TAXATION ADMINISTRATION ACT 1953
Note: See section 3AA .Chapter 2 - Collection, recovery and administration of income tax
Note: A Commissioner ' s Remedial Power (CRP 2017/1) is relevant to this part of the tax law. Taxation Administration (Remedial Power - Foreign Resident Capital Gains Withholding) Determination 2017 (F2017L00992) modifies the operation of s 18-15 , 18-20 and 18-25 in Sch 1 to the Taxation Administration Act 1953 as follows:
To the extent that an entity ' s entitlement to a credit referred to in s 18-15 , 18-20 or 18-25 in Sch 1 to TAA is in respect of an amount paid to the Commissioner under Subdiv 14-D of Sch 1 to TAA, treat the entitlement as arising in the income year in which the transaction causing that application of Subdiv 14-D is recognised for income tax purposes for the entity. The modification applies in respect of transactions entered into on or after 1 July 2016.
An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to TAA to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
The rules set out in sections 18-15 , 18-20 and 18-25 do not apply to an *amount withheld from a *withholding payment that is covered by:
(a) Subdivision 12-F (Dividend, interest and royalty payments); or
(b) Subdivision 12-FA (Departing Australia superannuation payments); or
(c) Subdivision 12-FC (Seasonal Labour Mobility Program); or
(d) section 12-320 (Mining payments); or
(e) Subdivision 12-H (Distributions of withholding MIT income); or
(f) Division 13 (Alienated personal services payments); or
(g) Subdivision 14-E (GST payable on taxable supplies of certain real property).
If an entity withholds an amount from a *withholding payment as required by section 12-317 , apply sections 18-15 , 18-20 and 18-25 in relation to the payment as if the payment had been made to the likely foreign recipient mentioned in section 12-317 (instead of to the intermediary mentioned in that section).
If an entity withholds an amount from a *withholding payment as required by section 12-325 (natural resource payments), apply sections 18-15 , 18-20 and 18-25 to the payment as if the entity had withheld only so much of that amount as was withheld in respect of tax.
Section 18-55 provides a credit for amounts withheld in respect of petroleum resource rent tax.