INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
Where the Commissioner has reason to believe that a person liable to pay tax may leave Australia before the date on which the tax is due and payable the tax shall be due and payable on such date as the Commissioner notifies to that person.
205(2) [Additional tax]In subsection (1), ``tax'' includes additional tax under Part VII .
View history note
Hide history noteThe Commissioner must not exercise his or her power under this section (including the extended operation that this section has because of any provision of this or any other Act) on or after 1 July 2000.
Example:Subsection 163A(8) provides for an extended operation of this section in respect of a penalty under section 163A . The Commissioner therefore must not exercise his or her power under this section because of that extended operation on or after 1 July 2000.
Note:
For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about the variation of the time for paying an amount), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
The Commissioner may in any case grant such extension of time for payment of tax, or permit payment of tax to be made by such instalments and within such time as he considers the circumstances warrant; and in such case the tax shall be due and payable accordingly.
In subsection (1), ``tax'' includes additional tax under Part VII .
The Commissioner must not exercise his or her power under this section (including the extended operation that this section has because of any provision of this or any other Act) on or after 1 July 2000.
Example:Subsection 163A(8) provides for an extended operation of this section in respect of a penalty under section 163A . The Commissioner therefore must not exercise his or her power under this section because of that extended operation on or after 1 July 2000.
Note:
For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about the variation of the time for paying an amount), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
(Repealed by No 11 of 1999)
(Repealed by No 11 of 1999)
Income tax when it becomes due and payable shall be a debt due to the Commonwealth, and payable to the Commissioner in the manner and at the place prescribed.
208(2) [``income tax'']In subsection (1),
``income tax''
includes the general interest charge under a provision of this Act and additional tax under Part
VII
.
Note 1:
The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .
Note 2:
Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
This section does not apply in relation to:
(a) income tax that becomes due and payable on or after 1 July 2000; or
(b) any other amount that becomes due and payable on or after that day, and that is taken to be income tax for the purposes of this section because of any provision of this or any other Act.
Example:Subsection 160ARW(1) provides that in section 208 income tax includes franking deficit tax, deficit deferral tax and franking additional tax. This section therefore does not apply in relation to any franking deficit tax, deficit deferral tax or franking additional tax that becomes due and payable on or after 1 July 2000.
Note:
For provisions about collection and recovery of income tax and other amounts on or after 1 July 2000, see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
(Repealed by No 73 of 1989)
(Repealed by No 11 of 1999)
Any tax unpaid may be sued for and recovered in any Court of competent jurisdiction by the Commissioner or a Deputy Commissioner suing in his official name.
209(2) [``tax'']In subsection (1),
``tax''
includes the general interest charge under a provision of this Act and additional tax under Part
VII
.
Note 1:
The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .
Note 2:
Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
This section does not apply in relation to:
(a) any tax that becomes due and payable on or after 1 July 2000; or
(b) any other amount that becomes due and payable on or after that day, and that is taken to be tax for the purposes of this section because of any provision of this or any other Act.
Example:Subsection 160ARW(1) provides that in section 209 tax includes franking deficit tax, deficit deferral tax and franking additional tax. This section therefore does not apply in relation to any franking deficit tax, deficit deferral tax or franking additional tax that becomes due and payable on or after 1 July 2000.
Note:
For provisions about collection and recovery of tax and other amounts on or after 1 July 2000, see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
(a) is absent from Australia and has not to the knowledge of the Commissioner after reasonable inquiry in that behalf any attorney or agent in Australia on whom service of process can be effected; or
(b) cannot after reasonable inquiry be found;
service of any process in proceedings against him for recovery of income tax may, without leave of the Court, be effected on him by posting the same or a sealed copy thereof in a letter addressed to him at his last known place of business or abode in Australia.
214(2) [``income tax'']In subsection (1),
``income tax''
includes the general interest charge under a provision of this Act and additional tax under Part
VII
.
Note 1:
The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .
Note 2:
Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
A process must not be served under this section (including the extended operation that this section has because of any provision of this or any other Act) on or after 1 July 2000.
Example:Subsection 163A(8) provides for an extended operation of this section in respect of a penalty under section 163A . A process therefore must not be served on or after 1 July 2000 under this section because of that extended operation.
Note:
For provisions about collection and recovery of income tax and other amounts on or after 1 July 2000 (including provisions about substituted service), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
In this section:
base interest rate
for a day has the same meaning as in section
8AAD
of the
Taxation Administration Act 1953
.
The annual rate at which interest is calculated or computed under:
(a) section 102AAB , 102AAM , 555 or 592 of this Act; or
(b) (Repealed by No 11 of 1999)
(c) (Repealed by No 11 of 1999)
(d) section 75 of the Training Guarantee (Administration) Act 1990 ; or
(e) section 8C , 8I , 8T , 8X , 8ZB , 10 , 12AE or 12C of the Taxation (Interest on Overpayments and Early Payments) Act 1983 ; or
(f)-(g) (Repealed by No 178 of 1999)
for any day is the base interest rate for that day.
(Repealed by No 11 of 1999)
[ CCH Note: The rates of interest are as follows:
S 214A inserted by No 101 of 1992.
