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 give a written notice to the individual on a particular day (the credit notice day ) if, had the discharge mentioned in paragraph 18-165(c) (and all previous discharges of the company ' s liability mentioned in that paragraph) occurred before the tax notice day:
(a) 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
(b) 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.
Subsection 18-180(2) provides that the Commissioner must not give a notice to the individual in certain circumstances.
The amount of PAYG withholding non-compliance tax may be limited by:
In working out the actual amount of the tax for the purposes of paragraph (1)(b), have regard to other credits to which the individual is entitled under this section or section 18-175 . See subsection 18-180(1) .Director or associate entitled to credit if Commissioner gives notice 18-170(2)
The individual is entitled to a credit if the Commissioner gives a written notice to the individual under subsection (1). 18-170(3)
The individual becomes entitled to the credit on the day the Commissioner gives the notice to the individual. Amount of credit 18-170(4)
The amount of the credit is the amount stated in the notice. 18-170(5)
In a case to which paragraph (1)(a) applies, the amount stated must be the amount of the * PAYG withholding non-compliance tax. 18-170(6)
In any other case, the amount stated:
(a) must not exceed the amount of the * PAYG withholding non-compliance tax; and
(b) must not exceed the amount of the discharge mentioned in paragraph 18-165(c) ; and
(c) must not be less than the amount by which:
(i) the amount of the PAYG withholding non-compliance tax; exceeds
(ii) the amount that would have been the amount of the PAYG withholding non-compliance tax had the discharge mentioned in paragraph 18-165(c) (and all previous discharges of the company ' s liability mentioned in that paragraph) occurred before the tax notice day.
In determining the amount to state in the notice in a case to which paragraph (1)(a) does not apply, the Commissioner must have regard to what is fair and reasonable in the circumstances.