Contents
Part I—Preliminary 1
1............................ Short title............................................................................ 1
2............................ Interpretation....................................................................... 1
2A......................... Application of the Criminal Code....................................... 3
2B.......................... Act binds the Crown........................................................... 4
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) 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 84
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....................... 127
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................... 138
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 140
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.................... 143
14ZZG................... Modification of section 38 of the AAT Act.................... 144
14ZZH................... Modification of section 41 of the AAT Act.................... 144
14ZZJ.................... Modification of section 43 of the AAT Act.................... 145
14ZZK................... Grounds of objection and burden of proof..................... 146
14ZZL................... Implementation of Tribunal decisions............................. 146
14ZZM.................. Pending review not to affect implementation of taxation decisions 146
Division 5—Court appeals against objection decisions 148
14ZZN................... Time limit for appeals..................................................... 148
14ZZO................... Grounds of objection and burden of proof..................... 148
14ZZP................... Order of court on objection decision............................... 148
14ZZQ................... Implementation of court order in respect of objection decision 148
14ZZR................... Pending appeal not to affect implementation of taxation decisions 149
14ZZS................... Transfer of certain proceedings to Federal Circuit and Family Court of Australia (Division 1) 149
Part IVD—Protection for whistleblowers 152
14ZZT................... Disclosures qualifying for protection under this Part...... 152
14ZZU................... Eligible whistleblowers................................................... 153
14ZZV................... Eligible recipients............................................................ 154
14ZZW.................. Confidentiality of whistleblower’s identity..................... 155
14ZZX................... Disclosure that qualifies for protection not actionable etc. 156
14ZZY................... Victimisation prohibited.................................................. 157
14ZZZ................... Compensation and other remedies—circumstances in which an order may be made 158
14ZZZAA............. Detriment........................................................................ 160
14ZZZA................ Compensation and other remedies—orders that may be made 161
14ZZZB................. Identifying information not to be disclosed etc. to courts or tribunals 163
14ZZZC................. Costs only if proceedings instituted vexatiously etc........ 163
14ZZZD................ Interaction between civil proceedings and criminal offences 164
14ZZZE................. Compensation for acquisition of property....................... 164
Part V—Miscellaneous 165
15.......................... Appearance by Commissioner etc................................... 165
15A....................... Certification by Commissioner of copies of, and extracts from, documents 166
15B........................ Recoverable advances..................................................... 168
15C........................ Recoverable payments.................................................... 169
15D....................... Reports about recoverable advances and recoverable payments 171
16.......................... Payments out of Consolidated Revenue Fund................ 173
16A....................... Regulations may provide for methods of payment of tax liabilities etc. 174
16B........................ Certain liabilities to be reduced to nearest multiple of 5 cents.. 175
17.......................... Powers of taxation officers in relation to references to currency etc. 175
17A....................... Powers of Federal Court and Federal Circuit and Family Court of Australia (Division 2) in respect of taxation matters............................................................................ 176
18.......................... Regulations..................................................................... 177
Schedule 1—Collection and recovery of income tax and other liabilities 178
Chapter 2—Collection, recovery and administration of income tax 178
Part 2‑1—Introduction to the Pay as you go (PAYG) system 178
Division 6—Guide to Parts 2‑5 and 2‑10 178
6‑1......................... What Parts 2‑5 and 2‑10 are about.................................. 178
6‑5......................... The Pay as you go (PAYG) system............................... 178
6‑10....................... How the amounts collected are dealt with....................... 179
Part 2‑5—Pay as you go (PAYG) withholding 180
Division 10—Guide to Part 2‑5 180
10‑1....................... What this Part is about.................................................... 180
10‑5....................... Summary of withholding payments................................ 180
Division 11—Preliminary matters 183
11‑1....................... Object of this Part........................................................... 183
11‑5....................... Constructive payment..................................................... 183
Division 12—Payments from which amounts must be withheld 185
Subdivision 12‑A—General rules 185
12‑1....................... General exceptions.......................................................... 186
12‑5....................... What to do if more than one provision requires a withholding 187
12‑7....................... Division does not apply to alienated personal services payments 189
12‑10..................... Division does not apply to non‑cash benefits................. 189
12‑20..................... Application of Division and regulations to non‑share dividends 189
Subdivision 12‑B—Payments for work and services 190
