Income Tax Assessment Act 1936

PART VA - TAX FILE NUMBERS  

Division 1 - Preliminary  

SECTION 202  

202   OBJECTS OF THIS PART  

The objects of this Part are, by means of the establishment of a system of tax file numbers:

(a)    

to increase the effectiveness and efficiency of the matching of information contained in reports given to the Commissioner under this Act or the regulations with information disclosed in income tax returns by taxpayers; and

(b)    to prevent evasion of liability to taxation under the laws of the Commonwealth relating to income tax; and

(c)    

to facilitate the administration of any legislation enacted by the Parliament under which benefits are provided by the Commonwealth to students in relation to contributions or charges payable by students in respect of the costs of courses of study provided by institutions of higher education or vocational education and training, or in respect of the costs of other services and amenities available to students in connection with such institutions; and

(d)    

to facilitate the administration of any legislation enacted by the Parliament to impose charge equal to any shortfall in the amount spent by employers on training employees; and

(e)    

to facilitate the administration of a provision of an Act, being a provision which authorises the collection of a tax file number as a condition to the giving of personal assistance within the meaning of the Data-matching Program (Assistance and Tax) Act 1990 ; and

(f)    

to facilitate the administration of the Data-matching Program (Assistance and Tax) Act 1990 ; and

(g)    

to facilitate the administration of any legislation enacted by the Parliament in relation to the imposition of charge on an employer ' s superannuation guarantee shortfall; and

(ga)    

to facilitate the administration of the Child Support (Assessment) Act 1989 and the Child Support (Registration and Collection) Act 1988 ; and

(gaa)    

to facilitate the administration of Part 2 of the Student Assistance Act 1973 , which deals with ABSTUDY student start-up loans and debts in relation to those loans; and

(h)    

to facilitate the administration of Division 6 of Part 4A of the Student Assistance Act 1973 ; and

(haa) (Repealed by No 143 of 2015)

(hab)    

to facilitate the administration of Chapter 2AA of the Social Security Act 1991 , which deals with student start-up loans and debts in relation to those loans; and

(hac)    

to facilitate the administration of the Australian Apprenticeship Support Loans Act 2014 ; and

(ha)    

to facilitate the administration of:

(i) Part 2B.3 of the Social Security Act 1991 ; or

(ii) a provision of an instrument under Chapter 2B of the Social Security Act 1991 (as in force before the commencement of Schedule 2 to the Youth Allowance Consolidation Act 2000 ) establishing a Student Financial Supplement Scheme, being a provision relating to the recovery through the taxation system of a student ' s outstanding indebtedness in respect of financial supplement paid to the student in accordance with the Scheme; and

(hb)    

to facilitate the administration of Part 3.18 of the Social Security Act 1991 ; and

(hc)    

to facilitate the administration of Division 11A of Part IIIB of the Veterans ' Entitlements Act 1986 ; and

(i) to facilitate:

(i) the administration of Part 25A of the Superannuation Industry (Supervision) Act 1993 in relation to individuals; and

(ii) the administration of that Act in relation to superannuation entities (within the meaning of that Act) or regulated exempt public sector superannuation schemes (within the meaning of Part 25A of that Act); and

(ia)    

to facilitate the administration of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (including the administration of registers by State or Territory authorities (within the meaning of that Act) in accordance with section 18 of that Act); and

(j)    

to facilitate the administration of the Small Superannuation Accounts Act 1995 ; and

(k) (Repealed by No 128 of 1999)

(ka)    to facilitate:

(i) the administration of Part 11 of the Retirement Savings Accounts Act 1997 in relation to individuals; and

(ii) the administration ofthat Act in relation to RSA providers; and

(kb) (Repealed by No 70 of 2015)

(l)    

to facilitate the administration of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 and the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 ; and

(la)    

to facilitate the administration of the Paid Parental Leave Act 2010 ; and

(m)    to facilitate the administration of the A New Tax System (Family Assistance) (Administration) Act 1999 and section 5 of the A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 1) 1999 ; and

(n) (Repealed by No 145 of 2010)

(o)    

to facilitate the administration of section 204A of the Social Security (Administration) Act 1999 ; and

(p)    

to facilitate the administration of the fuel tax law (within the meaning of section 110-5 of the Fuel Tax Act 2006 ); and

(q)    

to facilitate the administration of Division 2AA of Part II of the Banking Act 1959 ; and

(r)    

to facilitate investigations under the Inspector-General of Taxation Act 2003 (and provisions of the Ombudsman Act 1976 to the extent that they are applied by the Inspector-General of Taxation Act 2003 ); and

(s)    

to facilitate the administration of Subdivision 14-D in Schedule 1 to the Taxation Administration Act 1953 ; and

(sa)    

to facilitate the administration of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 ; and

(t)    to facilitate the administration of the Migration Act 1958 ; and

(u)    

to facilitate the administration of Part 9.1A of the Corporations Act 2001 and Part 6-7A of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 .

