Failure to withhold

You may be liable for a failure to withhold penalty if you do not withhold amounts from payments to Australian resident employees engaged in overseas service.

However, the penalty may be waived if you:

  • were not aware that you were required to withhold from payments
  • your systems could not be updated to do this for you.

Payers in this situation should phone us on 13 28 66.

    Last modified: 01 Dec 2015QC 22115