Budget Savings (Omnibus) Act 2016 (55 of 2016)
Schedule 23 Single touch payroll reporting
Part 1 Reporting by employers
Division 2 Other amendments
Taxation Administration Act 1953
4 After section 8AAZLGA
8AAZLGB Retaining refunds until notification under Division 389 or ascertainment of liability
Commissioner may retain an amount
(1) The Commissioner may retain an amount that he or she otherwise would have to refund to an entity under section 8AAZLF, if:
(a) the Commissioner reasonably believes that the entity has made a payment as a result of which the entity:
(i) is, or will be, required to notify the Commissioner under section 389-5 in Schedule 1; or
(ii) may notify the Commissioner under section 389-15 in that Schedule; and
(b) the entity has not notified the Commissioner of the amount under that section; and
(c) the notification affects or may affect the amount that the Commissioner refunds to the entity.
(2) The Commissioner must inform the entity that he or she has retained the amount under this section. He or she must do so within 14 days after the day on which the relevant RBA surplus or credit arose.
How long the amount may be retained
(3) The Commissioner may retain the amount until:
(a) the entity has given the Commissioner that notification (including notification of a nil amount); or
(b) if subparagraph (1)(a)(i) applied - the Commissioner becomes reasonably satisfied that the entity is not required to give that notification; or
(c) the Commissioner becomes reasonably satisfied that the entity does not have a liability (a PAYGW liability ) to pay to the Commissioner an amount of a kind referred to in item 1 of the table in subsection 389-5(1) in Schedule 1; or
(d) the Commissioner ascertains (including as a result of making an estimate) the total amount of the entity's outstanding PAYGW liabilities;
whichever happens first.
Note: Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in making the payment under subsection (3).
Objecting to the decision to retain the amount
(4) The entity may object to a decision of the Commissioner to retain the amount under this section in the manner set out in Part IVC, if the entity is dissatisfied with the decision.
Note: For the start of the period for objecting to the decision, see paragraph 14ZW(1)(aae) and subsection 14ZW(4).
(5) Before the end of the 7 days after the start of the period during which, under section 14ZW, the entity may object to the decision, the Commissioner must notify the entity, in writing, that the entity may object to the decision.
(6) A failure to comply with subsection (5) does not affect the validity of the decision.