SECTION 202A  

202A   INTERPRETATION  

In this Part, unless the contrary intention appears:

alienated personal services payment
has the meaning given by section 13-10 in Schedule 1 to the Taxation Administration Act 1953 .

applicant
, in relation to an application for the issue of a tax file number, means the person specified in the application as the person by whom or on whose behalf the issue of a tax file number is sought;

approved form
(Repealed by Act No 12 of 2012)

bank
means:

(a) the Reserve Bank of Australia;

(b) a body corporate that is an ADI (authorised deposit-taking institution) for the purposes of the Banking Act 1959 ; or

(c) a person who carries on State banking within the meaning of paragraph 51(xiii) of the Constitution.

building society
(Repealed by Act No 44 of 1999)

child
means a person who is less than 16 years of age.

co-operative housing society
means a society registered or incorporated as a co-operative housing society or similar society under a law of a State or Territory.

credit union
(Repealed by Act No 44 of 1999)

data processing device
means any article or material from which information is capable of being reproduced with or without the aid of any other article or device.

eligible PAYG payment
means:

(a) a payment from which an amount must be withheld under Subdivision 12-B (other than section 12-55 ), Subdivision 12-C or Subdivision 12-D in Schedule 1 to the Taxation Administration Act 1953 ; or

(aa) an alienated personal services payment in respect of which Division 13 in Schedule 1 to the Taxation Administration Act 1953 requires an amount to be paid to the Commissioner; or

(b) a non-cash benefit in respect of which an amount is payable to the Commissioner under section 14-5 in Schedule 1 to the Taxation Administration Act 1953 because of the application of that section in relation to Subdivision 12-B , 12-C or 12-D of that Schedule;

and has a meaning affected by section 202AA .

employee
(Repealed by Act No 179 of 1999)

employer
(Repealed by Act No 179 of 1999)

employment declaration
(Repealed by Act No 179 of 1999)

entity
means a body corporate or unincorporated association, but does not include a natural person or a partnership;

financial institution
means:

(a) a bank; or

(b) a co-operative housing society.

(c) (Repealed by Act No 44 of 1999)

government body
means the Commonwealth, a State, a Territory or an authority of the Commonwealth or of a State or Territory.

interest-bearing account
means any facility, other than an RSA, by which a financial institution:

(a) does any one or more of the following:

(i) accepts deposits of money to the credit of a person;

(ii) allows withdrawals from the money deposited;

(iii) pays cheques or payment orders drawn on the institution by, or collects cheques or payment orders on behalf of, the person; and

(b) pays or credits interest, or amounts in the nature of interest, on the balance standing to the credit of the person from time to time.

interest-bearing deposit
means a deposit of money, other than into an RSA, with a financial institution, in consideration of which the financial institution pays or credits interest, or amounts in the nature of interest, to a person.

investment body
means a person who is an investment body within the meaning of section 202D .

investment to which this Part applies
means an investment of a kind mentioned in section 202D .

investor
means a person who is an investor within the meaning of section 202D .

passport
(Repealed by No 122 of 2015)

payer
means:

(a) a person who makes an eligible PAYG payment (other than an alienated personal services payment), or is likely to make such a payment; or

(b) a person who receives an alienated personal services payment, or is likely to receive such a payment.

person
includes a partnership, a company and a person in the capacity of trustee of a trust estate.

public company
means a public company within the meaning of the Corporations Act 2001 .

recently-arrived visitor to Australia
(Omitted by No 57 of 1990)

recipient
means:

(a) a person who receives an eligible PAYG payment (other than an alienated personal services payment), or is likely to receive such a payment; or

(b) a person in relation to whose personal services income (within the meaning of the Income Tax Assessment Act 1997 ) a payer receives an alienated personal services payment, or is likely to receive such a payment.

securities dealer
has the same meaning as in the Income Tax Assessment Act 1997 .

solicitor
means a solicitor, barrister and solicitor or legal practitioner of the High Court or of the Supreme Court of a State or Territory.

tax file number
, in relation to a person, means a number issued to the person by the Commissioner, being a number that is either:

(a) a number issued to the person under Division 2 ; or

(aa) a number issued to a person under section 44 or 48 of the Higher Education Funding Act 1988 ; or

(b) a number notified, before the commencement of this section, to the person as the person ' s income tax file number.

TFN declaration
means a declaration made for the purposes of section 202C .

unit trust
means a trust to which a unit trust scheme relates, and includes:

(a) a cash management trust;

(b) a property trust;

(c) an arrangement declared by the Minister under section 202AB to be a unit trust for the purposes of this definition;

but does not include any arrangement declared by the Minister under section 202AB not to be a unit trust for the purposes of this definition.

unit trust scheme
means an arrangement made for the purpose, or having the effect, of providing, for a person who has funds available for investment, facilities for participation by the person, as a beneficiary under a trust, in any profit or income arising from the acquisition, holding, management or disposal of property under the trust.

SECTION 202AA  

202AA   DEFINITION OF ELIGIBLE PAYG PAYMENT  

In applying the definition of eligible PAYG payment in section 202A :

(a) a requirement to withhold a nil amount is treated as a requirement to withhold an amount; and

(b) a requirement to pay a nil amount to the Commissioner is treated as a requirement to pay an amount to the Commissioner; and

(c) the following provisions in Schedule 1 to the Taxation Administration Act 1953 are to be disregarded, namely: section 12-1 , subsection 12-45(2) , subsection 12-110(2) and subsection 12-115(2) .

