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  • Non-resident withholding tax – interest, dividend or royalty

    We focus on:

    • interest, dividend or royalty withholding tax that has not been withheld or paid
    • situations where an incorrect amount of withholding tax is paid
    • deductions for interest or royalty payments to an offshore entity being incorrectly claimed or misclassified on tax returns
    • a withholding tax exemption or tax treaty relief being incorrectly claimed
    • situations where an entity pays interest, dividends or a royalty to a non-resident and fails to lodge, by 31 October, either  
    • situations where entities defer their interest to avoid or defer withholding tax and claim deductions on an accruals basis
    • arrangements where offshore related entities are used to facilitate the avoidance of interest withholding tax in relation to interest expenses deducted against Australian-sourced income and paid to non-residents
    • offshore entities that claim a credit for tax withheld without declaring income
    • situations where there are discrepancies between the amounts
      • claimed as deductions for interest or royalty payments on the tax return
      • reported as withheld and paid on the activity statement or annual report.

    See also

    Last modified: 09 May 2022QC 69446