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Taxation Administration Act 1953

Authoritative Version
  • - C2017C00290
  • In force - Superseded Version
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Act No. 1 of 1953 as amended, taking into account amendments up to Petroleum and Other Fuels Reporting (Consequential Amendments and Transitional Provisions) Act 2017
An Act to provide for the administration of certain Acts relating to Taxation, and for purposes connected therewith
Administered by: Treasury
General Comments: Sections 18-15, 18-20 and 18-25 of Schedule 1 of this Act have been modified by the operation of the Commissioner’s Remedial Power, click here to see the modification
Registered 15 Sep 2017
Start Date 24 Aug 2017
End Date 14 Dec 2017

Taxation Administration Act 1953

No. 1, 1953

Compilation No. 149

Compilation date:                              24 August 2017

Includes amendments up to:            Act No. 91, 2017

Registered:                                         15 September 2017

This compilation is in 3 volumes

Volume 1:       sections 1–18

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

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

Volume 3:       Endnotes

Each volume has its own contents

 

About this compilation

This compilation

This is a compilation of the Taxation Administration Act 1953 that shows the text of the law as amended and in force on 24 August 2017 (the compilation date).

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

Uncommenced amendments

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

Application, saving and transitional provisions for provisions and amendments

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

Editorial changes

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

Modifications

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

Self‑repealing provisions

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

  

  

  


Contents

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............................................................................................ 7

3CA....................... Reporting of information by significant global entities....... 8

3E.......................... Reporting of information about entity with PRRT payable 10

Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation                                                                                                                  11

4............................ Commissioner and Second Commissioners of Taxation... 11

4A......................... Statutory Agency etc. for purposes of Public Service Act 11

5............................ Tenure of Commissioner and Second Commissioners..... 11

5A......................... Remuneration and allowances of Commissioner and Second Commissioners         11

6............................ Leave of absence............................................................... 12

6A......................... Resignation....................................................................... 12

6B.......................... Acting appointments......................................................... 12

6C.......................... Suspension and removal from office of Commissioner or Second Commissioner  13

6D......................... Powers of Second Commissioner..................................... 15

7............................ Deputy Commissioners of Taxation................................. 15

8............................ Delegation......................................................................... 16

Part IIA—The general interest charge                                                                   17

8AAA................... Overview.......................................................................... 17

8AAB.................... When the general interest charge applies........................... 17

8AAC.................... Amount of the general interest charge............................... 23

8AAD................... What is the general interest charge rate?......................... 23

8AAE.................... When the charge is due and payable................................. 24

8AAF.................... Notification by Commissioner.......................................... 24

8AAG................... Remission of the charge.................................................... 25

8AAGA................ Rounding of the charge..................................................... 26

8AAH................... Judgment for payment of an unpaid amount..................... 26

Part IIB—Running balance accounts, application of payments and credits, and related matters          27

Division 1—Preliminary                                                                                            27

8AAZA................. Definitions........................................................................ 27

8AAZB................. Trustee to be treated as separate entity for each capacity... 29

Division 2—Running Balance Accounts (or RBAs)                                    30

8AAZC................. Establishment of RBAs.................................................... 30

8AAZD................. Allocation of tax debts to RBAs....................................... 30

8AAZF.................. General interest charge on RBA deficit debt..................... 31

8AAZG................. RBA statements................................................................ 31

8AAZH................. Liability for RBA deficit debt........................................... 31

8AAZI................... RBA statement to be evidence.......................................... 32

8AAZJ.................. Evidentiary certificate about RBA transactions etc............ 32

Division 3—Treatment of payments, credits and RBA surpluses       34

8AAZL.................. Amounts covered by this Division................................... 34

8AAZLA............... Method 1—allocating the amount first to an RBA............ 35

8AAZLB............... Method 2—applying the amount first against a non‑RBA tax debt          35

8AAZLC............... RBA surplus and related credits must remain equivalent if one or the other is applied            36

8AAZLD............... Special priority credits...................................................... 36

8AAZLE............... Instructions to Commissioner not binding........................ 37

Division 3A—Refunds of RBA surpluses and credits                                38

8AAZLF............... Commissioner must refund RBA surpluses and credits... 38

8AAZLG............... Retaining refunds until information or notification given.. 39

8AAZLGA............ Retaining refunds while Commissioner verifies information 39

8AAZLGB............ Retaining refunds until notification under Division 389 or ascertainment of liability               42

8AAZLH............... How refunds are made...................................................... 44

Division 4—Miscellaneous provisions about tax debts                             45

8AAZM................ When payments are treated as received............................. 45

8AAZMA............. Electronic payment of tax debts........................................ 45

8AAZMB.............. Saturdays, Sundays and public holidays........................... 45

8AAZN................. Overpayments made by the Commissioner under taxation laws              46

Part III—Prosecutions and offences                                                                        47

Division 1—Preliminary                                                                                            47

8A......................... Interpretation..................................................................... 47

8AB....................... Application of Part to the Development Allowance Authority Act 1992    48

8AC....................... Application of Part to the Tax Agent Services Act 2009.... 49

Division 2—Offences                                                                                                   50

Subdivision A—Failure to comply with taxation requirements                   50

8B.......................... Interpretation..................................................................... 50

8C.......................... Failure to comply with requirements under taxation law... 51

8D......................... Failure to answer questions when attending before the Commissioner etc.              52

8E.......................... Penalties for failure to comply with requirements under taxation law      52

8F.......................... Election to treat offence otherwise than as prescribed taxation offence    53

8G......................... Order to comply with requirement.................................... 53

8H......................... Penalty for failure to comply with order to comply........... 54

8HA...................... Court may order payment of amount in addition to penalty 55

Subdivision B—Offences relating to statements, records and certain other Acts          55

8J........................... Interpretation..................................................................... 55

8K.......................... False or misleading statements.......................................... 62

8L.......................... Incorrectly keeping records etc......................................... 63

8M......................... Penalties for offences against subsections 8K(1) and (1B) and 8L(1) and (1A)      64

8N......................... Recklessly making false or misleading statements............ 65

8Q......................... Recklessly incorrectly keeping records etc........................ 66

8R.......................... Penalties for offences against sections 8N and 8Q........... 67

8S.......................... Election to treat offence otherwise than as prescribed taxation offence    67

8T.......................... Incorrectly keeping records with intention of deceiving or misleading etc.              67

8U......................... Falsifying or concealing identity with intention of deceiving or misleading etc.       68

8V......................... Penalties for offences against sections 8T and 8U............ 69

8W......................... Court may order payment of amount in addition to penalty 70

Subdivision BA—Offences relating to tax file numbers                                73

8WA...................... Unauthorised requirement etc. that tax file number be quoted  73

8WB...................... Unauthorised recording etc. of tax file number................. 75

8WC...................... Conducting affairs so as to avoid tax file number requirements               76

Subdivision C—Miscellaneous                                                                              77

8XA...................... Unauthorised access to taxation records........................... 77

8Y......................... Liability of officers etc. of corporations............................ 77

8Z.......................... Evidentiary certificate relating to previous convictions..... 78

Division 3—Prosecution of taxation offences                                                80

8ZA....................... Prosecution of taxation offences....................................... 80

8ZB....................... Prosecution may be commenced at any time..................... 81

8ZC....................... Place where offence committed......................................... 81

8ZD....................... Conduct by employees or agents of corporations............. 82

8ZE........................ Civil penalty not payable if prosecution instituted............. 82

8ZF........................ Penalties for corporations................................................. 83

8ZG....................... Enforcement of orders for payment.................................. 83

8ZH....................... Penalties not to relieve from tax........................................ 84

Division 4—Prescribed taxation offences                                                        85

8ZJ........................ Prosecution of prescribed taxation offences...................... 85

8ZK....................... Protection of witnesses..................................................... 86

8ZL........................ Averment.......................................................................... 87

8ZM...................... Evidence of authority to institute proceedings................... 87

8ZN....................... Costs................................................................................. 88

Division 5—Service of summons for prescribed taxation offences    89

9............................ Interpretation..................................................................... 89

10.......................... Service of summons by post............................................. 89

11.......................... Notice of conviction in absentia....................................... 90

12.......................... Notice of intention to issue warrant in default of payment 90

13.......................... Limitation of action to enforce payment of fine................. 91

