TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12 - Payments from which amounts must be withheld  

Subdivision 12-B - Payments for work and services  

SECTION 12-55   VOLUNTARY AGREEMENT TO WITHHOLD  

12-55(1)  
An entity must withhold an amount from a payment it makes to an individual if:

(a) the payment is made under an *arrangement the performance of which, in whole or in part, involves the performance of work or services (whether or not by the individual); and

(b) no other provision of this Division requires the entity to withhold an amount from the payment; and

(c) the entity and the individual are parties to an agreement (the voluntary agreement ) that is in the *approved form and states that this section covers payments under the arrangement mentioned in paragraph (a), or under a series of such arrangements that includes that arrangement; and

(d) the individual has an *ABN that is in force and is *quoted in that agreement.

For exceptions, see section 12-1 .

12-55(2)  
Each party must keep a copy of the voluntary agreement from when it is made until 5 years after the making of the last payment covered by the agreement.

Penalty: 30 penalty units.

Note:

See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

12-55(2A)  
An offence under subsection (2) is an offence of strict liability.

Note:

For strict liability , see section 6.1 of the Criminal Code .

12-55(3)  
A party to the voluntary agreement may terminate it at any time by notifying the other party in writing.