Every person (in this section called `` the trustee ''):
(a) who is liquidator of any company which is being wound up; or
(b) who is receiver for any debenture holders, and has taken possession of any assets of a company; or
(c) who is agent for a non-resident and has been required by his principal to wind up the business or realize the assets of his principal,
shall within 14 days after he has become liquidator, or after he has so taken possession of assets, or after he has been so required by his principal, give notice thereof to the Commissioner.
The Commissioner shall as soon as practicable thereafter, notify to the trustee the amount which appears to the Commissioner to be sufficient to provide for any tax which then is or will thereafter become payable by the company or principal, as the case may be.
215(3) [Liquidator or receiver for debenture holders]Subject to subsection (3B), if the trustee is a person of the kind referred to in paragraph (1)(a) or (b), the trustee:
(a) shall not, without the leave of the Commissioner, part with any of the assets of the company until the trustee has been so notified;
(b) shall set aside, out of the assets available for payment of ordinary debts of the company, assets to the value of an amount that bears to the value of the assets available for payment of ordinary debts of the company the same proportion as the amount notified by the Commissioner under subsection (2) bears to the sum of:
(i) the amount notified by the Commissioner under subsection (2);
(ii) any amount of prescribed tax that the Commissioner is required to notify to the trustee under an Act other than this Act and has so notified; and
(iii) the aggregate of the ordinary debts of the company (excluding any debt in respect of tax or prescribed tax); and
(c) is, to the extent of the value of the assets that the trustee is so required to set aside, liable as trustee to pay the tax.
If the trustee is a person of the kind referred to in paragraph (1)(c), the trustee:
(a) shall not, without the leave of the Commissioner, part with any of the assets of the principal until the trustee has been notified by the Commissioner under subsection (2);
(b) shall set aside, out of the assets available for the payment of the tax, assets to the value of the amount so notified, or the whole of the assets so available if they are of less than that value; and
(c) is, to the extent of the value of the assets that the trustee is so required to set aside, liable as trustee to pay the tax.
Nothing in paragraph (3)(a) prevents the trustee parting with assets of the company for the purpose of paying debts of the company that are not ordinary debts of the company.
For the purposes of subsections (3) and (3B), a debt of the company is an ordinary debt if:
(a) the debt is an unsecured debt; and
(b) the debt is not required, under a law of the Commonwealth or of a State or Territory, to be paid in priority to some or all of the other debts of the company. 215(3D) [``prescribed tax'']
In subsection (3), ``prescribed tax'' means any amount that the Commissioner is required to notify under a section of another Act that corresponds to this section.
If the trustee refuses or fails to comply with any provision of this section or refuses or fails as trustee duly to pay the tax for which the trustee is liable under subsection (3) or (3A), the trustee:
(a) is, to the extent of the value of the assets that the trustee is required under subsection (3) or (3A), as the case may be, to set aside, personally liable to pay the tax; and
(b) is guilty of an offence punishable on conviction by a fine not exceeding $1,000.
Where more than one person is the trustee, the obligations and liabilities attaching to the trustee under this section shall attach to those persons jointly.
215(6) [``tax'']In this section, unless the contrary intention appears:
(a) the general interest charge under a provision of this Act; and
(b) additional tax under Part VII ; and
(c) an amount payable to the Commissioner under Division 1AAA , 1AA , 1A , 1B , 1C , 2 , 3 , 3A , 3B , 4 , 8 or 9 .
Note 1:
The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .
Note 2:
Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
This section (including the extended operation that this section has because of any provision of this or any other Act) does not apply in relation to:
(a) a person who, on or after 1 July 2000, becomes the liquidator of a company; or
(b) a person who, on or after 1 July 2000, takes possession of assets of a company as a receiver for any debenture holders of the company; or
(c) an agent who, on or after 1 July 2000, is instructed to wind up the principal's business or realise the principal's assets.
Example:Subsection 163A(8) provides for an extended operation of this section in respect of a penalty under section 163A . However, despite that extended operation, this section does not apply in relation to a person mentioned in a paragraph of subsection (7).
Note:
For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about liquidators, receivers and agents), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
The following provisions shall apply in any case where, at the time of a taxpayer's death, tax has not been assessed or paid on the whole of the income, and of the profits or gains of a capital nature, derived by the taxpayer up to the time of the death of the taxpayer or additional tax under Part VII to which the taxpayer is liable has not been assessed or paid:
(a) The Commissioner shall have the same powers and remedies for the assessment and recovery of tax from the trustees of the estate of the taxpayer in respect of the liability to which the taxpayer was subject as he would have against the taxpayer if the taxpayer were still living;
(aa) The trustees shall furnish a return of any income, or profits or gains of a capital nature, derived by the deceased person in respect of which no return was lodged by the deceased person;
(b) The trustees shall furnish such returns as the Commissioner requires for the purpose of an accurate assessment;
(c) The trustees shall be subject to additional tax to the same extent as the taxpayer would be subject to additional tax if he were still living:
Provided that the Commissioner may in any particular case, for reasons which he thinks sufficient, remit the additional tax or any part thereof.