SECTION 202AB  

202AB   DECLARATION THAT AN ARRANGEMENT IS, OR IS NOT, A UNIT TRUST  
The Minister may, by legislative instrument, declare that an arrangement is, or is not, a unit trust for the purposes of the definition of that term in section 202A .

Division 2 - Issuing of tax file numbers  

SECTION 202B   APPLICATION FOR TAX FILE NUMBER  

202B(1)    
A person may apply to the Commissioner for the issue of a tax file number.

202B(2)    

An application must be in the approved form. The approved form may require the application to include documentary evidence of the applicant ' s identity.

202B(3)    
(Repealed by No 64 of 2020)

202B(4)    
(Repealed by No 64 of 2020)

SECTION 202BA   ISSUING OF TAX FILE NUMBERS  

202BA(1)   [When tax file number may be issued]  

Subject to subsection (3), if, on an application for a tax file number, the Commissioner is satisfied that the applicant's identity has been established, the Commissioner shall issue a tax file number to the applicant.

202BA(2)   [Refusal of application where identity in doubt]  

If, on such an application, the Commissioner is not satisfied as to the applicant's true identity, the Commissioner may refuse the application.

202BA(3)   [Other grounds for refusal]  

If, on such an application, the Commissioner is satisfied that:

(a) the applicant already has a tax file number; or

(b) a notice under section 202BD in relation to the applicant is in force;

the Commissioner shall refuse the application.

202BA(4)   [Tax file number issued without application]  

The Commissioner may, without an application being made, issue a tax file number to a person whenever it is necessary to do so in connection with the performance of a function of the Commissioner under a law of the Commonwealth relating to taxation.

202BA(5)   [Notice of number]  

The Commissioner shall issue a tax file number to a person by giving the person a written notice of the number.

202BA(6)   [Notice of refusal]  

The Commissioner shall refuse an application for a tax file number by giving the applicant a written notice of the refusal and of the reasons for the refusal.

SECTION 202BB  

202BB   CURRENT TAX FILE NUMBER  

On the issue of a tax file number to a person, any tax file number previously issued to the person and not already cancelled or withdrawn ceases to have effect.

SECTION 202BC   DEEMED REFUSAL BY COMMISSIONER  

202BC(1)   [Notice that application deemed refused]  

If the Commissioner has not decided an application for a tax file number within 28 days after the application is made, the applicant may, at any time, give to the Commissioner written notice that the applicant wishes to treat the application as having been refused.

202BC(2)   [Where sec 202BC(1) inapplicable]  

If in the application the applicant has stated the name and address of one or more payers of the applicant, subsection (1) does not apply at a particular time if at that time a notice has been issued to each such payer under section 202BD in relation to the applicant and each such notice is in force.

202BC(3)   [Deemed date of refusal]  

For the purposes of Division 6 , where an applicant gives notice under subsection (1), the Commissioner shall be taken to have refused the application for a tax file number on the day on which the notice was given.

SECTION 202BD   INTERIM NOTICES  

202BD(1)    

Where an application for a tax file number states the name and address of a payer of the applicant, the Commissioner may give to the payer a notice under this section in relation to the applicant.

202BD(2)    
The notice remains in force for the period of 28 days commencing on the day specified in the notice.

202BD(3)    
The notice shall specify:

(a) the applicant's name as shown in the application; and

(b) the last day of the period for which the notice remains in force.

202BD(4)    
On giving the notice, the Commissioner shall inform the applicant that the notice has been given.

202BD(5)    

The notice may be given to take effect on the expiration of a notice previously given to the payer under this section in relation to the applicant.

202BD(6)    

Where, while an application for a tax file number is pending, the applicant notifies the Commissioner, in writing, of the name and address of a payer of the applicant (being a payer whose name and address is not stated on the application), the payer's name and address shall, at the end of the period of 7 days after the notification, be taken to have been stated on the application.

SECTION 202BE   CANCELLATION OF TAX FILE NUMBERS  

202BE(1)   [Notice of cancellation]  

Where the Commissioner concludes that a tax file number was issued to a person under an identity that is not the person's true identity, the Commissioner may, by written notice given to the person, cancel the tax file number.

202BE(2)   [Reasons for cancellation]  

The Commissioner shall set out in the notice the reasons for the Commissioner's conclusion.

SECTION 202BF  

202BF   ALTERATION OF TAX FILE NUMBERS  

The Commissioner may, at any time, by written notice given to a person who has a tax file number:

(a) withdraw that number; and

(b) issue to the person a new tax file number in place of the withdrawn number.

Division 3 - Quotation of tax file numbers by recipients of eligible PAYG payments  

SECTION 202C   TFN DECLARATIONS BY RECIPIENTS OF ELIGIBLE PAYG PAYMENTS  

202C(1)    
A person who is a recipient of a payer, or expects to become a recipient of a payer, may make a TFN declaration in relation to the payer.

202C(2)    

To be effective, the declaration must be made to the payer or the Commissioner, and must be made in the approved form.

SECTION 202CA   OPERATION OF TFN DECLARATION  

202CA(1)    

Subject to this Division, a TFN declaration commences to have effect when it is made.