12‑35..................... Payment to employee...................................................... 190
12‑40..................... Payment to company director.......................................... 190
12‑45..................... Payment to office holder................................................. 190
12‑47..................... Payment to religious practitioners................................... 191
12‑50..................... Return to work payment................................................. 191
12‑55..................... Voluntary agreement to withhold.................................... 192
12‑60..................... Payment under labour hire arrangement, or specified by regulations 193
Subdivision 12‑C—Payments for retirement or because of termination of employment 194
12‑80..................... Superannuation income streams and annuities................ 194
12‑85..................... Superannuation lump sums and payments for termination of employment 194
12‑90..................... Unused leave payments.................................................. 194
Subdivision 12‑D—Benefit and compensation payments 194
12‑110................... Social Security or other benefit payment......................... 195
12‑115................... Commonwealth education or training payment............... 195
12‑120................... Compensation, sickness or accident payment................. 196
Subdivision 12‑E—Payments where TFN or ABN not quoted 196
Payment in respect of investment 197
12‑140................... Recipient does not quote tax file number........................ 197
12‑145................... Investor becoming presently entitled to income of a unit trust 198
12‑150................... Limited application of section 12‑140 to payment under financial arrangement 199
12‑152................... Limited application of section 12‑140 to payment covered by section 12A‑205 200
12‑155................... When investor may quote ABN as alternative................ 200
12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying 200
12‑165................... Exception for fully franked dividend.............................. 201
12‑170................... Exception for payments below thresholds set by regulations 201
Payment of income of closely held trust where TFN not quoted 201
12‑175................... Trustee distributes income of closely held trust.............. 201
12‑180................... Beneficiary becomes presently entitled to income of closely held trust 203
12‑185................... Exception for payments below thresholds set by regulations 204
Payment for a supply 205
12‑190................... Recipient does not quote ABN....................................... 205
Subdivision 12‑F—Dividend, interest and royalty payments 208
Dividends 209
12‑210................... Dividend payment to overseas person............................ 209
12‑215................... Dividend payment received for foreign resident............. 209
12‑220................... Application to part of a dividend..................................... 210
12‑225................... Application to distribution by a liquidator or other person 210
Interest 210
12‑245................... Interest payment to overseas person............................... 210
12‑250................... Interest payment received for foreign resident................ 211
12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 211
12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment 212
Royalties 212
12‑280................... Royalty payment to overseas person............................... 212
12‑285................... Royalty payment received for foreign resident................ 213
General 214
12‑300................... Limits on amount withheld under this Subdivision......... 214
Subdivision 12‑FA—Departing Australia superannuation payments 214
12‑305................... Departing Australia superannuation payment................. 214
12‑310................... Limits on amount withheld under this Subdivision......... 214
Subdivision 12‑FAA—Excess untaxed roll‑over amount 215
12‑312................... Untaxed roll‑over superannuation benefits..................... 215
12‑313................... Limits on amount withheld under this Subdivision......... 215
Subdivision 12‑FB—Payments to foreign residents etc. 216
12‑315................... Payment to foreign resident etc....................................... 216
12‑317................... Payment received for foreign resident etc....................... 217
12‑319................... Exemptions from withholding obligations under this Subdivision 218
Subdivision 12‑FC—Labour mobility programs 219
12‑319A................ Payment to employee...................................................... 220
Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources 220
Mining on Aboriginal land 220
12‑320................... Mining payment.............................................................. 220
Natural resources 221
12‑325................... Natural resource payment............................................... 221
12‑330................... Payer must ask Commissioner how much to withhold... 222
12‑335................... Commissioner may exempt from section 12‑330, subject to conditions 222
Subdivision 12‑H—Distributions of withholding MIT income 223
Guide to Subdivision 12‑H 223
12‑375................... What this Subdivision is about....................................... 223
Operative provisions 225
12‑383................... Meaning of withholding MIT.......................................... 225
12‑385................... Withholding by withholding MITs................................. 226
12‑390................... Withholding by custodians and other entities.................. 227
12‑395................... Requirement to give notice or make information available 230
12‑405................... Meaning of fund payment—general case........................ 233
12‑410................... Entity to whom payment is made.................................... 236
12‑415................... Failure to give notice or make information available: administrative penalty 236
12‑420................... Agency rules................................................................... 237
12‑425................... Meaning of clean building managed investment trust.... 237