13A....................... Setting aside of conviction or order.................................. 91

13B........................ Proof of service of summons or notice............................. 94

13C........................ Application of other laws.................................................. 94

Division 6—Setting aside etc. of conviction or order on application of Commissioner                95

13CA..................... Setting aside etc. of conviction or order on application of Commissioner                95

Part IIIA—Co‑operation between Commonwealth and State taxation authorities          97

Division 1—Interpretation                                                                                       97

13D....................... Interpretation..................................................................... 97

Division 2—Trans‑border investigations                                                         99

13E........................ State taxation officers may refer matters to Commissioner for investigation            99

13F........................ Access to documents etc................................................... 99

13G....................... Commissioner may obtain information and evidence...... 100

Division 4—Certification by State taxation officer of copies of, and extracts from, documents             101

13K........................ Certification by State taxation officer of copies of, and extracts from, documents   101

Division 5—Australian Taxation Office may perform functions under State/Territory debits tax laws                                                                                                                    104

13L........................ Australian Taxation Office may perform functions under State/Territory debits tax laws        104

Part IVA—Departure from Australia of certain tax debtors                 106

Division 1—Interpretation                                                                                     106

14Q....................... Interpretation................................................................... 106

Division 2—Prohibition and authorisation of departure of certain tax debtors               107

14R........................ Departure from Australia of certain tax debtors prohibited 107

14S........................ Departure prohibition orders........................................... 107

14T........................ Revocation and variation of departure prohibition orders 108

14U....................... Departure authorisation certificates................................. 110

Division 3—Appeals from, and review of, decisions of the Commissioner          112

14V....................... Appeals to courts against making of departure prohibition orders           112

14W....................... Jurisdiction of courts...................................................... 112

14X....................... Orders of court on appeal............................................... 112

14Y....................... Applications for review of certain decisions................... 113

Division 4—Enforcement                                                                                        114

14Z........................ Powers of authorised officers......................................... 114

14ZA..................... Certain tax debtors to produce authority to depart etc..... 115

Part IVC—Taxation objections, reviews and appeals                                 116

Division 1—Introduction                                                                                        116

14ZL...................... Part applies to taxation objections................................... 116

14ZM.................... Division 2—Interpretive................................................. 116

14ZN..................... Division 3—Taxation objections.................................... 116

14ZO..................... Division 4—Tribunal review.......................................... 116

14ZP...................... Division 5—Federal Court appeals................................. 116

Division 2—Interpretive provisions                                                                  117

14ZQ..................... General interpretation provisions.................................... 117

14ZR..................... Taxation decisions covered by single notice to be treated as single decision            118

14ZS...................... Ineligible income tax remission decisions....................... 119

Division 3—Taxation objections                                                                         120

14ZU..................... How taxation objections are to be made.......................... 120

14ZV..................... Limited objection rights in the case of certain amended taxation decisions               120

14ZVA.................. Limited objection rights because of other objections....... 120

14ZVB.................. Objections relating to excess concessional contributions 121

14ZVC.................. Objections relating to non‑concessional contributions.... 122

14ZW.................... When taxation objections are to be made........................ 123

14ZX..................... Commissioner to consider applications for extension of time  129

14ZY..................... Commissioner to decide taxation objections................... 129

14ZYA.................. Person may require Commissioner to make an objection decision           130

14ZYB.................. Requiring Commissioner to make a private ruling.......... 131

14ZZ...................... Person may seek review of, or appeal against, Commissioner’s decision                131

Division 4—AAT review of objection decisions and extension of time refusal decisions             133

14ZZA................... Modified AAT Act to apply........................................... 133

14ZZB................... Sections 27, 28, 41 and 44A of the AAT Act not to apply to certain decisions       133

14ZZC................... Modification of section 29 of the AAT Act.................... 133

14ZZD................... Modification of section 30 of the AAT Act.................... 134

14ZZE................... Hearings before Tribunal to be held in private if applicant so requests    134

14ZZF................... Modification of section 37 of the AAT Act.................... 134

14ZZG................... Modification of section 38 of the AAT Act.................... 136

14ZZJ.................... Modification of section 43 of the AAT Act.................... 136

14ZZK................... Grounds of objection and burden of proof..................... 137

14ZZL................... Implementation of Tribunal decisions............................. 137

14ZZM.................. Pending review not to affect implementation of taxation decisions          137

Division 5—Court appeals against objection decisions                          138

14ZZN................... Time limit for appeals..................................................... 138

14ZZO................... Grounds of objection and burden of proof..................... 138

14ZZP................... Order of court on objection decision............................... 138

14ZZQ................... Implementation of court order in respect of objection decision                138

14ZZR................... Pending appeal not to affect implementation of taxation decisions           139

14ZZS................... Transfer of certain proceedings to Family Court............. 139

Part V—Miscellaneous                                                                                                    142

15.......................... Appearance by Commissioner etc................................... 142

15A....................... Certification by Commissioner of copies of, and extracts from, documents             143

15B........................ Recoverable advances..................................................... 145

15C........................ Recoverable payments.................................................... 147

15D....................... Reports about recoverable advances and recoverable payments               148

16.......................... Payments out of Consolidated Revenue Fund................ 150

16A....................... Regulations may provide for methods of payment of tax liabilities etc.    151

16B........................ Certain liabilities to be reduced to nearest multiple of 5 cents.. 152

17.......................... Powers of taxation officers in relation to references to currency etc.        152

17A....................... Powers of Federal Court and Federal Circuit Court in respect of taxation matters   153

18.......................... Regulations..................................................................... 154

Schedule 1—Collection and recovery of income tax and other liabilities               155

Chapter 2—Collection, recovery and administration of income tax  155

Part 2‑1—Introduction to the Pay as you go (PAYG) system            155

Division 6Guide to Parts 2‑5 and 2‑10                                                          155

6‑1......................... What Parts 2‑5 and 2‑10 are about.................................. 155

6‑5......................... The Pay as you go (PAYG) system............................... 155

6‑10....................... How the amounts collected are dealt with....................... 156

Part 2‑5—Pay as you go (PAYG) withholding                                           157

Division 10Guide to Part 2‑5                                                                           157

10‑1....................... What this Part is about.................................................... 157

10‑5....................... Summary of withholding payments................................ 157

Division 11—Preliminary matters                                                                    160

11‑1....................... Object of this Part........................................................... 160

11‑5....................... Constructive payment..................................................... 160

Division 12—Payments from which amounts must be withheld                 162

Subdivision 12‑A—General rules                                                                       162

12‑1....................... General exceptions.......................................................... 162

12‑5....................... What to do if more than one provision requires a withholding 164

12‑7....................... Division does not apply to alienated personal services payments             165

12‑10..................... Division does not apply to non‑cash benefits................. 166

12‑20..................... Application of Division and regulations to non‑share dividends              166

Subdivision 12‑B—Payments for work and services                                    166

12‑35..................... Payment to employee...................................................... 167

12‑40..................... Payment to company director.......................................... 167

12‑45..................... Payment to office holder................................................. 167

12‑47..................... Payment to religious practitioners................................... 168

12‑50..................... Return to work payment................................................. 168

12‑55..................... Voluntary agreement to withhold.................................... 168

12‑60..................... Payment under labour hire arrangement, or specified by regulations       169

Subdivision 12‑C—Payments for retirement or because of termination of employment            170

12‑80..................... Superannuation income streams and annuities................ 170

12‑85..................... Superannuation lump sums and payments for termination of employment              170

12‑90..................... Unused leave payments.................................................. 171

Subdivision 12‑D—Benefit and compensation payments                             171

12‑110................... Social Security or other benefit payment......................... 171

12‑115................... Commonwealth education or training payment............... 172

12‑120................... Compensation, sickness or accident payment................. 172

Subdivision 12‑E—Payments where TFN or ABN not quoted                    172

Payment in respect of investment                                                                       173

12‑140................... Recipient does not quote tax file number........................ 173

12‑145................... Investor becoming presently entitled to income of a unit trust  174

12‑150................... Limited application of section 12‑140 to payment under financial arrangement       174

12‑155................... When investor may quote ABN as alternative................ 175

12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying                176

12‑165................... Exception for fully franked dividend.............................. 176

12‑170................... Exception for payments below thresholds set by regulations 176

