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.
A transaction that results in the *acquisition of a *CGT asset is excluded under this section if:
(a) just after the transaction, the CGT asset:
(i) is *taxable Australian real property; or
and the *market value of the CGT asset is less than $750,000; or
(ii) is 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;
(b) the transaction is on an *approved stock exchange; or
(c) the transaction is conducted using a crossing system (within the meaning of the *market integrity rules); or
(d) an amount is already required to be withheld (other than under Subdivision 14-E ) from a *withholding payment relating to the transaction; or
(e) subsection 26BC(3) of the Income Tax Assessment Act 1936 (about securities lending arrangements) applies in relation to the transaction as a result of the transaction being covered by subparagraph (a)(ii) of that subsection; or
(f) any of the entities to which subsection 14-210(1) (about foreign residents) applies at the time of the transaction:
(i) is a company for which any of the conditions in paragraph 161A(1)(a) of the Corporations Act 2001 (about insolvency and external administration) is satisfied; or
(ii) is, under a *foreign law, in the same or a similar position to a company covered by subparagraph (i); or
(g) the transaction arises from any of the following:
(i) the administration of the estate of a bankrupt;
(ii) a composition or scheme of arrangement accepted under Division 6 of Part IV of the Bankruptcy Act 1966 ;
(iii) a debt agreement under Part IX of that Act;
(iv) a personal insolvency agreement under Part X of that Act;
(v) circumstances that are, under a foreign law, the same or similar to those in any of the above subparagraphs.
This section is relevant to whether you must pay an amount to the Commissioner under section 14-200 .
For the purposes of paragraph (1)(a), if:
(a) the *CGT asset is an interest in real property, or an interest in a *mining, quarrying or prospecting right; and
(b) just after the transaction, there are one or more similar interests in the same real property or right;
treat the *market value of the CGT asset just after the transaction as including the market value of each of those similar interests.14-215(3)
Without limiting subsection (2):
(a) treat an interest as being similar to the *CGT asset if it is specified in regulations made for the purposes of this paragraph in relation to CGT assets of that kind; and
(b) treat an interest as not being similar to the CGT asset if it is specified in regulations made for the purposes of this paragraph in relation to CGT assets of that kind.