12‑430................... Meaning of clean building.............................................. 238
12‑435................... Meaning of non‑concessional MIT income.................... 239
12‑436................... Meaning of asset entity, operating entity, cross staple arrangement and stapled entity 240
12‑437................... Meaning of MIT cross staple arrangement income....... 241
12‑438................... MIT cross staple arrangement income—de minimis exception 243
12‑439................... MIT cross staple arrangement income—approved economic infrastructure facility exception 245
12‑440................... Transitional—MIT cross staple arrangement income...... 246
12‑441................... Integrity rule—concessional cross staple rent cap........... 249
12‑442................... Meaning of excepted MIT CSA income........................... 250
12‑443................... Concessional cross staple rent cap—existing lease with specified rent or rent method 250
12‑444................... Concessional cross staple rent cap—general................... 251
12‑445................... Asset entity to allocate deductions first against rental income that is not MIT cross staple arrangement income........................................................................................ 253
12‑446................... Meaning of MIT trading trust income............................ 254
12‑447................... Transitional—MIT trading trust income......................... 255
12‑448................... Meaning of MIT agricultural income, Australian agricultural land for rent and Division 6C land 256
12‑449................... Transitional—MIT agricultural income........................... 257
12‑450................... Meaning of MIT residential housing income.................. 258
12‑451................... Transitional—MIT residential housing income............... 259
12‑452................... Meaning of residential dwelling asset............................ 261
12‑453................... MIT agricultural income and MIT residential housing income—capital gains in relation to membership interests........................................................................... 261
Subdivision 12‑J—FHSS released amounts 263
12‑460................... FHSS released amounts.................................................. 263
Division 12A—Distributions by AMITs (including deemed payments) 264
Guide to Division 12A 264
12A‑1.................... What this Division is about............................................. 264
Subdivision 12A‑A—Distributions by AMITs relating to dividend, interest and royalties 265
Guide to Subdivision 12A‑A 265
12A‑5.................... What this Subdivision is about....................................... 265
Operative provisions 265
12A‑10.................. Deemed payments—no obligation to withhold under Subdivision 12‑F (dividend, interest and royalty payments)....................................................................... 265
12A‑15.................. Dividend, interest or royalty payments relating to AMIT—requirement to give notice or make information available.......................................................................... 266
12A‑20.................. Failure to give notice or make information available under section 12A‑15: administrative penalty 269
12A‑25.................. Meaning of AMIT DIR payment..................................... 269
12A‑30.................. Meaning of AMIT dividend payment.............................. 270
12A‑35.................. Meaning of AMIT interest payment................................ 271
12A‑40.................. Meaning of AMIT royalty payment................................. 272
Subdivision 12A‑B—Distributions by AMITs relating to Subdivision 12‑H fund payments 273
Guide to Subdivision 12A‑B 273
12A‑100................ What this Subdivision is about....................................... 273
Operative provisions 273
12A‑105................ Deemed payments—no obligation to withhold under Subdivision 12‑H 273
12A‑110................ Meaning of fund payment—AMITs............................... 274
Subdivision 12A‑C—Deemed payments by AMITs etc. 278
Guide to Subdivision 12A‑C 278
12A‑200................ What this Subdivision is about....................................... 278
Operative provisions 279
12A‑205................ Issue of AMMA statement etc. deemed to be payment... 279
12A‑210................ Post‑AMMA actual payment and pre‑AMMA actual payment in respect of deemed payment 281
12A‑215................ AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc. 282
12A‑220................ Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc. 283
Division 13—Alienated personal services payments 286
13‑1....................... Object of this Division.................................................... 286
13‑5....................... Payment to the Commissioner in respect of alienated personal services payments 286
13‑10..................... Alienated personal services payments............................. 289
13‑15..................... Personal services payment remitters............................... 290
13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01 291
Division 14—Benefits, gains and taxable supplies for which amounts must be paid to the Commissioner 292
Subdivision 14‑A—Non‑cash benefits 292
14‑1....................... Object of this Subdivision.............................................. 292
14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding..................................................................... 292
14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit 293
14‑15..................... Payer can recover amount paid to the Commissioner...... 294
Subdivision 14‑B—Accruing gains 294
14‑50..................... Object of this Subdivision.............................................. 294
14‑55..................... Liability for TFN withholding tax................................... 295
14‑60..................... Investment body may recover TFN withholding tax from investor 296
14‑65..................... Application of rules in Division 18................................. 296
14‑75..................... Overpayment of TFN withholding tax............................ 297
14‑85..................... Other laws do not exempt from TFN withholding tax.... 297
