TAXATION ADMINISTRATION ACT 1953
Note: See section 3AA .Chapter 2 - Collection, recovery and administration of income tax
An entity (except an *exempt Australian government agency) that:
(a) fails to withhold an amount as required by Division 12 ; or
(b) fails to pay an amount to the Commissioner as required by Division 12A , 13 or 14 ;
is liable to pay to the Commissioner a penalty equal to that amount.
An entity may become liable under this section in respect of a payment it made or received that is taken to have been subject to withholding tax as a result of a Commissioner ' s determination under subsection 177F(2A) of the Income Tax Assessment Act 1936 (see also subsection 177F(2F) of that Act).
Division 298 in this Schedule contains machinery provisions for administrative penalties.
Subsection (1) does not apply in relation to a failure to pay an amount to the Commissioner as required by Subdivision 14-E if:
(a) the amount relates to a *taxable supply of *new residential premises (other than *commercial residential premises); and
(b) the entity was given a notice under section 14-255 :
(i) stating that the premises are not new residential premises; or
(ii) indicating that the entity will not be required to pay an amount to the Commissioner under section 14-250 in relation to the supply; and
(c) at the time *consideration for the supply (other than consideration provided as a deposit) is first provided, there was nothing in:
(i) the contract for the supply; or
that made it unreasonable for the entity to believe that the statement or indication was correct.
(ii) any other circumstances relating to the supply;
Subsection (1) does not apply in relation to a failure to pay an amount to the Commissioner in relation to a *taxable supply as required by Subdivision 14-E if:
(a) the entity required to pay the amount in relation to the supply gives the supplier a bank cheque on or before the day *consideration for the supply (other than consideration provided as a deposit) is first provided; and
(b) the bank cheque is for the amount the entity is required to pay to the Commissioner, and is payable to the Commissioner.