.................... 495
45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share        495
45‑485................... Working out your adjusted withholding income............. 496
How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee               497
45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax     497
45‑530................... How Commissioner works out benchmark instalment rate 497
45‑535................... Working out your benchmark tax................................... 498
Subdivision 45‑P—Anti‑avoidance rules                                                         498
45‑595................... Object of this Subdivision.............................................. 499
45‑597................... Effect of Subdivision in relation to instalment months.... 499
45‑600................... General interest charge on tax benefit relating to instalments 499
45‑605................... When do you get a tax benefit from a scheme?............... 501
45‑610................... What is your tax position for an income year?................ 502
45‑615................... What is your hypothetical tax position for an income year? 504
45‑620................... Amount on which GIC is payable, and period for which it is payable    504
45‑625................... Credit if you also got a tax detriment from the scheme... 505
45‑630................... When do you get a tax detriment from a scheme?........... 506
45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides               507
45‑640................... Commissioner may remit general interest charge in special cases           509
Subdivision 45‑Q—General rules for consolidated groups                        509
Guide to Subdivision 45‑Q                                                                                  509
45‑700................... What this Subdivision is about....................................... 509
Application of Subdivision                                                                                  510
45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers      510
45‑705................... Application of Subdivision to head company................. 511
Usual operation of this Part for consolidated group members                 515
45‑710................... Single entity rule............................................................. 515
45‑715................... When instalments are due—modification of section 45‑61 516
45‑720................... Head company cannot be an annual payer—modification of section 45‑140          516
Membership changes                                                                                            516
45‑740................... Change of head company................................................ 516
45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group)             519
45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group)          520
45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax  522
Subdivision 45‑R—Special rules for consolidated groups                          524
Guide to Subdivision 45‑R                                                                                   524
45‑850................... What this Subdivision is about....................................... 524
Operative provisions                                                                                            525
45‑855................... Section 701‑1 disregarded for certain purposes.............. 525
45‑860................... Member having a different instalment period.................. 525
45‑865................... Credit rule....................................................................... 526
45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment      528
45‑875................... Other rules about the general interest charge................... 531
45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group         532
45‑885................... Early application of Subdivision 45‑Q to the head company of a new group          534
Subdivision 45‑S—MEC groups                                                                        535
Guide to Subdivision 45‑S                                                                                   535
45‑900................... What this Subdivision is about....................................... 535
Preliminary     536
45‑905................... Objects of Subdivision................................................... 536
General modification rules                                                                                 537
45‑910................... Extended operation of Part to cover MEC groups.......... 537
Extended operation of Subdivision 45‑Q                                                        538
45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups 538
45‑915................... Application of Subdivision 45‑Q to provisional head company              538
45‑917................... Assumption for applying section 45‑710 (single entity rule) 542
45‑920................... Change of provisional head company............................. 542
45‑922................... Life insurance company.................................................. 545
Extended operation of Subdivision 45‑R                                                         546
45‑925................... Additional modifications of sections 45‑855 and 45‑860 546
45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision    546
45‑935................... Additional modifications of section 45‑885.................... 547
Part 2‑15—Returns and assessments                                                              548
Division 70—Tax receipts                                                                                   548
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 548
70‑1....................... What this Division is about............................................. 548
Subdivision 70‑A—Tax receipts                                                                        548
70‑5....................... Tax receipt to be provided to certain individual taxpayers 549
Part 2‑30—Collecting Medicare levy with income tax                          551
Division 90—Medicare levy and Medicare levy surcharge                       551
Subdivision 90‑A—Treatment like income tax                                              551
90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 551
Part 2‑35—Excess superannuation contributions                                    552
Division 97—Excess contributions determinations                                      552
Subdivision 97‑A—Excess concessional contributions determinations   552
Guide to Subdivision 97‑A                                                                                   552
97‑1....................... What this Subdivision is about....................................... 552
Operative provisions                                                                                            552
97‑5....................... Determination of excess concessional contributions....... 552
97‑10..................... Review............................................................................ 553
Subdivision 97‑B—Excess non‑concessional contributions determinations 553
Guide to Subdivision 97‑B                                                                                   553
97‑20..................... What this Subdivision is about....................................... 553
Operative provisions                                                                                            554
97‑25..................... Excess non‑concessional contributions determinations... 554
97‑30..................... Associated earnings........................................................ 554
97‑35..................... Review............................................................................ 555