(d) The amount of any tax payable by the trustees shall be a first charge on all the taxpayer's estate in their hands.
Where the trustees are unable or refuse or fail to furnish a return, the Commissioner may make an assessment of the amount on which, in the Commissioner's judgment, tax ought to be levied and the trustees shall be liable to pay tax as if that amount were the taxable income of the deceased person.
In this section, unless the contrary intention appears,
``tax''
includes the general interest charge under a provision of this Act and additional tax under Part
VII
.
Note 1:
The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .
Note 2:
Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
This section (including the extended operation that this section has because of any provision of this or any other Act) does not apply in relation to a person who dies on or after 1 July 2000.
Example:Subsection 163A(8) provides for an extended operation of this section in respect of a penalty under section 163A . However, despite that extended operation, this section does not apply in relation to a person who dies on or after 1 July 2000.
Note:
For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about the estate of a deceased taxpayer), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
(Repealed by No 123 of 1984)
The Commissioner may at any time, or from time to time, by notice in writing (a copy of which shall be forwarded to the taxpayer at his last place of address known to the Commissioner), require:
(a) any person by whom any money is due or accruing or may become due to a taxpayer;
(b) any person who holds or may subsequently hold money for or on account of a taxpayer;
(c) any person who holds or may subsequently hold money on account of some other person for payment to a taxpayer; or
(d) any person having authority from some other person to pay money to a taxpayer;
to pay to the Commissioner, either forthwith upon the money becoming due or being held, or at or within a time specified in the notice (not being a time before the money becomes due or is held):
(e) so much of the money as is sufficient to pay the amount due by the taxpayer in respect of tax or, if the amount of the money is equal to or less than the amount due by the taxpayer in respect of tax, the amount of the money; or
(f) such amount as is specified in the notice out of each payment that the person so notified becomes liable from time to time to make to the taxpayer until the amount due by the taxpayer in respect of tax is satisfied;
and may at any time, or from time to time, amend or revoke any such notice, or extend the time for making any payment in pursuance of the notice.
Any person who refuses or fails to comply with any notice under this section is guilty of an offence.
Penalty: $1,000.
Where a person (in this subsection referred to as the ``convicted person'' ) is convicted before a court of an offence against subsection (2) in relation to the refusal or failure of the convicted person or another person to comply with a notice under this section, the court may, in addition to imposing a penalty on the convicted person, order the convicted person to pay to the Commissioner an amount not exceeding the amount or the aggregate of the amounts, as the case requires, that the convicted person or the other person, as the case may be, refused or failed to pay to the Commissioner in accordance with the notice.
Any person making any payment in pursuance of this section shall be deemed to have been acting under the authority of the taxpayer and of all other persons concerned and is hereby indemnified in respect of such payment.
218(5) [Notice of receipt]If the Commissioner receives any payment in respect of the amount due by the taxpayer before payment is made by the person so notified he shall forthwith give notice thereof to that person.
218(6) [Money held by co-operative housing societies](a) money has been paid by a person to a co-operative housing society in respect of the issue of withdrawable shares in the capital of the society; and
(b) the money has not been repaid;
the money shall, for the purposes of this section, be taken:
(c) in a case where the money is repayable on demand - to be due by the co-operative housing society to the person; or
(d) in any other case - to be money that may become due by the co-operative housing society to the person.
Where, but for this subsection, money is not due, or repayable on demand, to a person unless a condition is fulfilled, the money shall be taken, for the purposes of this section, to be due, or repayable on demand, as the case may be, to the person notwithstanding that the condition has not been fulfilled.
In this section:
(Repealed by Act No 44 of 1999)
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.
"person"
includes a company, a partnership, the Commonwealth, a State, a Territory and any public authority (whether incorporated or unincorporated) of the Commonwealth or a State or Territory;
(a) additional tax under Part VII ;
(ab) the general interest charge under a provision of this Act;
(b) an amount that a person is liable to pay to the Commissioner under Division 1AAA , 1AA , 1A , 1B , 1C , 2 , 3 , 3A , 3B , 4 , 8 or 9 ;
(ba) an amount of interest that a person is liable to pay to the Commissioner under section 102AAM ;
(c) a judgment debt or costs in respect of:
(i) tax;
(ii) additional tax under Part VII ;
(iia) the general interest charge under a provision of this Act;
(iii) an amount that a person is liable to pay to the Commissioner under Division 1AAA , 1AA , 1A , 1B , 1C , 2 , 3 , 3A , 3B , 4 , 8 or 9 ; or
(iv) an amount of interest that a taxpayer is liable to pay to the Commissioner under section 102AAM ;
(d) any fine or costs imposed by a court in respect of:
(i) an offence against this Act or the regulations; or
(ii) any other taxation offence within the meaning of Part III of the Taxation Administration Act 1953 that relates to this Act or the regulations; or
(e) any amount ordered by a court, upon the conviction of a person for an offence of a kind referred to in paragraph (d), to be paid by the person to the Commissioner;
Note 1:
The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .
Note 2:
Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
"taxpayer"
includes a person who is liable to pay an amount to the Commissioner under Division
1AA
,
1A
,
1B
,
1C
,
2
,
3
,
3A
,
3B
,
4
,
8
or
9
.