Subdivision 14‑C—Shares and rights under employee share schemes 298
14‑155................... Liability for TFN withholding tax (ESS)........................ 298
14‑160................... Employer may give individual tax file numbers to provider 299
14‑165................... Provider may recover TFN withholding tax (ESS) from individual 299
14‑170................... Application of rules in Division 18................................. 300
14‑175................... Overpayment of TFN withholding tax (ESS)................. 300
14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997 300
Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property 301
14‑200................... Certain acquisitions of taxable Australian property from foreign residents 301
14‑205................... Effect of look‑through earnout rights.............................. 302
14‑210................... Whether an entity is a relevant foreign resident............... 303
14‑215................... Excluded transactions..................................................... 305
14‑220................... Commissioner clearance certificates................................ 307
14‑225................... Entity declarations........................................................... 307
14‑230................... Administrative penalties for false or misleading declarations 308
14‑235................... Varying amounts to be paid to the Commissioner.......... 309
Subdivision 14‑E—GST payable on taxable supplies of certain real property 310
14‑250................... Recipients of certain taxable supplies of real property must pay amounts to Commissioner 311
14‑255................... Notification by suppliers of residential premises etc....... 313
Division 15—Working out the amount to withhold 316
Guide to Division 15 316
15‑1....................... What this Division is about............................................. 316
Subdivision 15‑A—Working out how much to withhold 316
15‑10..................... How much to withhold................................................... 317
15‑15..................... Variation of amounts required to be withheld................. 317
Subdivision 15‑B—Withholding schedules and regulations 318
15‑25..................... Commissioner’s power to make withholding schedules. 318
15‑30..................... Matters to be considered when making withholding schedules 319
15‑35..................... Regulations about withholding....................................... 320
Subdivision 15‑C—Declarations 321
15‑50..................... Declarations.................................................................... 321
Division 16—Payer’s obligations and rights 323
Guide to Division 16 323
16‑1....................... What this Division is about............................................. 323
Subdivision 16‑A—To withhold 323
When to withhold 324
16‑5....................... When to withhold an amount.......................................... 324
16‑7....................... Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12 324
16‑20..................... Payer discharged from liability to recipient for amount withheld 325
Penalties for not withholding 325
16‑25..................... Failure to withhold: offence............................................ 325
16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 326
16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty............................ 327
16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment.............................................. 328
16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.......................................................... 328
Subdivision 16‑B—To pay withheld amounts to the Commissioner 329
When and how to pay amounts to the Commissioner 329
16‑70..................... Entity to pay amounts to Commissioner......................... 329
16‑75..................... When amounts must be paid to Commissioner............... 330
16‑80..................... Penalty for failure to pay within time.............................. 332
16‑85..................... How amounts are to be paid........................................... 332
Who is a large, medium or small withholder 333
16‑95..................... Meaning of large withholder.......................................... 333
16‑100................... Meaning of medium withholder...................................... 334
16‑105................... Meaning of small withholder.......................................... 334
16‑110................... Commissioner may vary withholder’s status downwards 334
16‑115................... Commissioner may vary withholder’s status upwards... 335
Subdivision 16‑BA—To be registered 336
Registration of withholders 337
16‑140................... Withholders must be registered....................................... 337
16‑141................... Registration and cancellation........................................... 338
Branch registration 338
16‑142................... Branches may be registered............................................ 338
16‑143................... Separate amounts for entities and branches..................... 339
16‑144................... Cancellation of branch registration.................................. 339
16‑145................... Effect on branches of cancelling the entity’s registration 339
Registration of employers of working holiday makers 340
16‑146................... Employers of working holiday makers must be registered 340
16‑147................... Registering employers of working holiday makers......... 340
16‑148................... Cancelling the registration of employers of working holiday makers 342
Subdivision 16‑C—To provide information 344
To the Commissioner 344
16‑150................... Commissioner must be notified of amounts.................... 344
16‑152................... Annual reports—Withholding payments covered by section 12‑175 345
16‑153................... Annual reports—other payments.................................... 346
To recipients of withholding payments 349
16‑155................... Annual payment summary.............................................. 349
16‑156................... Annual payment summary for sections 12‑175 and 12‑180 351
16‑157................... Payment summary for Subdivision 12‑H....................... 351