Note:

Under section 202CB , a TFN declaration is not effective unless the tax file number of the recipient is stated in the declaration.

202CA(1A)    

A TFN declaration ceases to have effect when the recipient makes another TFN declaration in relation to the payer.

202CA(1B)    

A TFN declaration ceases to have effect 12 months after it is made if no eligible PAYG payment is made by the payer to the recipient during that 12 month period.

202CA(1C)    

If:

(a) the payer makes an eligible PAYG payment to the recipient after the TFN declaration is made; and

(b) a period of 12 months then elapses without any further eligible PAYG payment being made by the payer to the recipient;

then the TFN declaration ceases to have effect at the end of that period of 12 months.

202CA(2)    

A TFN declaration to which a determination under subsection (3) applies ceases to have effect at the end of the day fixed by the determination.

202CA(3)    

The Commissioner may, by legislative instrument, determine that:

(a) all TFN declarations; or

(b) a specified class of TFN declarations;

shall cease to have effect at the end of the day specified in the determination.

202CA(4)    
(Repealed by No 64 of 2020)

SECTION 202CB   QUOTATION OF TAX FILE NUMBER IN TFN DECLARATION  

202CB(1)    

Subject to subsections (2) and (4) and subsection 202CE(2) , a TFN declaration is not effective for the purposes of this Part unless the tax file number of the recipient is stated in the declaration.

202CB(2)    

For the purposes of this Part, a recipient is taken to have stated his or her tax file number in a TFN declaration if the declaration includes a statement:

(a)    that an application by the recipient for a tax file number is pending; or

(b)    that the recipient has a tax file number but does not know what it is and has asked the Commissioner to inform him or her of the number.

202CB(3)    

Where:

(a)    a TFN declaration includes such a statement; and

(b)    the recipient who made the declaration fails to inform the payer of the recipient ' s tax file number within 28 days after making the declaration;

subsection (2) does not apply to the declaration in respect of any time after the end of the period of 28 days.

202CB(4)    

For the purposes of this Part, a recipient is taken to have stated his or her tax file number in a TFN declaration in relation to a payer while a notice under section 202BD given to the payer in relation to the recipient is in force.

202CB(5)    

If:

(a)    the tax file number of a recipient is withdrawn under section 202BF ; and

(b)    at the time of the withdrawal, the number is stated in a TFN declaration;

the declaration is taken to state the tax file number of the recipient in spite of the withdrawal of the number.

202CB(6)    

Subsections (2) to (4) do not apply to a TFN declaration given to the Student Assistance Secretary, to the Employment Secretary or to the Chief Executive Centrelink:

(a)    

by a person who is an applicant for an austudy payment, a jobseeker payment or a youth allowance under the Social Security Act 1991 ; or

(aaa)    by a person who is not a member of a couple and is an applicant for a parenting payment under the Social Security Act 1991 ; or

(aa) (Repealed by Act No 45 of 1998)

(b)    

by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, a payment referred to in paragraph (a) .

202CB(7)   Persons receiving benefits under Veterans ' Entitlements Act.  

Subsections (2) to (4) do not apply to a TFN declaration given to the Veterans ' Affairs Secretary:

(a)    by a person who is an applicant for a pension or allowance under the Veterans ' Entitlements Act 1986 ; or

(b)    

by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, a pension, veteran payment (within the meaning of that Act) or allowance under that Act.

202CB(8)   Persons receiving benefits under Military Rehabilitation and Compensation Act.  

Subsections (2) to (4) do not apply to a TFN declaration given to the Military Rehabilitation and Compensation Commission:

(a)    by a person who is an applicant for compensation or an allowance under the Military Rehabilitation and Compensation Act 2004 ; or

(b)    by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, such compensation or allowance.

SECTION 202CC  

202CC   MAKING A REPLACEMENT TFN DECLARATION IN PLACE OF AN INEFFECTIVE DECLARATION  

Nothing in this Division prevents a recipient making a new TFN declaration in place of a TFN declaration that is ineffective under subsection 202CB(1) .

SECTION 202CD   SENDING OF TFN DECLARATION TO COMMISSIONER  

202CD(1)   [Obligation of payer]  

Where a recipient gives a payer a TFN declaration, the payer shall:

(a) countersign the original of the declaration;

(b) within 14 days after the declaration is made, send the original to the office of a Deputy Commissioner; and

(c) retain the copy of the declaration in accordance with subsection (6).

Penalty: 10 penalty units.

202CD(2)    
(Repealed by No 179 of 1999)

202CD(3)    
(Repealed by No 179 of 1999)

202CD(4)   [Where tax file number not quoted]  

If:

(a) a TFN declaration, when given to a payer, does not quote the recipient's tax file number; and

(b) before the payer sends the declaration to the Deputy Commissioner, the recipient informs the payer of the recipient's tax file number;

the payer shall write the number on the declaration and on the copy.

Penalty: 10 penalty units.

202CD(5)   [Declaration deemed made by recipient]  

Where a tax file number has been written on a declaration under subsection (4), the declaration shall be regarded as stating that number as the tax file number of the recipient who made the declaration.