Any notice to be given under this section to the Commonwealth or a State may be served upon such person as is prescribed, and any notice so served shall be deemed to have been served upon the Commonwealth or a State, as the case may be.
218(8) Application.The Commissioner must not issue a notice under this section (including the extended operation that this section has because of any provision of this or any other Act) on or after 1 July 2000.
Example:Subsection 160ARW(1) provides for an extended operation of this section in respect of franking deficit tax, deficit deferral tax or franking additional tax. The Commissioner therefore must not exercise his or her power under this section because of that extended operation on or after 1 July 2000.
Note:
For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions on collecting an amount from a third person), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
Where, in respect of the estate of a deceased taxpayer, neither probate has been granted nor letters of administration have been taken out within 6 months of the death of the taxpayer, and:
(a) tax has not been assessed or paid on the whole of the income, and of the profits or gains of a capital nature, derived by the taxpayer up to the time of the death of the taxpayer; or
(aa) interest under section 102AAM to which the taxpayer is liable has not been assessed or paid; or
(b) additional tax under Part VII to which the taxpayer is liable has not been assessed or paid;
the Commissioner may make an assessment of the tax payable by the estate of the taxpayer.
The Commissioner shall cause notice of the assessment to be published twice in a daily newspaper circulating in the State in which the taxpayer resided.
220(3) [Objection against assessment]A person who claims an interest in the estate of the taxpayer and who is dissatisfied with the assessment may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 .
Subject to any amendment of the assessment, the published notice of the assessment so made shall be conclusive evidence of the indebtedness of the deceased to the Commissioner.
The Commissioner may issue an order in the prescribed form authorizing any member of the police force of the Commonwealth or of a State or of a Territory or any other person named therein, to levy the amount of tax assessed any general interest charge under a provision of this Act payable in relation to that tax, with costs, by distress and sale of any property of the deceased.
Note 1:
The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .
Note 2:
Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Upon the issue of any such order the member or person so authorized shall have power to levy that amount accordingly in the prescribed manner.
220(7) [Administration granted]In spite of subsections (4), (5) and (6), if probate of the will, or letters of administration of the estate, of the deceased is or are granted to a person, and the person is dissatisfied with the assessment, the person may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 .
Part IVC of the Taxation Administration Act 1953 applies in relation to an objection under subsection (3) or (7) as if the person were the taxpayer.
In this section, unless the contrary intention appears:
(a) interest under section 102AAM ; and
(b) additional tax under Part VII .
This section (including the extended operation that this section has because of any provision of this or any other Act) does not apply in relation to a person who dies on or after 1 July 2000.
Note:
For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about the estate of a deceased taxpayer), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
This Division sets out when and how amounts deducted under:
must be paid to the Commissioner.
Remitters are divided into 3 categories - small, medium and large. The timing and method of payment depends on the category of the remitter.
Failure to remit payments or to comply with other requirements of this Division may be a criminal offence or result in penalties.
Subject to this section, a person is a large remitter in relation to a particular month if any of the following paragraphs applies:
(a) the total of the deductions that the person makes under Divisions 1AA, 2 and 3A for the financial year ending on 30 June 1997 exceeded $1 million;
(b) both of the following subparagraphs apply:
(i) at the end of the financial year (the 1996-97 year ) ending on 30 June 1997, the person was included in a company group;
(ii) the total of the deductions under Divisions 1AA, 2 and 3A, for the 1996-97 year, of the persons that were included in that company group at the end of the 1996-97 year exceeded $1 million;
(c) the total of the deductions that the person makes under Divisions 1AA, 2 and 3A for any financial year ending on or after 30 June 1998 and before that month exceeded $1 million;
(d) both of the following subparagraphs apply:
(i) at the end of any financial year (the threshold year ) ending on or after 30 June 1998 and before that month, the person was included in a company group;
(ii) the total of the deductions under Divisions 1AA, 2 and 3A, for the threshold year, of the persons that were included in that company group at the end of the threshold year exceeded $1 million;
Note:
Company group is defined in section 220AAI .
(e) that month is covered by a notice in force under section 220AAC ;
and that month is not covered by a notice in force under subsection (3).
220AAB(2) Not large remitter before certain times.(a) is not a large remitter in relation to any month before July 1998; and
(b) is not a large remitter in relation to July or August 1998 unless the person is covered by paragraph (1)(a) or (b); and
(c) is not a large remitter because of paragraph (1)(c) or (d) in relation to July or August in a later financial year unless the person was a large remitter in relation to June of the previous financial year. 220AAB(3) Commissioner's determination that person not a large remitter.
The Commissioner may, by notice in writing served on a person who would otherwise be a large remitter:
(a) determine that the person is not a large remitter in relation to:
(i) a month or months specified in the notice; or
(ii) all months after and including a month specified in the notice; and
(b) revoke or vary any such determination.
Note:
A person who is not a large remitter because of this subsection will generally be a medium remitter: see paragraph220AAJ(1)(d) .