16‑160................... Part‑year payment summary........................................... 352
16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment 353
16‑166................... Payment summary for a departing Australia superannuation payment 354
16‑167................... Payment summary for payment to recipient who does not quote ABN 354
16‑170................... Form and content of payment summary.......................... 355
16‑175................... Penalty for not providing payment summary.................. 356
16‑180................... Commissioner may exempt entity from giving payment summary 357
16‑182................... Definition of reportable employer superannuation contribution 357
Subdivision 16‑D—Additional rights and obligations of entity that makes a payment 358
16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes 358
Division 18—Recipient’s entitlements and obligations 360
Subdivision 18‑A—Crediting withheld amounts 360
Guide to Subdivision 18‑A 360
18‑1....................... What this Subdivision is about....................................... 360
General exception 362
18‑5....................... No credit for refunded amount........................................ 362
Entitlement to credits: income tax liability 362
18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 362
18‑15..................... Tax credit for recipient of withholding payments............ 363
18‑20..................... Tax credit where recipient is a partnership...................... 363
18‑25..................... Tax credit where recipient is a trust................................. 364
18‑27..................... Tax credit for alienated personal services payments........ 366
Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or labour mobility program 366
18‑30..................... Credit: dividend, interest or royalty................................. 366
18‑32..................... Credit: amount attributable to fund payment................... 367
18‑33..................... Credit: labour mobility programs.................................... 368
18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge 368
18‑40..................... Credit: liability under Part 4‑25....................................... 370
Entitlement to credit: departing Australia superannuation payment 372
18‑42..................... Credit—departing Australia superannuation payment..... 372
Entitlement to credit: mining payment 373
18‑45..................... Credit—mining payment................................................. 373
Entitlement to credit: Petroleum resource rent tax 374
18‑55..................... Credit—Natural resource payments................................ 374
Entitlement to credit: taxable supply of real property 374
18‑60..................... Credit—payment relating to taxable supply of real property 374
Subdivision 18‑B—Refund of certain withheld amounts 375
18‑65..................... Refund of withheld amounts by the payer to the recipient 375
18‑70..................... Refund of withheld amounts by the Commissioner to the recipient 378
18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment 380
18‑85..................... Refund by Commissioner of amount withheld from payment in respect of supply of real property 381
Subdivision 18‑C—Recipient’s obligations 381
18‑100................... Obligation to keep payment summary............................. 381
Subdivision 18‑D—Directors etc. of non‑complying companies 382
Object of Subdivision 383
18‑120................... Object of Subdivision..................................................... 383
PAYG withholding non‑compliance tax 383
18‑125................... Directors of non‑complying companies.......................... 383
18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances 385
18‑135................... Associates of directors of non‑complying companies..... 387
18‑140................... Notices............................................................................ 390
18‑145................... When PAYG withholding non‑compliance tax must be paid.. 392
18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax 392
18‑155................... Validity of decisions and evidence.................................. 393
18‑160................... Rights of indemnity and contribution.............................. 393
Credits for later compliance 394
18‑165................... Credits for later compliance—scope............................... 394
18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances 395
18‑175................... Credits for later compliance—Commissioner may give notice 396
18‑180................... Effect of earlier credits.................................................... 397
Other provisions 398
18‑185................... When Commissioner may give notice............................. 398
18‑190................... Review of decisions........................................................ 399
Division 20—Other matters 400
Subdivision 20‑B—Offences 400
20‑35..................... Offences......................................................................... 400
20‑40..................... Joining of charges........................................................... 401
20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company 402
Subdivision 20‑D—Review of decisions 403
20‑80..................... Reviewable decisions...................................................... 403
Division 21—Entitlements relating to insolvent ADIs and general insurers 405
Guide to Division 21 405
21‑1....................... What this Division is about............................................. 405
Subdivision 21‑A—Treatment of some payments by APRA 405
21‑5....................... APRA treated like ADI or general insurance company.. 405
Part 2‑10—Pay as you go (PAYG) instalments 407
Division 45—Instalment payments 407
Guide to Division 45 408
45‑1....................... What this Division is about............................................. 408
Subdivision 45‑A—Basic rules 409
45‑5....................... Object of this Part........................................................... 409
45‑10..................... Application of Part.......................................................... 411
45‑15..................... Liability for instalments.................................................. 411