202CD(5A)   [Non-compliance penalty]  

A payer who fails to comply with subsection (1) or (4) is liable to pay to the Commissioner a penalty of 10 penalty units.

Note 1:

See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

Note 2:

Division 298 in Schedule 1 to the Taxation Administration Act 1953 contains machinery provisions relating to civil penalties.

202CD(6)   [Copy of TFN declaration]  

The payer shall retain the copy of a TFN declaration until the second 1 July after the day on which the declaration ceases to have effect.

SECTION 202CE   EFFECT OF INCORRECT QUOTATION OF TAX FILE NUMBER  

202CE(1)    

If the Commissioner is satisfied:

(a)    

that the tax file number stated in a TFN declaration:

(i) has been cancelled or withdrawn since the declaration was given; or

(ii) is otherwise wrong; and

(b)    

that the recipient has a tax file number;

the Commissioner may give to the payer concerned written notice of the incorrect statement and the recipient ' s tax file number.

202CE(2)    

If a notice is given under subsection (1) , the TFN declaration shall be regarded, for the purposes of this Part, as having always stated the recipient ' s tax file number.

202CE(3)    

If:

(a)    

the Commissioner is satisfied that the tax file number stated in a TFN declaration:

(i) has been cancelled since the declaration was given; or

(ii) is for any other reason not the recipient ' s tax file number; and

(b)    

the Commissioner is not satisfied that the recipient has a tax file number;

the Commissioner may, by written notice given to the payer, inform the payer accordingly.

202CE(4)    

A notice under subsection (3) takes effect on the day specified in the notice, being a day not earlier than the day on which a copy of the notice is given to the recipient under subsection (5) .

202CE(5)    

The Commissioner shall give a copy of any notice under subsection (3) to the recipient concerned, together with a written statement of the reasons for the decision to give the notice.

202CE(6)    

On and from the day on which a notice under subsection (3) takes effect, the TFN declaration concerned shall be taken not to state the tax file number of the recipient concerned.

202CE(7)    

Subsection (6) does not apply to a TFN declaration given to the Employment Secretary or to the Chief Executive Centrelink:

(a)    

by a person who is an applicant for an austudy payment, a jobseeker payment or a youth allowance under the Social Security Act 1991 ; or

(aaa)    by a person who is not a member of a couple and is an applicant for a parenting payment under the Social Security Act 1991 ; or

(aa) (Repealed by Act No 45 of 1998)

(b)   

by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, a payment referred to in paragraph (a) .

202CE(8)   Persons receiving benefits under Veterans ' Entitlements Act.  

Sub-section (6) does not apply to a TFN declaration given to the Veterans ' Affairs Secretary:

(a)    by a person who is an applicant for a pension or allowance under the Veterans ' Entitlements Act 1986 ; or

(b)    

by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, a pension, veteran payment (within the meaning of that Act) or allowance under that Act.

202CE(9)    

Subsection (6) does not apply to a TFN declaration given to the Military Rehabilitation and Compensation Commission:

(a)    by a person who is an applicant for compensation or an allowance under the Military Rehabilitation and Compensation Act 2004 ; or

(b)    by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, such compensation or allowance.

SECTION 202CEA   VALIDATION NOTICES  

202CEA(1)    
The Commissioner may give a payer a notice under subsection (2) if:

(a) the payer gives the Commissioner information that the payer believes to be:

(i) the full name, tax file number and date of birth of a person; or

(ii) the full name, tax file number, date of birth and address of a person; and

(b) the Commissioner is satisfied that:

(i) the person is a recipient of the payer; and

(ii) the recipient has made a TFN declaration in relation to the payer; and

(c) the Commissioner is satisfied, having regard to the information (if any) that the Commissioner has recorded for the tax file number given, that it is reasonable to give the notice.

202CEA(2)    
The notice must state whether or not the Commissioner is able to validate the information given.

202CEA(3)    
To avoid doubt, a notice that the Commissioner is not able to validate the information is not a notice under subsection 202CE(3) .

202CEA(4)    
If a person states his or her tax file number in a TFN declaration in relation to the payer, the payer may use the tax file number in a manner connecting it with the person ' s identity for the purpose of asking the Commissioner to validate information about the person under this section.

SECTION 202CF   PAYER MUST NOTIFY COMMISSIONER IF NO TFN DECLARATION BY RECIPIENT  

202CF(1)    
If, after the commencement of this section, a person (the payer ) commences a relationship with another person under which, or as a result of which, the payer will make (or will be likely to make) eligible PAYG payments to a person (the recipient ), whether or not the recipient is a party to the relationship, the payer must give notice to the Commissioner in the approved form, within 14 days after the commencement of the relationship, unless a TFN declaration made by the recipient to the payer is in effect at the end of that 14 day period.

202CF(1A)    

However, subsection (1) does not apply if the recipient ' s tax file number has been disclosed to the payer under section 202CG before the end of that 14 day period.

202CF(2)    
If, at the commencement of this section, a person (the payer ) has a relationship with another person under which, or as a result of which, the payer will make (or will be likely to make) eligible PAYG payments to a person (the recipient ), whether or not the recipient is a party to the relationship, the payer must give notice to the Commissioner in the approved form, not later than 31 October 2000, unless a TFN declaration made by the recipient to the payer is in effect on 31 October 2000.

