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.
An entity is entitled to a credit if:
(a) the entity ' s *ordinary income or *statutory income includes an amount that is represented by or reasonably attributable to a *fund payment; and
(b) the entity has borne all or part of:
(i) an *amount withheld from the payment under Subdivision 12-H ; or
(ii) an amount paid under Division 12A in respect of the fund payment.
The amount of the credit is that amount or part. 18-32(3)
Subsection (4) applies if:
(a) all or part of an amount (the fund payment part ) is represented by a payment that is a *fund payment; and
(b) under subsection 840-805(4A) of the Income Tax Assessment Act 1997 , a *foreign pension fund is taken, in respect of the fund payment part, to be a beneficiary in its own right, and not a beneficiary in the capacity of the trustee of another trust; and
(c) there is an *amount withheld from the fund payment under Subdivision 12-H .
For the purposes of paragraph (1)(b):
(a) treat the *foreign pension fund as having borne all or part of the amount withheld; and
(b) treat a beneficiary of the foreign pension fund as not having borne all or part of the amount withheld.