Payment of income of closely held trust where TFN not quoted                177

12‑175................... Trustee distributes income of closely held trust.............. 177

12‑180................... Beneficiary becomes presently entitled to income of closely held trust    179

12‑185................... Exception for payments below thresholds set by regulations 180

Payment for a supply                                                                                            180

12‑190................... Recipient does not quote ABN....................................... 180

Subdivision 12‑F—Dividend, interest and royalty payments                      183

Dividends                                                                                                                  184

12‑210................... Dividend payment to overseas person............................ 184

12‑215................... Dividend payment received for foreign resident............. 185

12‑220................... Application to part of a dividend..................................... 185

12‑225................... Application to distribution by a liquidator or other person 185

Interest                                                                                                                      186

12‑245................... Interest payment to overseas person............................... 186

12‑250................... Interest payment received for foreign resident................ 186

12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 187

12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment        187

Royalties                                                                                                                   188

12‑280................... Royalty payment to overseas person............................... 188

12‑285................... Royalty payment received for foreign resident................ 188

General                                                                                                                     189

12‑300................... Limits on amount withheld under this Subdivision......... 189

Subdivision 12‑FA—Departing Australia superannuation payments       189

12‑305................... Departing Australia superannuation payment................. 190

12‑310................... Limits on amount withheld under this Subdivision......... 190

Subdivision 12‑FAA—Excess untaxed roll‑over amount                             190

12‑312................... Untaxed roll‑over superannuation benefits..................... 190

12‑313................... Limits on amount withheld under this Subdivision......... 190

Subdivision 12‑FB—Payments to foreign residents etc.                               191

12‑315................... Payment to foreign resident etc....................................... 191

12‑317................... Payment received for foreign resident etc....................... 192

12‑319................... Exemptions from withholding obligations under this Subdivision           194

Subdivision 12‑FC—Seasonal Labour Mobility Program                          195

12‑319A................ Payment to employee...................................................... 195

Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources                195

Mining on Aboriginal land                                                                                  196

12‑320................... Mining payment.............................................................. 196

Natural resources                                                                                                   196

12‑325................... Natural resource payment............................................... 196

12‑330................... Payer must ask Commissioner how much to withhold... 197

12‑335................... Commissioner may exempt from section 12‑330, subject to conditions   198

Subdivision 12‑H—Distributions of withholding MIT income                   199

Guide to Subdivision 12‑H                                                                                   199

12‑375................... What this Subdivision is about....................................... 199

Operative provisions                                                                                             200

12‑383................... Meaning of withholding MIT.......................................... 200

12‑385................... Withholding by withholding MITs................................. 201

12‑390................... Withholding by custodians and other entities.................. 202

12‑395................... Requirement to give notice or make information available 206

12‑405................... Meaning of fund payment—general case........................ 208

12‑410................... Entity to whom payment is made.................................... 210

12‑415................... Failure to give notice or make information available: administrative penalty            211

12‑420................... Agency rules................................................................... 211

12‑425................... Meaning of clean building managed investment trust.... 212

12‑430................... Meaning of clean building.............................................. 212

Division 12A—Distributions by AMITs (including deemed payments)    215

Guide to Division 12A                                                                                           215

12A‑1.................... What this Division is about............................................. 215

Subdivision 12A‑A—Distributions by AMITs relating to dividend, interest and royalties          216

Guide to Subdivision 12A‑A                                                                                 216

12A‑5.................... What this Subdivision is about....................................... 216

Operative provisions                                                                                             216

12A‑10.................. Deemed payments—no obligation to withhold under Subdivision 12‑F (dividend, interest and royalty payments)....................................................................... 216

12A‑15.................. Dividend, interest or royalty payments relating to AMIT—requirement to give notice or make information available.......................................................................... 217

12A‑20.................. Failure to give notice or make information available under section 12A‑15: administrative penalty         220

12A‑25.................. Meaning of AMIT DIR payment..................................... 220

12A‑30.................. Meaning of AMIT dividend payment.............................. 221

12A‑35.................. Meaning of AMIT interest payment................................ 222

12A‑40.................. Meaning of AMIT royalty payment................................. 223

Subdivision 12A‑B—Distributions by AMITs relating to Subdivision 12‑H fund payments       224

Guide to Subdivision 12A‑B                                                                                 224

12A‑100................ What this Subdivision is about....................................... 224

Operative provisions                                                                                             224

12A‑105................ Deemed payments—no obligation to withhold under Subdivision 12‑H 224

12A‑110................ Meaning of fund payment—AMITs............................... 225

Subdivision 12A‑C—Deemed payments by AMITs etc.                                228

Guide to Subdivision 12A‑C                                                                                 228

12A‑200................ What this Subdivision is about....................................... 228

Operative provisions                                                                                             229

12A‑205................ Issue of AMMA statement etc. deemed to be payment... 229

12A‑210................ Post‑AMMA actual payment and pre‑AMMA actual payment in respect of deemed payment  231

12A‑215................ AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc. 232

12A‑220................ Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc.           234

Division 13—Alienated personal services payments                                     237

13‑1....................... Object of this Division.................................................... 237

13‑5....................... Payment to the Commissioner in respect of alienated personal services payments   237

13‑10..................... Alienated personal services payments............................. 240

13‑15..................... Personal services payment remitters............................... 241

13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01    242

Division 14—Non‑cash benefits, and accruing gains, for which amounts must be paid to the Commissioner       243

Subdivision 14‑A—Non‑cash benefits                                                               243

14‑1....................... Object of this Subdivision.............................................. 243

14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding..................................................................... 243

14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit              244

14‑15..................... Payer can recover amount paid to the Commissioner...... 245

Subdivision 14‑B—Accruing gains                                                                    245

14‑50..................... Object of this Subdivision.............................................. 245

14‑55..................... Liability for TFN withholding tax................................... 246

14‑60..................... Investment body may recover TFN withholding tax from investor          247

14‑65..................... Application of rules in Division 18................................. 247

14‑75..................... Overpayment of TFN withholding tax............................ 248

14‑85..................... Other laws do not exempt from TFN withholding tax.... 248

Subdivision 14‑C—Shares and rights under employee share schemes     249

14‑155................... Liability for TFN withholding tax (ESS)........................ 249

14‑160................... Employer may give individual tax file numbers to provider 250

14‑165................... Provider may recover TFN withholding tax (ESS) from individual         250

14‑170................... Application of rules in Division 18................................. 251

14‑175................... Overpayment of TFN withholding tax (ESS)................. 251

14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997  251

Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property        252

14‑200................... Certain acquisitions of taxable Australian property from foreign residents              252

14‑205................... Effect of look‑through earnout rights.............................. 253

14‑210................... Whether an entity is a relevant foreign resident............... 254

14‑215................... Excluded transactions..................................................... 256

14‑220................... Commissioner clearance certificates................................ 258

14‑225................... Entity declarations........................................................... 258

14‑230................... Administrative penalties for false or misleading declarations 259

14‑235................... Varying amounts to be paid to the Commissioner.......... 260

Division 15—Working out the amount to withhold                                       262

Guide to Division 15                                                                                              262

15‑1....................... What this Division is about............................................. 262

Subdivision 15‑A—Working out how much to withhold                              262

15‑10..................... How much to withhold................................................... 263

15‑15..................... Variation of amounts required to be withheld................. 263

Subdivision 15‑B—Withholding schedules and regulations                        264

15‑25..................... Commissioner’s power to make withholding schedules. 264

15‑30..................... Matters to be considered when making withholding schedules                265

15‑35..................... Regulations about withholding....................................... 266

Subdivision 15‑C—Declarations                                                                        267

15‑50..................... Declarations.................................................................... 267

Division 16—Payer’s obligations and rights                                                   269

Guide to Division 16                                                                                              269

16‑1....................... What this Division is about............................................. 269

Subdivision 16‑A—To withhold                                                                          269

When to withhold                                                                                                    270

16‑5....................... When to withhold an amount.......................................... 270

16‑7....................... Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12     270

16‑20..................... Payer discharged from liability to recipient for amount withheld             271

Penalties for not withholding                                                                              271

16‑25..................... Failure to withhold: offence............................................ 271

16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 272

16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty............................ 272

16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment.............................................. 273

16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.......................................................... 274