202CF(3)    
A payer who fails to comply with subsection (1) or (2) is liable to pay to the Commissioner a penalty of 10 penalty units.

Note 1:

See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

Note 2:

Division 298 in Schedule 1 to the Taxation Administration Act 1953 contains machinery provisions relating to civil penalties.

SECTION 202CG  

202CG   DISCLOSING RECIPIENTS ' TAX FILE NUMBERS TO PAYERS  

A taxation officer (within the meaning of the Income Tax Assessment Act 1997 ) may disclose a recipient ' s tax file number to a payer of the recipient if:

(a) the recipient provided the number in a TFN declaration to the Commissioner in relation to the payer; or

(b) the recipient made a TFN declaration to the Commissioner in relation to the payer that included a statement referred to in subsection 202CB(2) .

Division 4 - Quotation of tax file numbers in connection with certain investments  

SECTION 202D   EXPLANATION OF TERMS: INVESTMENT, INVESTOR, INVESTMENT BODY  

202D(1A)    

This section:

(a) applies to a non-share equity interest in the same way as it applies to a share; and

(b) applies to an equity holder in the same way as it applies to a shareholder.

202D(1)    

Investments of the kinds mentioned in column 1 of the following table are investments to which this Part applies, whether or not the investments come into existence before the commencement of this section.

Table

Table

Item No.	Column 1 Investment	Column 2 Investor	Column 3 Investment body
1	Interest-bearing account with a financial institution	The person in whose name the account is held	The financial institution
2	Interest-bearing deposit (other than a deposit to the credit of an account) with a financial institution	The person in whose name the deposit is made	The financial institution
3	Loan of money to a government body or to a body corporate (other than a deposit to the credit of an account referred to in item 1, a deposit to which item 2 applies or a loan made in the ordinary course of the business of providing business or consumer finance by a person who carries on that business)	The person in whose name the money is lent	The government body or body corporate
4	Deposit of money with a solicitor for the purpose of:	The person for whose benefit the money is to be invested or lent	The solicitor
	(a)	being invested by the solicitor; or
	(b)	being lent under an agreement to be arranged by or on behalf of the solicitor
5	Units in a unit trust	The person in whose name the units are held	The manager of the unit trust
6	Shares in a public company	The shareholder	The company
7	An investment-related betting chance	The betting investor	The betting investment body

202D(2)    
In relation to an investment of a kind mentioned in column 1 of an item in the table in subsection (1):

(a) the investor is the person specified in column 2 of the item; and

(b) the investment body is the person specified in column 3 of the item.

202D(3)    
Where:

(a) by virtue of subsection (2), a body corporate other than an entrepot nominee company is the investor in relation to an investment; and

(b) another person is entitled to receive from the body corporate all or part of the income from the investment;

the person's right to receive the income or part of the income is an investment to which this Part applies.

202D(3A)    

In the case of an investment that is a relevant Part VA investment for the purposes of section 221YHZLA , subsection (3) does not apply to a person's right to receive income if:

(a) the body corporate concerned has received a payment of the kind referred to in paragraph 221YHZLA(2)(a) ; and

(b) the circumstances referred to in subparagraph 221YHZLA(2)(c)(i) or (ii) in relation to an applicant exist in relation to the body corporate.

202D(4)    
In relation to an investment referred to in subsection (3):

(a) the person entitled to receive income is the investor; and

(b) the body corporate is the investment body.

202D(5)    
Subsection (4) does not affect a person's status or obligations as an investor by virtue of subsection (2).

202D(6)    

In determining whether a person in the capacity of trustee of a trust estate is an investor in relation to an investment, it is irrelevant that the name of the trust estate, the name of any actual or potential beneficiary or any other indication of trust is shown on any documentation in connection with the investment.

202D(7)    

Subsection (6) is enacted for the guidance and information of investors and investment bodies and does not, by implication, affect the meaning of other provisions of this Act dealing with trustees and trust estates.

202D(8)    

If subparagraph 26AJ(1)(a)(ii) and paragraphs 26AJ(1)(b), (c), (d), (e), (f) and (g) apply in relation to the payment or crediting of an amount to a person, being the taxpayer referred to in subsection 26AJ(1) , then:

(a) for the purposes of this section:

(i) the betting chance referred to in paragraph 26AJ(1)(c) is an investment-related betting chance; and

(ii) the person is the betting investor in relation to the investment-related betting chance; and

(iii) the investment body referred to in paragraph 26AJ(1)(c) is the betting investment body in relation to the investment-related betting chance; and

(b) for the purposes of this Part, and for the purposes of Subdivision 12-E in Schedule 1 to the Taxation Administration Act 1953 :

(i) the betting chance referred to in paragraph 26AJ(1)(c) is taken to be an investment; and

(ii) the amount paid or credited is taken to be income in respect of the investment.

202D(9)    

For the purposes of subsection (3), an entrepot nominee company is a body corporate that is:

(a) controlled solely by a securities dealer or by 2 or more persons each of whom is a securities dealer; and

(b) operated for the sole purpose of facilitating settlement of security transactions.

