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.
You must pay to the Commissioner an amount if:
(a) you become the owner of a *CGT asset as a result of *acquiring it from one or more entities under one or more transactions; and
(b) subsection 14-210(1) (about foreign residents) applies to at least one of those entities at the time one of those transactions is entered into; and
(c) at that time, the CGT asset is:
(i) *taxable Australian real property; or
(ii) an *indirect Australian real property interest; or
(iii) an option or right to acquire such property or such an interest;
unless a transaction referred to in paragraph (a) is excluded under section 14-215 .
You must pay the amount on account of income tax possibly payable by the entities on their capital proceeds resulting from your acquisition of the CGT asset.14-200(2)
You must pay the amount to the Commissioner on or before the day you became the *CGT asset ' s owner.
There are penalties for failing to pay the amount (see Division 16 ).14-200(3)
The amount to be paid to the Commissioner is:
(a) unless paragraph (b) applies - an amount equal to 12.5% of:
(i) the first element of the *CGT asset ' s *cost base just after the *acquisition, ignoring paragraphs 112-36(1)(b) and (c) of the Income Tax Assessment Act 1997 (about the effect of look-through earnout rights); less
(ii) if the acquisition is the result of you exercising an option - any payment you made, and the *market value of any property you gave, for the option (or to renew or extend it); or
(b) the varied amount applying under section 14-235 .
This section does not apply if the amount that would otherwise be payable is nil.