Subdivision 16‑B—To pay withheld amounts to the Commissioner         274

When and how to pay amounts to the Commissioner                                    275

16‑70..................... Entity to pay amounts to Commissioner......................... 275

16‑75..................... When amounts must be paid to Commissioner............... 275

16‑80..................... Penalty for failure to pay within time.............................. 277

16‑85..................... How amounts are to be paid........................................... 277

Who is a large, medium or small withholder                                                  278

16‑95..................... Meaning of large withholder.......................................... 278

16‑100................... Meaning of medium withholder...................................... 279

16‑105................... Meaning of small withholder.......................................... 280

16‑110................... Commissioner may vary withholder’s status downwards 280

16‑115................... Commissioner may vary withholder’s status upwards... 280

Subdivision 16‑BA—To be registered                                                               282

Registration of withholders                                                                                 282

16‑140................... Withholders must be registered....................................... 282

16‑141................... Registration and cancellation........................................... 283

Branch registration                                                                                               283

16‑142................... Branches may be registered............................................ 283

16‑143................... Separate amounts for entities and branches..................... 284

16‑144................... Cancellation of branch registration.................................. 285

16‑145................... Effect on branches of cancelling the entity’s registration 285

Registration of employers of working holiday makers                                285

16‑146................... Employers of working holiday makers must be registered 285

16‑147................... Registering employers of working holiday makers......... 286

16‑148................... Cancelling the registration of employers of working holiday makers       287

Subdivision 16‑C—To provide information                                                   289

To the Commissioner                                                                                            290

16‑150................... Commissioner must be notified of amounts.................... 290

16‑152................... Annual reports—Withholding payments covered by section 12‑175       290

16‑153................... Annual reports—other payments.................................... 291

To recipients of withholding payments                                                             294

16‑155................... Annual payment summary.............................................. 294

16‑156................... Annual payment summary for sections 12‑175 and 12‑180 296

16‑157................... Payment summary for Subdivision 12‑H....................... 296

16‑160................... Part‑year payment summary........................................... 297

16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment         298

16‑166................... Payment summary for a departing Australia superannuation payment     299

16‑167................... Payment summary for payment to recipient who does not quote ABN    299

16‑170................... Form and content of payment summary.......................... 299

16‑175................... Penalty for not providing payment summary.................. 301

16‑180................... Commissioner may exempt entity from giving payment summary           301

16‑182................... Definition of reportable employer superannuation contribution             302

Subdivision 16‑D—Additional rights and obligations of entity that makes a payment                303

16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes    303

Division 18—Recipient’s entitlements and obligations                                 305

Subdivision 18‑A—Crediting withheld amounts                                            305

Guide to Subdivision 18‑A                                                                                    305

18‑1....................... What this Subdivision is about....................................... 305

General exception                                                                                                  306

18‑5....................... No credit for refunded amount........................................ 306

Entitlement to credits: income tax liability                                                     307

18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 307

18‑15..................... Tax credit for recipient of withholding payments............ 307

18‑20..................... Tax credit where recipient is a partnership...................... 308

18‑25..................... Tax credit where recipient is a trust................................. 309

18‑27..................... Tax credit for alienated personal services payments........ 311

Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program                                                                    311

18‑30..................... Credit: dividend, interest or royalty................................. 311

18‑32..................... Credit: amount attributable to fund payment................... 312

18‑33..................... Credit: Seasonal Labour Mobility Program.................... 313

18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge               313

18‑40..................... Credit: liability under Part 4‑25....................................... 315

Entitlement to credit: departing Australia superannuation payment       316

18‑42..................... Credit—departing Australia superannuation payment..... 316

Entitlement to credit: mining payment                                                             317

18‑45..................... Credit—mining payment................................................. 317

Entitlement to credit: Petroleum resource rent tax                                       318

18‑55..................... Credit—Natural resource payments................................ 318

Subdivision 18‑B—Refund of certain withheld amounts                             319

18‑65..................... Refund of withheld amounts by the payer to the recipient 319

18‑70..................... Refund of withheld amounts by the Commissioner to the recipient         322

18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment           324

Subdivision 18‑C—Recipient’s obligations                                                      324

18‑100................... Obligation to keep payment summary............................. 324

Subdivision 18‑D—Directors etc. of non‑complying companies                325

Object of Subdivision                                                                                            326

18‑120................... Object of Subdivision..................................................... 326

PAYG withholding non‑compliance tax                                                           326

18‑125................... Directors of non‑complying companies.......................... 326

18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances       328

18‑135................... Associates of directors of non‑complying companies..... 329

18‑140................... Notices............................................................................ 333

18‑145................... When PAYG withholding non‑compliance tax must be paid.. 334

18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax               335

18‑155................... Validity of decisions and evidence.................................. 335

18‑160................... Rights of indemnity and contribution.............................. 336

Credits for later compliance                                                                               337

18‑165................... Credits for later compliance—scope............................... 337

18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances          337

18‑175................... Credits for later compliance—Commissioner may give notice 339

18‑180................... Effect of earlier credits.................................................... 340

Other provisions                                                                                                     341

18‑185................... When Commissioner may give notice............................. 341

18‑190................... Review of decisions........................................................ 342

Division 20—Other matters                                                                                 343

Subdivision 20‑B—Offences                                                                                343

20‑35..................... Offences......................................................................... 343

20‑40..................... Joining of charges........................................................... 344

20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company    345

Subdivision 20‑D—Review of decisions                                                            346

20‑80..................... Reviewable decisions...................................................... 346

Division 21—Entitlements relating to insolvent ADIs and general insurers 348

Guide to Division 21                                                                                              348

21‑1....................... What this Division is about............................................. 348

Subdivision 21‑A—Treatment of some payments by APRA                       348

21‑5....................... APRA treated like ADI or general insurance company.. 348

Part 2‑10—Pay as you go (PAYG) instalments                                          350

Division 45—Instalment payments                                                                    350

Guide to Division 45                                                                                              351

45‑1....................... What this Division is about............................................. 351

Subdivision 45‑A—Basic rules                                                                            352

45‑5....................... Object of this Part........................................................... 352

45‑10..................... Application of Part.......................................................... 354

45‑15..................... Liability for instalments.................................................. 354

45‑20..................... Information to be given to the Commissioner by certain payers               355

45‑25..................... Penalty for failure to notify Commissioner..................... 355

45‑30..................... Credit for instalments payable......................................... 356

Subdivision 45‑B—When instalments are due                                                357

45‑50..................... Liability to pay instalments............................................. 357

45‑60..................... Meaning of instalment quarter....................................... 358

45‑61..................... When quarterly instalments are due—payers of quarterly instalments     358

45‑65..................... Meaning of instalment month......................................... 359

45‑67..................... When monthly instalments are due—payers of monthly instalments       360

45‑70..................... When annual instalments are due.................................... 360

45‑72..................... Means of payment of instalment..................................... 361

45‑75..................... Instalments recoverable in same way as income tax........ 361

45‑80..................... General interest charge on late payment.......................... 361

45‑90..................... Commissioner may withdraw instalment rate................. 361

Subdivision 45‑C—Working out instalment amounts                                   362

45‑110................... How to work out amount of quarterly instalment on instalment income basis         362

45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax   363

45‑114................... How to work out amount of monthly instalment............ 364

45‑115................... How to work out amount of annual instalment............... 365

45‑120................... Meaning of instalment income........................................ 366

Subdivision 45‑D—Quarterly payers                                                                370

45‑125................... Quarterly payer who pays instalments on the basis of instalment income                370

45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax     372

45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 374

45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 375

Subdivision 45‑DA—Monthly payers                                                                376

45‑136................... Monthly payer................................................................ 376

45‑138................... Monthly payer requirement............................................. 377

Subdivision 45‑E—Annual payers                                                                     379

When you start and stop being an annual payer                                            379

45‑140................... Choosing to pay annual instalments................................ 379

45‑145................... Meaning of instalment group......................................... 381

45‑150................... Entity stops being annual payer if involved with GST registration or instalment group           381

45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly      382

45‑160................... Head company of a consolidated group stops being annual payer           383

Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income                                                                                         384

45‑200................... Application..................................................................... 384

45‑205................... Choosing a varied instalment rate................................... 384