220AAB(4) [Notice to be served by beginning of month]A notice under subsection (3) does not have effect in relation to a particular month unless the notice was served before the beginning of the month.
The Commissioner may, by notice in writing served on a person who would otherwise be a medium remitter or a small remitter in relation to a month:
(a) determine that the person is a large remitter in relation to:
(i) a month or months specified in the notice; or
(ii) all months after and including a month specified in the notice; and
(b) revoke or vary any such determination. 220AAC(2) [Notice effective in second month]
A notice under subsection (1) does not have effect in relation to any month earlier than the second month following the month in which the notice is served.
220AAC(3) Matters to have regard to.In exercising powers under subsection (1), the Commissioner may have regard to the following matters:
(a) any arrangement that was entered into or carried out after 15 August 1989 for the purpose, or for purposes that included the purpose, of avoiding the application of section 220AAE or of paragraph 221F(5)(a) in relation to deductions made by a person;
(b) the extent (if any) to which the person concerned pays:
(i) salary or wages to persons to whom salary or wages were previously paid by another person; or
(ii) reportable payments to persons to whom reportable payments were previously paid by another person; or
(iii) prescribed payments to persons to whom prescribed payments were previously paid by another person;
(c) the amount that the Commissioner considers the person is likely to deduct under Divisions 1AA, 2 and 3A in the following 12 months;
(d) such other matters as the Commissioner considers relevant. 220AAC(4) [Para (3)(a) reference]
The reference in paragraph (3)(a) to paragraph 221F(5)(a) is a reference to that paragraph as in force before the commencement of Schedule 4 to the Taxation Laws Amendment Act (No 3) 1998 .
A person who is a large remitter in relation to a month may apply in writing to the Commissioner for a determination under subsection 220AAB(3) that the person is not a large remitter in relation to particular months.
A person who is a large remitter in relation to a month must pay to the Commissioner the amount of any deductions that the person makes under Division 1AA , 2 or 3A during that month as set out in the following table:
| Table of payments by large remitters | ||
| Item | Day on which amount deducted | Payment day |
| 1 | Saturday or Sunday | The second Monday after that day |
| . | ||
| 2 | Monday or Tuesday | The first Monday after that day |
| . | ||
| 3 | Wednesday | The second Thursday after that day |
| . | ||
| 4 | Thursday or Friday | The first Thursday after that day |
Note:
The payments covered by items 1 and 2 would normally be paid together, as would the payments covered by items 3 and 4.
220AAE(2)(Repealed by No 11 of 1999)
If any of the amount (the deducted amount ) which a large remitter must pay to the Commissioner remains unpaid after the time by which it is due to be paid, the large remitter is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the deducted amount was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the deducted amount;
(ii) general interest charge on any of the deducted amount.
Note:
The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .
A large remitter must pay an amount by a means of electronic transfer approved in writing by the Commissioner. If a large remitter pays an amount other than by electronic transfer, the large remitter will be liable for a penalty under section 220AAW .
Each payment that is made to the Commissioner must be accompanied by a statement about the payment and about the deductions in relation to which the payment is made.
220AAG(2) [Form of statement]The Commissioner may, by written notice, require statements to be in a particular form, contain particular information and be given in a particular manner. For example, the Commissioner may require certain statements to be given by way of electronic transmission.
A large remitter that must pay an amount to the Commissioner under section 220AAE must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid).
220AAGA(2) [Failure to notify penalty]If the large remitter fails to do so, or notifies the Commissioner of an amount that is less than the correct amount, the large remitter is liable to pay the failure to notify penalty on the amount, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the day before the Commissioner receives notification from the large remitter, or otherwise becomes aware, of the correct amount.
Note:
The failure to notify penalty is worked out under Division 2 of Part IIA of the Taxation Administration Act 1953 .
220AAGA(3) [Forms of notification]The notification must be in a form approved in writing by the Commissioner, unless:
(a) it is by way of a statement under section 220AAG accompanying a payment; and
(b) the Commissioner requires statements under that section to be in a particular form, contain particular information or be given in a particular manner; and
(c) the statement meets those requirements.
The Commissioner may, in such cases and to the extent the Commissioner thinks fit, by written notice given to a large remitter:
(a) extend any time set out in section 220AAE for compliance with the requirements of that section; or
(b) with the agreement of the large remitter, vary the requirements of section 220AAF or 220AAG in their application to the large remitter. 220AAH(2) Application.
The Commissioner must not exercise his or her power under paragraph (1)(a) on or after 1 July 2000.
Note:
For provisions about collection and recovery of amounts on or after 1 July 2000 (including provisions about the extension of the time for paying an amount), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
For the purposes of this Division, a company group consists of any collection of 2 or more companies each of which is a group company in relation to each of the others.
