INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3B - Collection of tax in respect of certain payments  

Subdivision B - Deductions from certain payments  

SECTION 221YHZB   PERSON MAKING NATURAL RESOURCE PAYMENT TO NON-RESIDENT TO ASCERTAIN AMOUNT TO BE DEDUCTED IN RESPECT OF TAX  

221YHZB(1)   [Restrictions on payments]  

Subject to subsection (4), a person who is liable to make a natural resource payment to a non-resident shall not make such a payment to the non-resident before 1 July 2000 unless:

(a) the person has given to the Commissioner a statement in writing setting out the amount of the natural resource payment due to the non-resident; and

(b) the Commissioner has subsequently given to the person a notice in writing setting out the amount (if any) required to be deducted from the payment in respect of tax due, or which may become due, by the non-resident.

Penalty: $2,000.

221YHZB(2)   [Defence to prosecution]  

In a prosecution of a person for an offence against subsection (1) in relation to a payment made to a non-resident, it is a defence if the person proves that, at the time of making the payment, the person:

(a) did not know; and

(b) could not reasonably have been expected to have known;

that the payment was a payment made to a non-resident.

221YHZB(3)   [Recovery of amount additional to penalty on conviction]  

Where a person (in this subsection referred to as the ``convicted person'' ) is convicted before a court of an offence against subsection (1) in relation to a payment, the court may, in addition to imposing a penalty on the convicted person for the offence, order the convicted person to pay to the Commissioner an amount not exceeding the amount that, in the opinion of the court, might reasonably have been expected to be required to be deducted from that payment.

221YHZB(4)   [Exemption certificate]  

The Commissioner may issue to a person a certificate exempting the person from compliance with subsection (1) in respect of a specified payment, or payments included in a specified class of payments, to a non-resident.

221YHZB(5)   [Conditions of exemption]  

A certificate issued to a person under subsection (4) exempting the person from compliance with subsection (1) in respect of a specified payment, or payments included in a specified class of payments, to a non-resident is subject to the following conditions:

(a) a condition that the person shall, before making such a payment, deduct from the payment an amount (if any) ascertained in accordance with the certificate, in respect of tax due, or which may become due, by the non-resident;

(b) such other conditions (if any) as are specified in the certificate;

but a person is not guilty of an offence against subsection (1) by reason of a contravention of such a condition.

221YHZB(6)   [Revocation or variation of exemption certificate]  

The Commissioner may, by notice in writing served on the holder of a certificate issued under subsection (4);

(a) revoke the certificate;

(b) impose one or more further conditions to which the certificate is subject;

(c) vary the condition referred to in paragraph (5)(a); or

(d) vary or revoke a condition referred to in paragraph (5)(b).

221YHZB(7)   [Contravention of exemption condition]  

Without limiting the generality of subsection (6), where the holder of a certificate issued under subsection (4) contravenes a condition of the certificate, the Commissioner may revoke the certificate under subsection (6).

221YHZB(8)   [No offence under corresponding tax law]  

A contravention of subsection (1) does not constitute an offence against section 8C of the Taxation Administration Act 1953 .