45‑210................... Notifying Commissioner of varied instalment rate.......... 385

45‑215................... Credit on using varied rate in certain cases..................... 385

Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low              387

45‑225................... Effect of Subdivision in relation to monthly payers........ 387

45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate     387

45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax........................................................................................ 389

45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment      398

45‑235................... Liability to GIC on shortfall in annual instalment........... 399

45‑240................... Commissioner may remit general interest charge............ 401

Subdivision 45‑H—Partnership income                                                           401

45‑260................... Instalment income for a period in which you are in a partnership            401

Subdivision 45‑I—Trust income included in instalment income of beneficiary            402

45‑280................... Instalment income for a period in which you are a beneficiary of a trust  402

45‑285................... Instalment income includes distributions by certain resident unit trusts   405

45‑286................... Instalment income includes distributions by certain managed investment trusts       406

45‑287................... When trusts are disqualified due to concentrated ownership 407

45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled  409

45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income                409

Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax          410

45‑320................... Working out instalment rate............................................ 410

45‑325................... Working out your notional tax........................................ 411

45‑330................... Working out your adjusted taxable income.................... 412

45‑335................... Working out your adjusted withholding income............. 415

45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income           415

Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax             418

45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax      418

45‑360................... How Commissioner works out benchmark instalment rate 418

45‑365................... Working out your benchmark tax................................... 419

45‑370................... Working out your adjusted assessed taxable income for the variation year             420

45‑375................... Adjusted assessed tax on adjusted assessed taxable income 421

Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax                                                                                                 423

45‑400................... Working out amount of instalment—payers of 4 quarterly instalments    423

45‑402................... Working out amount of instalment—payers of 2 quarterly instalments    425

45‑405................... Working out your GDP‑adjusted notional tax................ 427

Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax                                                                                                 428

45‑410................... Working out amount of instalment—payers of 4 quarterly instalments    429

45‑412................... Working out amount of instalment—payers of 2 quarterly instalments    431

45‑415................... Estimating your benchmark tax....................................... 432

45‑420................... Credit in certain cases where amount of instalment is nil 433

Subdivision 45‑N—How this Part applies to the trustee of a trust             434

Trustees to whom this Part applies                                                                    434

45‑450................... Trustees to whom a single instalment rate is given......... 434

45‑455................... Trustees to whom several instalment rates are given....... 435

45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 436

45‑465................... Meaning of instalment income........................................ 436

45‑468................... Multi‑rate trustee may pay quarterly instalments............. 437

How Commissioner works out instalment rate and notional tax for a multi‑rate trustee            437

45‑470................... Working out instalment rate............................................ 437

45‑473................... Commissioner must notify you of notional tax............... 438

45‑475................... Working out your notional tax........................................ 438

45‑480................... Working out your adjusted taxable income.................... 439

45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share         439

45‑485................... Working out your adjusted withholding income............. 440

How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee                441

45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax      441

45‑530................... How Commissioner works out benchmark instalment rate 441

45‑535................... Working out your benchmark tax................................... 442

Subdivision 45‑P—Anti‑avoidance rules                                                          442

45‑595................... Object of this Subdivision.............................................. 443

45‑597................... Effect of Subdivision in relation to instalment months.... 443

45‑600................... General interest charge on tax benefit relating to instalments 443

45‑605................... When do you get a tax benefit from a scheme?............... 445

45‑610................... What is your tax position for an income year?................ 446

45‑615................... What is your hypothetical tax position for an income year? 448

45‑620................... Amount on which GIC is payable, and period for which it is payable     448

45‑625................... Credit if you also got a tax detriment from the scheme... 449

45‑630................... When do you get a tax detriment from a scheme?........... 450

45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides                451

45‑640................... Commissioner may remit general interest charge in special cases            453

Subdivision 45‑Q—General rules for consolidated groups                         453

Guide to Subdivision 45‑Q                                                                                   453

45‑700................... What this Subdivision is about....................................... 453

Application of Subdivision                                                                                   454

45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers       454

45‑705................... Application of Subdivision to head company................. 455

Usual operation of this Part for consolidated group members                  460

45‑710................... Single entity rule............................................................. 460

45‑715................... When instalments are due—modification of section 45‑61 460

45‑720................... Head company cannot be an annual payer—modification of section 45‑140           461

Membership changes                                                                                             461

45‑740................... Change of head company................................................ 461

45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group)              464

45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group)           465

45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax   466

Subdivision 45‑R—Special rules for consolidated groups                           468

Guide to Subdivision 45‑R                                                                                    468

45‑850................... What this Subdivision is about....................................... 468

Operative provisions                                                                                             469

45‑855................... Section 701‑1 disregarded for certain purposes.............. 469

45‑860................... Member having a different instalment period.................. 469

45‑865................... Credit rule....................................................................... 471

45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment       472

45‑875................... Other rules about the general interest charge................... 475

45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group          476

45‑885................... Early application of Subdivision 45‑Q to the head company of a new group           478

Subdivision 45‑S—MEC groups                                                                         480

Guide to Subdivision 45‑S                                                                                    480

45‑900................... What this Subdivision is about....................................... 480

Preliminary                                                                                                             481

45‑905................... Objects of Subdivision................................................... 481

General modification rules                                                                                  481

45‑910................... Extended operation of Part to cover MEC groups.......... 481

Extended operation of Subdivision 45‑Q                                                         482

45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups  482

45‑915................... Application of Subdivision 45‑Q to provisional head company               482

45‑917................... Assumption for applying section 45‑710 (single entity rule) 486

45‑920................... Change of provisional head company............................. 487

45‑922................... Life insurance company.................................................. 490

Extended operation of Subdivision 45‑R                                                          490

45‑925................... Additional modifications of sections 45‑855 and 45‑860 490

45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision     490

45‑935................... Additional modifications of section 45‑885.................... 491

Part 2‑15—Returns and assessments                                                               492

Division 70Tax receipts                                                                                    492

Guide to Division 70                                                                                              493

70‑1....................... What this Division is about............................................. 492

Subdivision 70‑A—Tax receipts                                                                         492

70‑5....................... Tax receipt to be provided to certain individual taxpayers 493

Part 2‑30—Collecting Medicare levy with income tax                           495

Division 90Medicare levy and Medicare levy surcharge                        495

Subdivision 90‑A—Treatment like income tax                                               495

90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 495

Part 2‑35—Excess superannuation contributions                                     496

Division 95—Excess concessional contributions charge                              496

Guide to Division 95                                                                                              497

95‑1....................... What this Division is about............................................. 496

Subdivision 95‑A—Object of Division                                                              496

95‑5....................... Object of Division.......................................................... 496

Subdivision 95‑B—Excess concessional contributions charge                   497

95‑10..................... Liability to excess concessional contributions charge..... 497

95‑15..................... Amount of excess concessional contributions charge..... 498

95‑20..................... When excess concessional contributions charge is due and payable        498

95‑25..................... General interest charge.................................................... 499

Division 96—Releasing money from superannuation                                  500

Subdivision 96‑A—Releasing money from superannuation                       500

Guide to Subdivision 96‑A                                                                                    500

96‑1....................... What this Subdivision is about....................................... 500

Requesting a release authority                                                                            501

96‑5....................... Electing to release excess concessional contributions..... 501

96‑7....................... Electing to release non‑concessional contributions etc.... 503

Issuing a release authority to superannuation provider                              505

96‑10..................... Release authorities for elections under section 96‑5........ 505

96‑12..................... Release authorities for elections under section 96‑7........ 506

96‑15..................... Varying and revoking a release authority........................ 506

Complying with a release authority                                                                  506

96‑20..................... Obligations of superannuation providers........................ 506

96‑25..................... Voluntary compliance with a release authority relating to voluntary release interests and defined benefit interests........................................................................... 508

96‑30..................... Meaning of maximum available release amount............ 508

96‑35..................... Notifying Commissioner................................................ 508

96‑40..................... Notifying individual—unsuccessful release attempt....... 509

96‑42..................... Notifying individual—successful releases under section 96‑12               510

96‑45..................... Compensation for acquisition of property....................... 510

Consequences of releasing amounts                                                                  510

96‑50..................... Entitlement to credits....................................................... 510

96‑55..................... Interest for late payments of money received by the Commissioner in accordance with release authority........................................................................................ 511

96‑60..................... Income tax treatment of amounts released—proportioning rule does not apply       511

Division 97—Excess contributions determinations                                       512

Subdivision 97‑A—Excess concessional contributions determinations    512

Guide to Subdivision 97‑A                                                                                    512

97‑1....................... What this Subdivision is about....................................... 512

Operative provisions                                                                                             512

97‑5....................... Determination of excess concessional contributions and charge              512

97‑10..................... Review............................................................................ 513

Subdivision 97‑B—Excess non‑concessional contributions determinations 513

Guide to Subdivision 97‑B                                                                                    513

97‑20..................... What this Subdivision is about....................................... 513

Operative provisions                                                                                             514

97‑25..................... Excess non‑concessional contributions determinations... 514

97‑30..................... Associated earnings........................................................ 514

97‑35..................... Review............................................................................ 515


An Act to provide for the administration of certain Acts relating to Taxation, and for purposes connected therewith

Part IPreliminary

  

1  Short title

                   This Act may be cited as the Taxation Administration Act 1953.

