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.
The Commissioner must not commence proceedings to recover:
(a) the * PAYG withholding non-compliance tax an individual must pay for an income year in relation to a company as mentioned in section 18-125 or 18-135 ; or
(b) any related * general interest charge payable under section 18-150 ; 18-140(2)
The Commissioner may only give the notice if the Commissioner is satisfied, on the basis of information available to the Commissioner, that it is fair and reasonable for the individual to pay * PAYG withholding non-compliance tax in relation to the company for the income year. 18-140(3)
The Commissioner must not give the notice on a day if, on that day:
(a) the individual; or
(b) in a case to which section 18-135 applies - the director mentioned in that section;
is liable to pay to the Commissioner a penalty under Division 269 because the company has not complied with the obligation mentioned in item 1 of the table in subsection 269-10(1) to pay to the Commissioner an * amount withheld to which paragraph 18-125(1)(b) or 18-135(1)(b) applies.18-140(4)
The notice must specify:
(a) the company; and
(b) the income year; and
(c) the amount of the * PAYG withholding non-compliance tax the individual must pay. Effect of compliance between non-compliance day and notice day 18-140(5)
Subsections (6) and (7) apply if:
(a) the company ' s liability to pay the total of the amounts mentioned in paragraph 18-125(1)(c) or 18-135(1)(c) to the Commissioner is discharged to any extent during the period:
(i) starting on the day after the non-compliance day; and
(ii) ending on the day before the day the Commissioner gives the notice under this section to the individual; and
(b) had all discharges of the company ' s liability occurring during that period occurred before the non-compliance day:
(i) the individual would not have been required to pay the * PAYG withholding non-compliance tax in relation to the company for the income year; or
(ii) the amount of PAYG withholding non-compliance tax the individual would have been required to pay would have been less than the actual amount of PAYG withholding non-compliance tax.
The amount of the * PAYG withholding non-compliance tax the individual must pay is reduced:
(a) in a case to which subparagraph (5)(b)(i) applies - to nil; or
(b) otherwise - to the amount of PAYG withholding non-compliance tax the individual would have been required to pay as mentioned in subparagraph (5)(b)(ii). 18-140(7)
The amount of the * PAYG withholding non-compliance tax the individual must pay is treated as always having been that amount as reduced under subsection (6).