FORMER SECTION 202DA  

202DA   PHASING-IN PERIOD FOR DIVISION  
(Repealed by No 2 of 2015)

SECTION 202DB   QUOTATION OF TAX FILE NUMBERS IN CONNECTION WITH INVESTMENTS  

202DB(1)    

A person who is an investor in relation to an investment to which this Part applies may quote the person ' s tax file number to the investment body in connection with the investment.

202DB(2)    

Where:

(a) a person holds an investment on behalf of another person; and

(b) the first-mentioned person does not have a tax file number in his or her capacity of trustee of a trust estate in relation to the investment;

the first-mentioned person may quote his or her tax file number to the investment body in connection with the investment and, for the purposes of this Part, that person is to be taken to have quoted the investor ' s tax file number in connection with the investment.

SECTION 202DC   METHOD OF QUOTING TAX FILE NUMBER  

202DC(1)    
A person quotes a tax file number to an investment body by informing the body of the number in a manner approved by the Commissioner.

202DC(2)    
The investment body may be so informed by the person or by another person acting for that person.

202DC(3)    

If a person becomes an investor as a result of a transaction carried out through a securities dealer, the person shall be taken to have quoted the person ' s tax file number to the investment body concerned if the dealer is informed of the number.

SECTION 202DD  

202DD   INVESTOR EXCUSED FROM QUOTING TAX FILE NUMBER IN CERTAIN CIRCUMSTANCES  

Where:

(a) at a particular time a person becomes an investor in relation to an investment to which this Part applies by virtue of acquiring shares in a public company; and

(b) at that time, the person has quoted, or is taken to have quoted, a tax file number in connection with an existing investment consisting of a shareholding in that company; and

(c) the company has not, since the quotation of the number in connection with the existing investment, informed the person that the company has lost the person's tax file number;

the person is to be taken to have quoted a tax file number in connection with the first-mentioned investment.

FORMER SECTION 202DDA  

202DDA   QUOTATION OF INVESTMENT BODY REMITTER NUMBER TO BE ALTERNATIVE TO QUOTING TAX FILE NUMBER  
(Repealed by No 143 of 2007 )

SECTION 202DDB   QUOTATION OF TAX FILE NUMBER IN CONNECTION WITH INDIRECTLY HELD INVESTMENT  

202DDB(1)    

If, apart from this section:

(a) either of the following subparagraphs applies:

(i) both of the following conditions are satisfied:

(A) a body corporate (in this section called the interposed entity ) is the investor in relation to an investment (in this section called the secondary investment ) with an investment body (in this section called the secondary investment body );

(B) another person (in this section called the primary investor ) is entitled to receive from the interposed entity all or part of the income from the secondary investment (which right to receive the income or part of the income is in this section called primary investment );

(ii) both of the following conditions are satisfied:

(A) a person (in this section also called the primary investor ) is the investor in relation to an investment (in this section also called the primary investment ) covered by item 4 in the table in subsection 202D(1) , being a deposit of money with a solicitor (in this section also called the interposed entity );

(B) as a result of carrying out the purpose for which that investment was made, the interposed entity is the investor in relation to another investment (in this section also called the secondary investment ) with an investment body (in this section also called the secondary investment body ); and

(b) either:

(i) the secondary investment has a descriptive title which identifies all the primary investors; or

(ii) the conditions set out in the regulations are satisfied;

the following provisions have effect for the purposes of this Part and Subdivision 12-E in Schedule 1 to the Taxation Administration Act 1953 :

(c) the primary investor may quote his or her tax file number under section 202DB to the secondary investment body in connection with the secondary investment as if he or she were the investor in relation to the secondary investment;

(d) if the primary investor quotes his or her tax file number as mentioned in paragraph (c) - the interposed entity is taken to have quoted his or her tax file number to the secondary investment body in connection with the secondary investment;

(e) the interposed entity is not entitled to actually quote his or her tax file number to the secondary investment body in connection with the secondary investment;

(f) the interposed entity is taken not to be an investment body in relation to the primary investment.

202DDB(2)    
If there are 2 or more primary investors in relation to a primary investment, all the primary investors are taken to have quoted their tax file numbers as mentioned in paragraph (1)(c) if, and only if:

(a) all of those primary investors are persons who, for the purposes of this Part, are taken, by section 202EE , to have quoted their tax file numbers under this Division in connection with the primary investment; or

(b) if:

(i) paragraph (a) does not apply; and

(ii) all of those primary investors are covered by any or all of the following categories:

(A) persons who, for the purpose of this Part, are taken, under section 202EE , to have quoted their tax file numbers under this Division in connection with the primary investment;

(B) persons to whom section 202EB applies;

(C) entities mentioned in paragraph 202EC(1)(a) ; and

(iii) all of the following conditions are satisfied in relation to at least one of those primary investors:

(A) the primary investor is covered by sub-subparagraph (ii)(B) or (C);

(B) the primary investor gives to the secondary investment body the information mentioned in subsection 202EB(1) or 202EC (1) as if the primary investor were the investor in relation to the secondary investment;

(C) as a result of the giving of that information, the primary investor would be taken, under section 202EB or 202EC , to have quoted his or her tax file number under this Division in connection with the secondary investment; or

(c) at least one of those primary investors:

(i) has a tax file number; and

(ii) has quoted that number under section 202DB to the secondary investment body in connection with the secondary investment as if he or she were the investor in relation to the secondary investment.