2  Interpretation

             (1)  In this Act (except Schedule 1), unless the contrary intention appears:

approved form has the meaning given by Schedule 1.

ASIO means the Australian Security Intelligence Organisation.

assessable amount has the meaning given by subsection 155‑5(2) in Schedule 1.

Australia, when used in a geographical sense, has the same meaning as in the Income Tax Assessment Act 1997.

Commissioner means the Commissioner of Taxation.

Deputy Commissioner means any Deputy Commissioner of Taxation.

Director‑General of Security means the Director‑General of Security holding office under the Australian Security Intelligence Organisation Act 1979.

engage in conduct means:

                     (a)  do an act; or

                     (b)  omit to perform an act.

excess concessional contributions determination has the same meaning as in subsection 995‑1(1) of the Income Tax Assessment Act 1997.

excise law has the meaning given by the Income Tax Assessment Act 1997.

exempt Australian government agency has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.

failure to notify penalty means the penalty worked out under Division 2 of Part IIA.

fuel tax law has the meaning given by the Fuel Tax Act 2006.

general interest charge means the charge worked out under Part IIA.

Immigration Department has the meaning given by the Income Tax Assessment Act 1997.

Immigration Secretary has the meaning given by the Income Tax Assessment Act 1997.

indirect tax law has the meaning given by the Income Tax Assessment Act 1997.

ineligible income tax remission decision has the meaning given by section 14ZS.

late reconciliation statement penalty means the penalty worked out under Division 3 of Part IIA.

migration officer means:

                     (a)  the Immigration Secretary; or

                     (b)  an employee of the Immigration Department.

objection decision has the meaning given by subsection 14ZY(2).

officer means a person appointed or engaged under the Public Service Act 1999.

private indirect tax ruling means a private ruling, to the extent that it relates to an indirect tax law (other than the fuel tax law).

private ruling has the meaning given by section 359‑5 in Schedule 1.

registered tax agent or BAS agent has the same meaning as in the Tax Agent Services Act 2009.

Second Commissioner means a Second Commissioner of Taxation.

taxation law has the meaning given by the Income Tax Assessment Act 1997.

Note:          See also subsection (2).

tax liability means a liability to the Commonwealth arising under, or by virtue of, a taxation law.

Tribunal means the Administrative Appeals Tribunal.

             (2)  Despite the definition of taxation law in subsection (1), an Excise Act (as defined in subsection 4(1) of the Excise Act 1901) is not a taxation law for the purposes of Part III of this Act.

2A  Application of the Criminal Code

                   Chapter 2 of the Criminal Code applies to all offences against this Act.

Note:          Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

2B  Act binds the Crown

                   This Act binds the Crown in each of its capacities. However, it does not make the Crown liable to a pecuniary penalty or to be prosecuted for an offence.

3  Application

                   This Act extends to every external Territory referred to in the definition of Australia.

3AA  Schedule 1

             (1)  Schedule 1 has effect.

Definitions in Schedule 1 do not apply to rest of Act

          (1A)  So far as a provision in Schedule 1 gives an expression a particular meaning, the provision does not also have effect for the purposes of this Act (other than Schedule 1), except as provided in this Act (other than Schedule 1).

Application of interpretation provisions of Income Tax Assessment Act 1997

             (2)  An expression has the same meaning in Schedule 1 as in the Income Tax Assessment Act 1997.

             (3)  Division 950 of the Income Tax Assessment Act 1997 (which contains rules for interpreting that Act) applies to Schedule 1 to this Act as if the provisions in that Schedule were provisions of that Act.

Part IAAdministration

  

3A  General administration of Act

                   The Commissioner has the general administration of this Act.

Note:          An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1.

3B  Annual report

             (1)  The Commissioner shall, as soon as practicable after 30 June in each year, prepare and furnish to the Minister a report on the working of this Act.

       (1AA)  A report under subsection (1) in relation to a year ending on 30 June shall:

                     (b)  set out:

                              (i)  the number of occasions (if any) during the year on which a request was made to disclose information under subsection 355‑55(1) in Schedule 1 (about disclosures to Ministers); and

                             (ii)  the number of occasions (if any) during the year on which information was disclosed under that subsection; and

                            (iii)  the Ministers to whom the information was disclosed; and

                     (c)  set out:

                              (i)  the number of occasions (if any) during the year on which a request was made to disclose information under subsection 355‑70(1) in Schedule 1 (about disclosures for law enforcement and related purposes); and

                             (ii)  the number of occasions (if any) during the year on which information was disclosed under that subsection; and

                            (iii)  the types of entities and the names of the courts and tribunals to which the information was disclosed; and

                            (iv)  if the information was disclosed under table item 1 or 6 in subsection 355‑70(1)—the general categories of offences in relation to which the information was disclosed; and

                     (d)  set out the number (if any) of *taxation officers found guilty of the offence in section 355‑25 in Schedule 1 (about disclosure of protected information); and

                     (e)  set out information on the exercise during the year of the Commissioner’s powers under Subdivision 370‑A in Schedule 1 (Commissioner’s remedial power).

          (1B)  Subsection (1) does not apply in relation to Part III and sections 15 and 15A insofar as that Part and those sections apply in relation to the Development Allowance Authority Act 1992.

          (1C)  Subsection (1) does not apply in relation to Part III and sections 15 and 15A insofar as that Part and those sections apply in relation to the Tax Agent Services Act 2009.

             (2)  The Minister shall cause a copy of a report furnished under subsection (1) to be laid before each House of the Parliament within 15 sitting days of that House after the day on which the Minister receives the report.

             (3)  For the purposes of section 34C of the Acts Interpretation Act 1901, a report that is required by subsection (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.

             (4)  In this section:

this Act does not include Part IVC.

3C  Reporting of information about corporate tax entity with reported total income of $100 million or more

             (1)  This section applies to a corporate tax entity for an income year if, according to information reported to the Commissioner in the entity’s income tax return for the income year:

                     (a)  the entity has total income equal to or exceeding $100 million for the income year and, at the end of the income year:

                              (i)  the entity is not an Australian resident that is a private company for the income year; or

                             (ii)  the entity is a member of a wholly‑owned group that has a foreign resident ultimate holding company; or

                            (iii)  the percentage of foreign shareholding in the entity is greater than 50%; or

                     (b)  the entity has total income equal to or exceeding $200 million for the income year and, at the end of the income year, the entity is an Australian resident that is a private company for the income year.

An expression used in this subsection that is also used in the Income Tax Assessment Act 1997 has the same meaning as in that Act.

             (2)  The Commissioner must, as soon as practicable after the end of the income year, make publicly available the information mentioned in subsection (3).

             (3)  The information is as follows:

                     (a)  the entity’s ABN (within the meaning of the Income Tax Assessment Act 1997) and name;

                     (b)  the entity’s total income for the income year, according to information reported to the Commissioner in the entity’s income tax return (within the meaning of that Act) for the income year;

                     (c)  the entity’s taxable income or net income (if any) for the income year, according to information reported to the Commissioner in that income tax return;

                     (d)  the entity’s income tax payable (if any) for the financial year corresponding to the income year, according to information reported to the Commissioner in that income tax return.