220AAI(2) [Criteria for group company]For the purposes of this section, a company is a group company in relation to another company if:
(a) one of the companies is a 100% subsidiary of the other company; or
(b) each of the companies is a 100% subsidiary of the same third company. 220AAI(3) [Criteria for 100% subsidiary]
A company (the subsidiary company ) is a 100% subsidiary of another company (the holding company ) if all the shares in the subsidiary company are beneficially owned by:
(a) the holding company; or
(b) one or more 100% subsidiaries of the holding company; or
(c) the holding company and one or more 100% subsidiaries of the holding company. 220AAI(4) [Company other than subsidiary]
A company (other than the subsidiary company) is a 100% subsidiary of the holding company if, and only if:
(a) it is a 100% subsidiary of the holding company; or
(b) it is a 100% subsidiary of a 100% subsidiary of the holding company;
because of any other application or applications of this section.
Subject to this section, a person is a medium remitter in relation to a particular month if the person is not a large remitter in relation to that month and any of the following paragraphs applies:
(a) the total of the deductions that the person makes under Divisions 1AA, 2 and 3A for the period between 1 July 1997 and 31 March 1998 exceeded $18,750;
(b) the total of the deductions that the person makes under Divisions 1AA, 2 and 3A for any financial year ending on or after 30 June 1998 and before that month exceeded $25,000;
(c) that month is covered by a notice in force under section 220AAK ;
(d) that month is covered by a notice in force under subsection 220AAB(3) (determination that the person is not a large remitter);
and that month is not covered by a notice in force under subsection (3).
220AAJ(2) Not medium remitter before certain times.(a) is not a medium remitter in relation to any month before July 1998; and
(b) is not a medium remitter in relation to July, August or September 1998 unless the person is covered by paragraph (1)(a), (c) or (d); and
(c) is not a medium remitter because of paragraph (1)(b) in relation to July, August or September in a later financial year unless the person was a medium remitter in relation to June of the previous financial year. 220AAJ(3) Commissioner's determination that person not a medium remitter.
The Commissioner may, by notice in writing served on a person who would otherwise be a medium remitter:
(a) determine that the person is not a medium remitter in relation to:
(i) a month or months specified in the notice; or
(ii) all months after and including a month specified in the notice; and
(b) revoke or vary any such determination.
Note:
A person who is not a medium remitter because of this subsection will be a small remitter.
220AAJ(4) [Notice to be served before beginning of month]A notice under subsection (3) does not have effect in relation to a particular month unless the notice was served before the beginning of the month.
The Commissioner may, by notice in writing served on a person who would otherwise be a small remitter:
(a) determine that the person is a medium remitter in relation to:
(i) a month or months specified in the notice; or
(ii) all months after and including a month specified in the notice; and
(b) revoke or vary any such determination. 220AAK(2) [When notice effective]
A notice under subsection (1) does not have effect in relation to any month earlier than the second month following the month in which the notice is served.
220AAK(3) Matters to have regard to.In exercising powers under subsection (1), the Commissioner may have regard to the following matters:
(a) any failure to comply with one or more of the person's obligations under this Division as a result of which the Commissioner considers that it is no longer appropriate for the person to be a small remitter;
(b) any arrangement that was entered into or carried out after 13 May 1997 for the purpose, or for purposes that included the purpose, of avoiding the application of section 220AAM in relation to deductions made by a person;
(c) the extent (if any) to which the person concerned pays:
(i) salary or wages to persons to whom salary or wages were previously paid by another person; or
(ii) reportable payments to persons to whom reportable payments were previously paid by another person; or
(iii) prescribed payments to persons to whom prescribed payments were previously paid by another person;
(d) the amount that the Commissioner considers the person is likely to deduct under Divisions 1AA, 2 and 3A in the following 12 months;
(e) such other matters as the Commissioner considers relevant.
A person who is medium remitter in relation to a month may apply in writing to the Commissioner for a determination under subsection 220AAJ(3) that the person is not a medium remitter in relation to particular months.
A person who is a medium remitter in relation to a month must pay to the Commissioner the amount of any deductions that the medium remitter makes under Division
1AA
,
2
or
3A
in that month by the end of the 21st day after the end of the month.
Note:
Subsection 36(2) of the Acts Interpretation Act 1901 does not apply for the purposes of this subsection.
(Repealed by No 11 of 1999)
If any of the amount (the deducted amount ) which a medium remitter must pay to the Commissioner remains unpaid after the time by which it is due to be paid, the medium remitter is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the deducted amount was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the deducted amount;
(ii) general interest charge on any of the deducted amount.
Note:
The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .
A medium remitter must pay an amount:
(a) by a means of electronic transfer approved in writing by the Commissioner; or
(b) by any other means approved in writing by the Commissioner.
Each payment that is made to the Commissioner must be accompanied by a statement about the payment and about the deductions in relation to which the payment is made.
220AAO(2) [Form of statement]The Commissioner may, by written notice, require statements to be in a particular form, contain particular information and be given in a particular manner. For example, the Commissioner may require certain statements to be given by way of electronic transmission.
A medium remitter that must pay an amount to the Commissioner under section 220AAM must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid).
220AAOA(2) [Failure to notify penalty]If the medium remitter fails to do so, or notifies the Commissioner of an amount that is less than the correct amount, the medium remitter is liable to pay the failure to notify penalty on the amount, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the day before the Commissioner receives notification from the medium remitter, or otherwise becomes aware, of the correct amount.
Note:
The failure to notify penalty is worked out under Division 2 of Part IIA of the Taxation Administration Act 1953 .
