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 14 - Benefits, gains and taxable supplies for which amounts must be paid to the Commissioner  

Subdivision 14-D - Capital proceeds involving foreign residents and taxable Australian property  

SECTION 14-200   CERTAIN ACQUISITIONS OF TAXABLE AUSTRALIAN PROPERTY FROM FOREIGN RESIDENTS  

14-200(1)  
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 .

Note:

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.

Note:

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 .

14-200(4)  
This section does not apply if the amount that would otherwise be payable is nil.




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