             (4)  Subsection (5) applies if:

                     (a)  the entity gives the Commissioner a notice in writing that the return mentioned in paragraph (3)(b) contains an error; and

                     (b)  the notice contains information that corrects the error.

             (5)  The Commissioner may at any time make the information mentioned in paragraph (4)(b) publicly available, in accordance with subsection (2), in order to correct the error.

             (6)  To avoid doubt, if the Commissioner considers that information made publicly available under subsection (2) fails to reflect all of the information required to be made publicly available under that subsection, the Commissioner may at any time make publicly available other information in order to remedy the failure.

3CA  Reporting of information by significant global entities

             (1)  This section applies to a corporate tax entity for an income year if:

                     (a)  the entity is a significant global entity for the income year; and

                     (b)  at the end of the income year, the entity is:

                              (i)  an Australian resident; or

                             (ii)  a foreign resident who operates an Australian permanent establishment (within the meaning of Part IVA of the Income Tax Assessment Act 1936); and

                     (c)  the entity does not lodge a general purpose financial statement for the financial year most closely corresponding to the income year:

                              (i)  with the Australian Securities and Investments Commission; and

                             (ii)  within the time provided under subsection 319(3) of the Corporations Act 2001 for lodgement of a report for that financial year.

             (2)  A corporate tax entity to which this section applies for an income year must, on or before the day by which the entity is required to lodge its income tax return for the income year with the Commissioner, give to the Commissioner in the approved form a general purpose financial statement for the financial year most closely corresponding to the income year.

Note:          Section 286‑75 in Schedule 1 provides an administrative penalty for breach of this subsection.

             (3)  The Commissioner must give a copy of the statement to the Australian Securities and Investments Commission.

             (4)  The giving of the copy to the Australian Securities and Investments Commission under subsection (3) is taken, for the purposes of the Corporations Act 2001, to be lodgement of the document with the Australian Securities and Investments Commission.

Note:          Under section 1274 of the Corporations Act 2001, a person may inspect, and require to be given a copy or extract of, any document lodged with the Australian Securities and Investments Commission.

             (5)  For the purposes of this section, a general purpose financial statement in relation to an entity:

                     (a)  must be prepared in accordance with:

                              (i)  the accounting principles; or

                             (ii)  if accounting principles do not apply in relation to the entity—commercially accepted principles relating to accounting; and

                     (b)  if the entity is a member of a group of entities that are consolidated for accounting purposes as a single group—must relate to:

                              (i)  the entity; or

                             (ii)  the entity and some or all of the other members of the group.

             (6)  An expression used in this section that is also used in the Income Tax Assessment Act 1997 has the same meaning as in that Act.

3E  Reporting of information about entity with PRRT payable

             (1)  This section applies to an entity if the entity has an amount of PRRT payable for a year of tax, according to information reported to the Commissioner in the entity’s PRRT return for the year of tax.

             (2)  The Commissioner must, as soon as practicable after the end of the year of tax, make publicly available the information mentioned in subsection (3).

             (3)  The information is as follows:

                     (a)  the entity’s ABN (within the meaning of the Income Tax Assessment Act 1997) and name;

                     (b)  the PRRT payable by the entity in respect of the year of tax, according to information reported to the Commissioner in the entity’s PRRT return for the year of tax.

             (4)  Subsection (5) applies if:

                     (a)  the entity gives the Commissioner a notice in writing that the return mentioned in paragraph (3)(b) contains an error; and

                     (b)  the notice contains information that corrects the error.

             (5)  The Commissioner may at any time make the information mentioned in paragraph (4)(b) publicly available, in accordance with subsection (2), in order to correct the error.

             (6)  To avoid doubt, if the Commissioner considers that information made publicly available under subsection (2) fails to reflect all of the information required to be made publicly available under that subsection, the Commissioner may at any time make publicly available other information in order to remedy the failure.

             (7)  In this section:

PRRT return means a return under section 59 or 60 of the Petroleum Resource Rent Tax Assessment Act 1987.

year of tax has the meaning given by the Petroleum Resource Rent Tax Assessment Act 1987.

Part IICommissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation

  

4  Commissioner and Second Commissioners of Taxation

                   There shall be a Commissioner of Taxation and 3 Second Commissioners of Taxation, who shall be appointed by the Governor‑General.

4A  Statutory Agency etc. for purposes of Public Service Act

             (1)  The staff necessary to assist the Commissioner are to be persons engaged under the Public Service Act 1999.

             (2)  For the purposes of the Public Service Act 1999:

                     (a)  the Commissioner and the APS employees assisting the Commissioner together constitute a Statutory Agency; and

                     (b)  the Commissioner is the Head of that Statutory Agency.

5  Tenure of Commissioner and Second Commissioners

             (1)  The Commissioner of Taxation and each Second Commissioner of Taxation shall be appointed for terms of 7 years respectively and shall be eligible for re‑appointment.

             (3)  The Commissioner of Taxation and the Second Commissioners of Taxation are not subject to the Public Service Act 1999.

5A  Remuneration and allowances of Commissioner and Second Commissioners

             (1)  The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such remuneration as is determined by the Remuneration Tribunal but, if no determination of that remuneration by the Tribunal is in operation, they shall be paid remuneration at the respective rates that were applicable immediately before the commencement of this section.

             (2)  The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such allowances as are prescribed.

             (3)  This section has effect subject to the Remuneration Tribunal Act 1973.

6  Leave of absence

             (1)  The Commissioner and a Second Commissioner have such recreation leave entitlements as are determined by the Remuneration Tribunal.

             (2)  The Minister may grant the Commissioner and a Second Commissioner leave of absence, other than recreation leave, on such terms and conditions as to remuneration or otherwise as the Minister determines.

6A  Resignation

                   The Commissioner or a Second Commissioner may resign his or her office by writing signed by the Commissioner or Second Commissioner, as the case may be, and delivered to the Governor‑General.

6B  Acting appointments

             (1)  The Minister may appoint a person to act in the office of Commissioner of Taxation:

                     (a)  during a vacancy in that office; or

                     (b)  during any period, or during all periods, when the person holding that office is absent from duty or from Australia or is, for any other reason, unable to perform the functions of that office.

Note:          For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901.

             (2)  The Minister may appoint a person to act in an office of Second Commissioner of Taxation:

                     (a)  during a vacancy in that office; or

                     (b)  during any period, or during all periods, when the person holding the office of Second Commissioner of Taxation is absent from duty or from Australia, is acting in the office of Commissioner of Taxation or is, for any other reason, unable to perform the functions of the office of Second Commissioner of Taxation.

Note:          For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901.

             (6)  While a person is acting in the office of Commissioner of Taxation, the person has and may exercise all the powers, and shall perform all the functions, of the Commissioner under this Act or any other law.

          (6A)  For the purposes of subsection (6), the Commissioner’s powers and functions include powers and functions given to the Commissioner in his or her capacity as Registrar of the Australian Business Register.

             (7)  While a person is acting in an office of Second Commissioner of Taxation, the person has and may exercise all the powers, and shall perform all the functions, of the Second Commissioner under this Act or any other law.

6C  Suspension and removal from office of Commissioner or Second Commissioner

             (1)  The Governor‑General may remove the Commissioner or a Second Commissioner from office on an address praying for the removal of the Commissioner or the Second Commissioner, as the case may be, on the ground of proved misbehaviour or physical or mental incapacity being presented to the Governor‑General by each House of the Parliament in the same session of the Parliament.

             (2)  The Governor‑General may suspend the Commissioner or a Second Commissioner from office on the ground of misbehaviour or physical or mental incapacity.

             (3)  Where the Governor‑General suspends the Commissioner or a Second Commissioner, the Minister shall cause a statement of the grounds of the suspension to be laid before each House of the Parliament within 7 sitting days of that House after the suspension.

             (4)  If, at the expiration of 15 sitting days of a House of the Parliament after the day on which the statement was laid before that House, an address under subsection (1) has not been presented to the Governor‑General by each House of the Parliament, the suspension terminates.

             (5)  The suspension of the Commissioner or a Second Commissioner from office under this section does not affect any entitlement of the Commissioner or Second Commissioner, as the case may be, to be paid remuneration and allowances.