220AAOA(3) [Approved form]The notification must be in a form approved in writing by the Commissioner, unless:
(a) it is by way of a statement under section 220AAO accompanying a payment; and
(b) the Commissioner requires statements under that section to be in a particular form, contain particular information or be given in a particular manner; and
(c) the statement meets those requirements.
The Commissioner may, in such cases and to the extent the Commissioner thinks fit, by written notice given to a medium remitter:
(a) extend the time set out in section 220AAM for compliance with the requirements of that section; or
(b) with the agreement of the medium remitter, vary the requirements of section 220AAN or 220AAO in their application to the medium remitter. 220AAP(2) Application.
The Commissioner must not exercise his or her power under paragraph (1)(a) on or after 1 July 2000.
Note:
For provisions about collection and recovery of amounts on or after 1 July 2000 (including provisions about the extension of the time for paying an amount), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
A person is a small remitter in relation to any month in relation to which the person is neither a large remitter nor a medium remitter.
A person who is a small remitter in relation to a month must pay to the Commissioner the amount of any deductions that the person makes under Division
1AA
,
2
or
3A
in that month by the end of the 21st day after the end of the quarter in which the month occurs. The quarters end at the end of 31 March, 30 June, 30 September and 31 December.
Note:
Subsection 36(2) of the Acts Interpretation Act 1901 does not apply for the purposes of this subsection.
(Repealed by No 11 of 1999)
If any of the amount (the deducted amount ) which a small remitter must pay to the Commissioner remains unpaid after the time by which it is due to be paid, the small remitter is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the deducted amount was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the deducted amount;
(ii) general interest charge on any of the deducted amount.
Note:
The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .
A small remitter must pay an amount:
(a) by a means of electronic transfer approved in writing by the Commissioner; or
(b) by any other means approved in writing by the Commissioner.
Each payment that is made to the Commissioner must be accompanied by a statement about the payment and about the deductions in relation to which the payment is made.
220AAT(2) [Form of statement]The Commissioner may, by written notice, require statements to be in a particular form, contain particular information and be given in a particular manner. For example, the Commissioner may require certain statements to be given by way of electronic transmission.
A small remitter that must pay an amount to the Commissioner under section 220AAR must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid).
220AATA(2) [Liability to failure to notify penalty]If the small remitter fails to do so, or notifies the Commissioner of an amount that is less than the correct amount, the small remitter is liable to pay the failure to notify penalty on the amount, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the day before the Commissioner receives notification from the small remitter, or otherwise becomes aware, of the correct amount.
Note:
The failure to notify penalty is worked out under Division 2 of Part IIA of the Taxation Administration Act 1953 .
220AATA(3) [Approved form]The notification must be in a form approved in writing by the Commissioner, unless:
(a) it is by way of a statement under section 220AAT accompanying a payment; and
(b) the Commissioner requires statements under that section to be in a particular form, contain particular information or be given in a particular manner; and
(c) the statement meets those requirements.
The Commissioner may, in such cases and to the extent the Commissioner thinks fit, by written notice given to a small remitter:
(a) extend the time set out in section 220AAR for compliance with the requirements of that section; or
(b) with the agreement of the small remitter, vary the requirements of section 220AAS or 220AAT in their application to the small remitter. 220AAU(2) Application.
The Commissioner must not exercise his or her power under paragraph (1)(a) on or after 1 July 2000.
Note:
For provisions about collection and recovery of amounts on or after 1 July 2000 (including provisions about the extension of time for paying an amount), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
(Repealed by No 11 of 1999)
A large remitter that pays an amount other than by electronic transfer is liable to a penalty of the greater of:
(a) $500; or
(b) assuming that the general interest charge applied to the amount that was paid other than by electronic transfer - an amount equal to the general interest charge that would be payable for each day in a period of 7 days starting at the beginning of the day on which the payment became due.
Note:
The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .
220AAW(2) [Possible remission]However, the Commissioner may remit some or all of the penalty.
220AAW(3) [When penalty due]The penalty becomes due for payment on the day the payment was made.
220AAW(4) [Unpaid remainder]If any of the penalty remains unpaid after the time by which it is due to be paid, the large remitter is liable to pay the general interest charge on the unpaid penalty amount for each day in the period that:
(a) started at the beginning of the day by which the penalty amount was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the penalty amount;
220AAW(5) [Government agencies]
(ii) general interest charge on any of the penalty amount.
This section does not apply to an exempt Australian government agency (as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 ).
(Repealed by No 11 of 1999)
(Repealed by No 11 of 1999)
A person (other than a government body) who contravenes section 220AAG , 220AAO or 220AAT is guilty of an offence punishable on conviction by a fine not exceeding 20 penalty units.
