Pay as you go (PAYG) withholding applies to several payments including:
- payments for a supply where no Australian Business Number (ABN) is quoted and no exemptions for quoting applied to the supplier
- payments arising from investments where no TFN or ABN is quoted, and
- certain payments to foreign residents prescribed in the Regulations.
If the payer withheld an amount from a payment to the trust because the trust did not quote an ABN, the payer should have sent a PAYG payment summary - withholding where ABN not quoted (NAT 3283) to the trust.
If the payer withheld an amount from a payment to the trust because of the operation of foreign resident withholding, the payer should have sent a PAYG payment summary - foreign employment (NAT 73297) to the trust.
A payer may issue a receipt, remittance advice or similar document in place of the PAYG payment summary - withholding where ABN not quoted or PAYG payment summary - foreign employment. If the trust did not receive or has lost its copy of a payment summary, contact the payer responsible and request a signed photocopy of the payer’s copy.
Complete a Non-individual PAYG payment summary schedule 2015 (NAT 3422) if you show amounts at:
- C or D item 5
- B item 5
- T item 6G
- U item 6.
Income subject to foreign resident withholding that has been included in a distribution received from other trusts or partnerships must be shown at item 8. A Non-individual PAYG payment summary schedule 2015 is not required for these distributions because they do not have an associated payment summary.
Print the trust’s TFN and name in the appropriate boxes at the top of the schedule.
From each PAYG payment summary – withholding where ABN not quoted or PAYG payment summary – foreign employment issued to the trust from a payer, record on the schedule the:
- payer’s ABN (or withholding payer number)
- total tax withheld
- gross payment
- payer’s name.
When you have entered details of all these payment summaries on the schedule, attach the schedule to the trust tax return.
Do not attach copies of any payment summary to the tax return. Keep them with the trust’s copy of the tax return and keep a copy of the schedule with the trust’s tax records.
Where the trust is a member of a consolidated group or MEC group for the whole income year and amounts have been withheld from payments or distributions, the responsibility for preparing the schedule will rest on the head company of the group.
Where a return is required because the trust had a period in the income year when it was not a member of a consolidated group or MEC group (a non-membership period) the partnership should complete a Non-individual PAYG payment summary schedule 2015 (NAT 3422) where amounts have been withheld from payments or distributions to the trust during the non-membership period.