             (6)  If:

                     (a)  the Commissioner or a Second Commissioner becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his or her creditors or makes an assignment of his or her remuneration for their benefit;

                     (b)  the Commissioner or a Second Commissioner engages, except with the approval of the Minister, in paid employment outside the duties of the office of Commissioner or Second Commissioner, as the case may be; or

                     (c)  the Commissioner or a Second Commissioner is absent from duty, except on leave of absence, for 14 consecutive days or 28 days in any 12 months;

the Governor‑General shall remove the Commissioner or Second Commissioner, as the case may be, from office.

             (7)  The Governor‑General may, with the consent of the Commissioner or a Second Commissioner, retire the Commissioner or Second Commissioner, as the case may be, from office on the ground of physical or mental incapacity.

             (8)  The Commissioner or a Second Commissioner shall not be suspended, removed or retired from office except as provided by this section.

6D  Powers of Second Commissioner

             (1)  Subject to subsection (2) and to the regulations, a Second Commissioner has all the powers, and may perform all the functions, of the Commissioner under a taxation law.

             (2)  Subsection (1) does not apply in relation to:

                     (a)  section 8 of this Act; or

                     (b)  a provision of a taxation law that:

                              (i)  provides that the Commissioner has the general administration of the taxation law; or

                             (ii)  requires the Commissioner to furnish to the Minister a report on the working of the taxation law during any period.

             (3)  When a power or function of the Commissioner under a taxation law is exercised or performed by a Second Commissioner, the power or function shall, for the purposes of the taxation law, be deemed to have been exercised or performed by the Commissioner.

             (4)  The exercise of a power, or the performance of a function, of the Commissioner under a taxation law by a Second Commissioner does not prevent the exercise of the power, or the performance of the function, by the Commissioner.

7  Deputy Commissioners of Taxation

                   There shall be such Deputy Commissioners of Taxation as are required.

8  Delegation

             (1)  The Commissioner may, either generally or as otherwise provided by the instrument of delegation, by writing signed by the Commissioner, delegate to a Deputy Commissioner or any other person all or any of the Commissioner’s powers or functions under a taxation law or any other law of the Commonwealth or a Territory, other than this power of delegation.

          (1A)  For the purposes of this section, the Commissioner’s powers and functions include powers and functions given to the Commissioner in his or her capacity as Registrar of the Australian Business Register.

             (2)  Subject to subsection (5), a power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of the taxation law or the other law, as the case may be, be deemed to have been exercised or performed by the Commissioner.

             (4)  A delegation under this section does not prevent the exercise of a power or the performance of a function by the Commissioner.

             (5)  A delegation under this section may be made subject to a power of review and alteration by the Commissioner, within a period specified in the instrument of delegation, of acts done in pursuance of the delegation.

             (6)  A delegation under this section continues in force notwithstanding a change in the occupancy of, or a vacancy in, the office of Commissioner, but, for the purposes of the application of subsection 33(3) of the Acts Interpretation Act 1901 to a delegation under this section, nothing in any law shall be taken to preclude the revocation or variation of the delegation by the same or a subsequent holder of that office.

Part IIAThe general interest charge

  

8AAA  Overview

This Part explains how to work out the general interest charge on an amount.

Usually, a person is liable to pay the charge if an amount that the person must pay to the Commissioner is not paid on time. But there are also other circumstances in which a person can be liable.

A person is only liable to pay the charge if a provision of an Act makes the person liable.

8AAB  When the general interest charge applies

             (1)  There are certain provisions of this Act and other Acts that make persons liable to pay the general interest charge. Subsection (4) lists the provisions.

             (2)  A person is only liable to pay the charge on an amount if a provision specifies that the person is liable to pay the charge on the amount.

             (3)  The charge does not apply to the Commonwealth or an authority of the Commonwealth.

             (4)  The following table is an index of the laws that deal with liability to the charge.

 

Liability to general interest charge

 

Item

Column 1

Section

Column 2

Act

Column 3

Topic

 

1

162‑100

A New Tax System (Goods and Services Tax) Act 1999

payment of GST instalments

 

2

168‑10

A New Tax System (Goods and Services Tax) Act 1999

supplies later found to be GST‑free supplies

 

3

25‑10

A New Tax System (Wine Equalisation Tax) Act 1999

purchases later found to be GST free supplies

 

3A

175‑65

Australian Charities and Not‑for‑profits Commission Act 2012

payment of administrative penalty

 

5

93

Fringe Benefits Tax Assessment Act 1986

payment of fringe benefits tax

 

6

112B

Fringe Benefits Tax Assessment Act 1986

payment of fringe benefits tax instalments

 

7

102UP

Income Tax Assessment Act 1936

payment of trustee beneficiary non‑disclosure tax

 

8

128C

Income Tax Assessment Act 1936

payment of withholding tax

 

9

163AA

Income Tax Assessment Act 1936

returns by instalment taxpayers

 

10

163B

Income Tax Assessment Act 1936

returns by persons other than instalment taxpayers

 

10A

172A

Income Tax Assessment Act 1936

repayments of excessive tax offset refunds

 

11

271‑80 in Schedule 2F

Income Tax Assessment Act 1936

payment of family trust distribution tax

 

12

5‑15

Income Tax Assessment Act 1997

unpaid income tax or shortfall interest charge

 

13

197‑75

Income Tax Assessment Act 1997

payment of untainting tax

 

14

214‑155

Income Tax Assessment Act 1997

payment of franking tax by a corporate tax entity

 

15

292‑390

Income Tax Assessment Act 1997

payment of excess non‑concessional contributions tax or shortfall interest charge

 

15A

293‑75

Income Tax Assessment Act 1997

payment of Division 293 tax or shortfall interest charge

 

15B

294‑250

Income Tax Assessment Act 1997

payment of excess transfer balance tax

 

16A

418‑170

Income Tax Assessment Act 1997

payment of excess exploration credit tax or shortfall interest charge

 

17

721‑30

Income Tax Assessment Act 1997

liability of members of consolidated groups

 

18

840‑810

Income Tax Assessment Act 1997

payment of managed investment trust withholding tax

 

18A

840‑910

Income Tax Assessment Act 1997

payment of Seasonal Labour Mobility Program withholding tax

 

19

214‑105

Income Tax (Transitional Provisions) Act 1997

payment of franking deficit tax

 

20

85

Petroleum Resource Rent Tax Assessment Act 1987

payment of petroleum resource rent tax, shortfall interest charge or instalment transfer interest charge

 

20A

282‑19

Private Health Insurance Act 2007

repayment of private health insurance premium reduction or refund

 

21

35

Product Grants and Benefits Administration Act 2000

payment of a designated scheme debt

 

22

21

Superannuation Contributions Tax (Assessment and Collection) Act 1997

increase in liability to pay superannuation contributions surcharge because of amendment of assessment

 

23

22

Superannuation Contributions Tax (Assessment and Collection) Act 1997

liability to pay superannuation contributions surcharge because of new assessment

 

24

25

Superannuation Contributions Tax (Assessment and Collection) Act 1997

payment of superannuation contributions surcharge or advance instalment

 

25

18

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

increase in liability to pay superannuation contributions surcharge because of amendment of assessment

 

26

21

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

payment of superannuation contributions surcharge

 

27

25

Superannuation (Government Co‑contribution for Low Income Earners) Act 2003

repayments or underpayments of Government co‑contributions that cannot be credited to an account

 

28

49

Superannuation Guarantee (Administration) Act 1992

payment of superannuation guarantee charge

 

29

15DC

Superannuation (Self Managed Superannuation Funds) Taxation Act 1987

payment of superannuation (self managed superannuation funds) supervisory levy

 

30

17A

Superannuation (Unclaimed Money and Lost Members) Act 1999

payment of unclaimed money

 

31

18C

Superannuation (Unclaimed Money and Lost Members) Act 1999

repayment of Commissioner’s payment that cannot be credited to an account

 

32

20F

Superannuation (Unclaimed Money and Lost Members) Act 1999

payment of unclaimed superannuation of former temporary residents

 

33

20M

Superannuation (Unclaimed Money and Lost Members) Act 1999

repayment of Commissioner’s payment for former temporary resident that cannot be credited to an account

 

34

24F

Superannuation (Unclaimed Money and Lost Members) Act 1999

payment in respect of lost member accounts

 

35

24L

Superannuation (Unclaimed Money and Lost Members) Act 1999