16.a. Are spotters' fees subject to PAYG withholding?

Non-interpretative - straight application of the law.

The general rule for the payer is that they should withhold if an ABN has not been quoted, unless they are satisfied that the payment to the payee meets one of the exclusions from PAYG withholding.

In the absence of any other indicators that an enterprise is being carried on, the receipt of small infrequent amounts by individuals would not amount to carrying on an enterprise.

Where the entity receiving the fee is not carrying on an enterprise, the payer should get a statement from the payee indicating the nature of the payment eg the supply is not in the course or furtherance of an enterprise. The ATO form Statement by a supplier (NAT 3346) is appropriate.

Where the entity receiving the payment is carrying on an enterprise the ABN should be quoted.

    Last modified: 07 Jun 2012QC 16411