Federal Register of Legislation - Australian Government

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Withholding Tax Instruments as made
This instrument ensures that the amount of withholding which is collected under Subdivision 14-D of the TAA, when the relevant asset is acquired from multiple entities, including both Australian and foreign residents, is reduced to reflect only the foreign resident entities’ entitlement to the proceeds. This instrument avoids unnecessary withholding from Australian resident entities.
Administered by: Treasury
Registered 30 Jun 2016
Tabling HistoryDate
Tabled HR30-Aug-2016
Tabled Senate30-Aug-2016

Legislative Instrument

 

PAYG Withholding variation for foreign resident capital gains withholding payments – acquisitions from multiple entities

 

I, Steve Vesperman, Deputy Commissioner of Taxation, make this variation under subsection 14-235(5) of Schedule 1 to the Taxation Administration Act 1953.

 

 

 

Deputy Commissioner of Taxation

Dated: 29 June 2016

 

 

1.            Name of instrument

This determination is the PAYG Withholding variation for foreign resident capital gains withholding payments – acquisitions from multiple entities.

2.            Commencement

This instrument commences 1 July 2016.

3.            Application

This instrument applies to payments covered by sections 14-200 and 14-205 of Schedule 1 to the Taxation Administration Act 1953, where the relevant CGT asset is acquired from more than one entity and at least one, but not all, of those entities have provided:

(i)     a clearance certificate issued by the Commissioner of Taxation under section 14-220 of Schedule 1 to the Taxation Administration Act 1953,

(ii)    a declaration under section 14-225 of Schedule 1 to the Taxation Administration Act 1953, or

(iii)   a notice of variation granted by the Commissioner under subsection 14-235(2) of Schedule 1 to the Taxation Administration Act 1953.

4.            Determination

The amount to be paid to the Commissioner in relation to transactions covered by this instrument is varied as follows:

For each entity that has not provided a clearance certificate, declaration or notice of variation, withhold an amount equal to the amount which would be required to be paid to the Commissioner under subsection 14-200(3) or subsection 14-205(4) of Schedule 1 to the Taxation Administration Act 1953, multiplied by the entity’s percentage interest in the relevant CGT asset.

 

For each entity that has provided a notice of variation, the varied amount stated on the notice of variation.

For each entity that has provided a valid clearance certificate or declaration, no withholding is required.

5.            Definitions

Where individuals own the relevant asset as joint tenants, their percentage interests are as defined in section 108-7 of the Income Tax Assessment Act 1997.

Other terms used in this legislative instrument have the same meaning as defined in the:

 

· Income Tax Assessment Act 1997, or

· Taxation Administration Act 1953