45‑20..................... Information to be given to the Commissioner by certain payers 412
45‑25..................... Penalty for failure to notify Commissioner..................... 413
45‑30..................... Credit for instalments payable......................................... 413
Subdivision 45‑B—When instalments are due 414
45‑50..................... Liability to pay instalments............................................. 414
45‑60..................... Meaning of instalment quarter....................................... 415
45‑61..................... When quarterly instalments are due—payers of quarterly instalments 416
45‑65..................... Meaning of instalment month......................................... 417
45‑67..................... When monthly instalments are due—payers of monthly instalments 417
45‑70..................... When annual instalments are due.................................... 418
45‑72..................... Means of payment of instalment..................................... 418
45‑75..................... Instalments recoverable in same way as income tax........ 418
45‑80..................... General interest charge on late payment.......................... 418
45‑90..................... Commissioner may withdraw instalment rate................. 418
Subdivision 45‑C—Working out instalment amounts 419
45‑110................... How to work out amount of quarterly instalment on instalment income basis 419
45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax 420
45‑114................... How to work out amount of monthly instalment............ 421
45‑115................... How to work out amount of annual instalment............... 422
45‑120................... Meaning of instalment income........................................ 423
Subdivision 45‑D—Quarterly payers 427
45‑125................... Quarterly payer who pays instalments on the basis of instalment income 427
45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax 429
45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 432
45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 433
Subdivision 45‑DA—Monthly payers 434
45‑136................... Monthly payer................................................................ 434
45‑138................... Monthly payer requirement............................................. 435
Subdivision 45‑E—Annual payers 437
When you start and stop being an annual payer 437
45‑140................... Choosing to pay annual instalments................................ 437
45‑145................... Meaning of instalment group......................................... 439
45‑150................... Entity stops being annual payer if involved with GST registration or instalment group 439
45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly 440
45‑160................... Head company of a consolidated group stops being annual payer 441
Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income 442
45‑200................... Application..................................................................... 442
45‑205................... Choosing a varied instalment rate................................... 442
45‑210................... Notifying Commissioner of varied instalment rate.......... 443
45‑215................... Credit on using varied rate in certain cases..................... 443
Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low 444
45‑225................... Effect of Subdivision in relation to monthly payers........ 445
45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate 445
45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax........................................................................................ 447
45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment 455
45‑235................... Liability to GIC on shortfall in annual instalment........... 456
45‑240................... Commissioner may remit general interest charge............ 458
Subdivision 45‑H—Partnership income 458
45‑260................... Instalment income for a period in which you are in a partnership 458
Subdivision 45‑I—Trust income included in instalment income of beneficiary 459
45‑280................... Instalment income for a period in which you are a beneficiary of a trust 460
45‑285................... Instalment income includes distributions by certain resident unit trusts 462
45‑286................... Instalment income includes distributions by certain managed investment trusts 464
45‑287................... When trusts are disqualified due to concentrated ownership 464
45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled 466
45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income 467
Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax 467
45‑320................... Working out instalment rate............................................ 467
45‑325................... Working out your notional tax........................................ 468
45‑330................... Working out your adjusted taxable income.................... 470
45‑335................... Working out your adjusted withholding income............. 472
45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income 472
Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax 475
45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax 475
45‑360................... How Commissioner works out benchmark instalment rate 476
45‑365................... Working out your benchmark tax................................... 476
45‑370................... Working out your adjusted assessed taxable income for the variation year 477
45‑375................... Adjusted assessed tax on adjusted assessed taxable income 478
Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax 480
45‑400................... Working out amount of instalment—payers of 4 quarterly instalments 481
45‑402................... Working out amount of instalment—payers of 2 quarterly instalments 482
45‑405................... Working out your GDP‑adjusted notional tax................ 484
Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax 487
45‑410................... Working out amount of instalment—payers of 4 quarterly instalments 487
45‑412................... Working out amount of instalment—payers of 2 quarterly instalments 489
45‑415................... Estimating your benchmark tax....................................... 491