SECTION 202DE  

202DE   SECURITIES DEALER TO INFORM THE INVESTMENT BODY OF TAX FILE NUMBER  

Where:

(a) a person becomes an investor as a result of a transaction carried out through a securities dealer; and

(b) the person informs the dealer of the person ' s tax file number;

the dealer shall inform the investment body concerned of the person' ' s tax file number.

SECTION 202DF   EFFECT OF INCORRECT QUOTATION OF TAX FILE NUMBER  

202DF(1)   [Notice of incorrect statement]  

If the Commissioner is satisfied:

(a) that the tax file number quoted to an investment body in relation to an investment:

(i) has been cancelled or withdrawn since it was quoted; or

(ii) is otherwise wrong; and

(b) that the investor has a tax file number;

the Commissioner may give to the investment body concerned notice of the incorrect statement and the investor's tax file number.

202DF(2)   [Tax file number deemed quoted]  

If a notice is given under subsection (1), the investor shall be regarded, for the purposes of this Part, as having always stated the investor's tax file number in connection with the investment.

202DF(3)   [Information by Commissioner]  

If:

(a) the Commissioner is satisfied that the tax file number quoted to an investment body in relation to an investment:

(i) has been cancelled since it was quoted; or

(ii) is for any other reason not the investor's tax file number; and

(b) the Commissioner is not satisfied that the investor has a tax file number;

the Commissioner may, by written notice given to the investment body concerned, inform the investment body accordingly.

202DF(4)   [Effective date of subsec (3) notice]  

A notice under subsection (3) takes effect on the day specified in the notice, being a day not earlier than the day on which a copy of the notice is given to the investor under subsection (5).

202DF(5)   [Copy of subsec (3) notice]  

The Commissioner shall give a copy of any notice under subsection (3) to the investor concerned, together with a written statement of the reasons for the decision to give the notice.

202DF(6)   [Tax file number deemed not quoted]  

On and from the day on which a notice under subsection (3) takes effect, the investor concerned shall be taken not to have quoted the investor's tax file number in connection with the investment.

202DF(7)    
(Omitted by No 48 of 1991)

SECTION 202DG   INVESTMENTS HELD JOINTLY  

202DG(1)   [Where investment held by 2 persons]  

Where 2 persons are jointly entitled to the property or rights that constitute an investment to which this Part applies, neither person shall be taken to have quoted the person's tax file number in connection with the investment unless both persons have quoted their tax file numbers under this Division in connection with the investment.

202DG(2)   [Where investment held by more than 2 persons]  

Where more than 2 persons are jointly entitled to the property or rights that constitute an investment to which this Part applies, all of the persons are to be taken to have quoted their tax file numbers in connection with the investment if and only if:

(a) where one of those persons has a tax file number and is not an exempt person in relation to the investment - that person has quoted that number, and at least one of the other persons is, for the purposes of this Part, to be taken to have quoted his or her tax file number, under this Division in connection with the investment; or

(b) where 2 or more of those persons have tax file numbers and are not exempt persons in relation to the investment - at least 2 of those persons have quoted their own tax file numbers under this Division in connection with the investment; or

(c) in any other case - at least 2 of those persons are, for the purposes of this Part, to be taken to have quoted their tax file numbers under this Division in connection with the investment.

202DG(2A)   [Exempt person]  

A reference in subsection (2) to an exempt person in relation to an investment is a reference to a person who, for the purposes of this Part, is to be taken to have quoted his or her tax file number under this Division in connection with the investment although the person has not actually done so.

202DG(3)   [Partners]  

This section does not apply in relation to persons who are jointly entitled to property or rights merely because they are partners in a partnership.

202DG(4)   [Indirectly held investments]  

This section does not apply in relation to investments covered by section 202DDB .

SECTION 202DH   TAX FILE NUMBER QUOTED FOR SUPERANNUATION OR SURCHARGE PURPOSES TAKEN TO BE QUOTED FOR PURPOSES OF THE TAXATION OF ELIGIBLE TERMINATION PAYMENTS  

202DH(1)    

If a person (the first person ) who is a beneficiary of an eligible superannuation entity or of a regulated exempt public sector superannuation scheme has quoted his or her tax file number to the trustee of the entity or scheme in connection with the operation or possible future operation of the Superannuation Industry (Supervision) Act 1993 , the Superannuation Contributions Tax (Assessment and Collection) Act 1997 , the Superannuation (Unclaimed Money and Lost Members) Act 1999 or the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 , the first person is taken, so long as he or she continues to be such a beneficiary, to have made a TFN declaration in relation to the trustee that has effect under Division 3 .

202DH(2)    

In this section and section 202DHA :

eligible superannuation entity
has the same meaning as in the Superannuation Industry (Supervision) Act 1993 .

regulated exempt public sector superannuation scheme
has the same meaning as in Part 25A of the Superannuation Industry (Supervision) Act 1993 .