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 14-210   WHETHER AN ENTITY IS A RELEVANT FOREIGN RESIDENT  

Is the entity a foreign resident at the time of the transaction?

14-210(1)  
This subsection applies to an entity at the time a transaction is entered into if, at that time:


(a) you know that the entity is a foreign resident; or


(b) you reasonably believe that the entity is a foreign resident; or


(c) you do not reasonably believe that the entity is an Australian resident, and either:


(i) the entity has an address outside Australia (according to any record that is in your possession, or is kept or maintained on your behalf, about the transaction); or

(ii) you are authorised to provide a related financial benefit to a place outside Australia (whether to the entity or to anyone else); or


(d) the entity has a connection outside Australia of a kind specified in the regulations; or


(e) the *CGT asset to which the transaction relates is:


(i) *taxable Australian real property; or

(ii) an *indirect Australian real property interest, the holding of which causes a company title interest (within the meaning of Part X of the Income Tax Assessment Act 1936 ) to arise.
Note:

This subsection is relevant to whether you must pay an amount to the Commissioner under section 14-200 .

Exception - the entity gives you a clearance certificate

14-210(2)  
Despite subsection (1), that subsection does not apply to the entity in relation to the transaction if:


(a) before you pay the Commissioner under section 14-200 in relation to the *CGT asset to which the transaction relates, the entity gives you a certificate about the entity that:


(i) was issued under subsection 14-220(1) ; and

(ii) is for a period covering the time the transaction is entered into; and


(b) the CGT asset is of a kind described in paragraph (1)(e) of this section. Exception - the entity gives you a residency or interests declaration

14-210(3)  
Despite subsection (1), that subsection does not apply to the entity in relation to the transaction if:


(a) before you pay the Commissioner under section 14-200 in relation to the *CGT asset to which the transaction relates, the entity gives you a declaration that:


(i) is about the entity or the CGT asset; and

(ii) was given under subsection 14-225(1) or (2) ; and

(iii) is for a period covering the time the transaction is entered into; and


(b) when you are given the declaration, you do not know the declaration to be false; and


(c) for a declaration given under subsection 14-225(1) - the CGT asset is not of a kind described in paragraph (1)(e) of this section.




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