45‑420................... Credit in certain cases where amount of instalment is nil 492
Subdivision 45‑N—How this Part applies to the trustee of a trust 492
Trustees to whom this Part applies 493
45‑450................... Trustees to whom a single instalment rate is given......... 493
45‑455................... Trustees to whom several instalment rates are given....... 493
45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 494
45‑465................... Meaning of instalment income........................................ 495
45‑468................... Multi‑rate trustee may pay quarterly instalments............. 495
How Commissioner works out instalment rate and notional tax for a multi‑rate trustee 495
45‑470................... Working out instalment rate............................................ 495
45‑473................... Commissioner must notify you of notional tax............... 496
45‑475................... Working out your notional tax........................................ 496
45‑480................... Working out your adjusted taxable income.................... 497
45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share 498
45‑485................... Working out your adjusted withholding income............. 498
How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee 499
45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax 499
45‑530................... How Commissioner works out benchmark instalment rate 499
45‑535................... Working out your benchmark tax................................... 500
Subdivision 45‑P—Anti‑avoidance rules 500
45‑595................... Object of this Subdivision.............................................. 501
45‑597................... Effect of Subdivision in relation to instalment months.... 501
45‑600................... General interest charge on tax benefit relating to instalments 501
45‑605................... When do you get a tax benefit from a scheme?............... 503
45‑610................... What is your tax position for an income year?................ 504
45‑615................... What is your hypothetical tax position for an income year? 506
45‑620................... Amount on which GIC is payable, and period for which it is payable 506
45‑625................... Credit if you also got a tax detriment from the scheme... 507
45‑630................... When do you get a tax detriment from a scheme?........... 508
45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides 509
45‑640................... Commissioner may remit general interest charge in special cases 511
Subdivision 45‑Q—General rules for consolidated groups 511
Guide to Subdivision 45‑Q 511
45‑700................... What this Subdivision is about....................................... 511
Application of Subdivision 512
45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers 512
45‑705................... Application of Subdivision to head company................. 513
Usual operation of this Part for consolidated group members 518
45‑710................... Single entity rule............................................................. 518
45‑715................... When instalments are due—modification of section 45‑61 518
45‑720................... Head company cannot be an annual payer—modification of section 45‑140 519
Membership changes 519
45‑740................... Change of head company................................................ 519
45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group) 522
45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group) 523
45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax 524
Subdivision 45‑R—Special rules for consolidated groups 526
Guide to Subdivision 45‑R 526
45‑850................... What this Subdivision is about....................................... 526
Operative provisions 527
45‑855................... Section 701‑1 disregarded for certain purposes.............. 527
45‑860................... Member having a different instalment period.................. 527
45‑865................... Credit rule....................................................................... 529
45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment 530
45‑875................... Other rules about the general interest charge................... 533
45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group 534
45‑885................... Early application of Subdivision 45‑Q to the head company of a new group 536
Subdivision 45‑S—MEC groups 538
Guide to Subdivision 45‑S 538
45‑900................... What this Subdivision is about....................................... 538
Preliminary 539
45‑905................... Objects of Subdivision................................................... 539
General modification rules 539
45‑910................... Extended operation of Part to cover MEC groups.......... 539
Extended operation of Subdivision 45‑Q 540
45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups 540
45‑915................... Application of Subdivision 45‑Q to provisional head company 540
45‑917................... Assumption for applying section 45‑710 (single entity rule) 544
45‑920................... Change of provisional head company............................. 545
45‑922................... Life insurance company.................................................. 548
Extended operation of Subdivision 45‑R 548
45‑925................... Additional modifications of sections 45‑855 and 45‑860 548
45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision 548
45‑935................... Additional modifications of section 45‑885.................... 549
Part 2‑15—Returns and assessments 550
Division 70—Tax receipts 550
Guide to Division 70 550
70‑1....................... What this Division is about............................................. 550
Subdivision 70‑A—Tax receipts 550
70‑5....................... Tax receipt to be provided to certain individual taxpayers 551
Part 2‑30—Collecting Medicare levy with income tax 553
Division 90—Medicare levy and Medicare levy surcharge 553
Subdivision 90‑A—Treatment like income tax 553
90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 553
Part 2‑35—Excess superannuation contributions 554
Division 97—Excess contributions determinations 554
Subdivision 97‑A—Excess concessional contributions determinations