In this section:
recoverable amount
means any of the following amounts:
(a) an amount payable to the Commissioner under this Division by a person other than the Commonwealth;
(b) the unpaid amount of an estimate under section 222AGA that relates to a liability under this Division;
(c) a penalty payable under Subdivision E of Division 8 in relation to such an estimate;
(d) an amount that is due and payable under an agreement under section 222ALA that relates to:
(i) a liability under this Division; or
(ii) a liability to pay an estimate relating to a liability under this Division;
even if the agreement also relates to a liability that is not of a kind referred to in subparagraph (i) or (ii);
(e) a penalty payable under Subdivision B of Division 9 in relation to a company's liability under this Division;
(f) a penalty payable under Subdivision C of Division 9 in relation to an estimate relating to a company's liability under this Division;
(g) a penalty payable under Subdivision D of Division 9 in relation to a company's liability to pay an amount of the kind mentioned in paragraph (d). 220AAZA(2) [Debt due to Commonwealth]
A recoverable amount is a debt due to the Commonwealth.
220AAZA(3) [Payable to Commissioner]A recoverable amount is payable to the Commissioner.
220AAZA(4) [Right of action]A recoverable amount may be sued for and recovered in a court of competent jurisdiction by the Commissioner or a Deputy Commissioner suing in his or her official name.
220AAZA(5) Criminal proceedings - ancillary order for payment.If proceedings for an offence against this Division are brought against the person by whom a recoverable amount is payable, the court before which the proceedings are brought may order the person to pay the amount to the Commissioner.
220AAZA(6) Averments.The provisions of section 8ZL of the Taxation Administration Act 1953 (which deals with averments) apply in proceedings for the recovery of a recoverable amount in a corresponding way to the way in which they apply in relation to a prosecution for a prescribed taxation offence within the meaning of Part III of that Act.
220AAZA(7) Evidentiary certificate.In an action for the recovery of a recoverable amount, a written certificate stating that the sum specified in the certificate was, as at the date of the certificate, due by a specified person to the Commonwealth in respect of a recoverable amount is prima facie evidence of the matters stated in the certificate. The certificate must be signed by the Commissioner, a Second Commissioner, a Deputy Commissioner or a delegate of the Commissioner.
220AAZA(8) - (9)(Repealed by No 11 of 1999)
In making a statement (whether orally or in writing and whether or not under oath) for a purpose connected with proceedings to recover a recoverable amount from a person (the debtor ), the maker of the statement (who may be the debtor) may, in so far as the statement relates to a question about whether the debtor has a defence, ignore the possibility that a statutory declaration relating to an estimate may be given to the Commissioner, or an affidavit relating to an estimate may be filed, under Subdivision B, C or D of Division 8 .
220AAZA(11) Interpretation.An expression used in paragraphs (1)(b) to (g) has the same meaning as in Division 8 .
220AAZA(12) Application.This section applies or has effect as follows:
(a) subsections (2), (3) and (4) do not apply in relation to a recoverable amount that becomes due and payable on or after 1 July 2000;
(b) an averment must not be made because of subsection (6) on or after 1 July 2000;
(c) a certificate must not be made under subsection (7) on or after 1 July 2000.
Note:
For provisions about collection and recovery of recoverable amounts and other amounts on or after 1 July 2000, see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
Section 264 applies, for the purposes of this Division, as if the reference in paragraph (1)(b) of that section to a person's income or assessment were a reference to a matter relevant to the administration or operation of this Division.
Note:
Section 264 empowers the Commissioner to obtain information.
A form that is approved by the Commissioner for the purposes of this Division may be required to contain a declaration by the person using the form.
This Division applies to a partnership as if the partnership were a person, but it applies with the following changes:
(a) obligations that would be imposed on the partnership are imposed instead on each partner, but may be discharged by any of the partners;
(b) the partners are jointly and severally liable to pay an amount that would be payable by the partnership;
(c) any offence against this Division that would otherwise be committed by the partnership is taken to have been committed by each partner who:
(i) aided, abetted, counselled or procured the relevant act or omission; or
(ii) was in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the partner).
This Division applies to an unincorporated company as if the company were a person, but it applies with the following changes:
(a) obligations that would be imposed on the company are imposed instead on each member of the committee of management of the company, but may be discharged by any of those members;
(b) any offence against this Division that would otherwise be committed by the company is taken to have been committed by each member of the committee of management of the company who:
(i) aided, abetted, counselled or procured the relevant act or omission; or
(ii) was in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the member).
A person who is dissatisfied with any of the following decisions may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953 :
(a) a refusal to determine under subsection 220AAB(3) that a person is not a large remitter in relation to particular months;
(b) a decision to revoke or vary a determination under subsection 220AAB(3) that a person is not a large remitter in relation to particular months;
(c) a determination under subsection 220AAC(1) that a person is a large remitter in relation to particular months;
(d) a refusal to determine under subsection 220AAJ(3) that a person is not a medium remitter in relation to particular months;
(e) a decision to revoke or vary a determination under subsection 220AAJ(3) that a person is not a medium remitter in relation to particular months;
(f) a determination under subsection 220AAK(1) that a person is a medium remitter in relation to particular months;
(g) a decision referred to in subsection 220AAW(2) (remission of penalties).
In this Division:
government body
means the Commonwealth, a State, a Territory or an authority of the Commonwealth, a State or a Territory.
person
means any of the following:
(a) a company;
(b) a partnership;
(c) a person in a particular capacity of trustee;
(d) a government body;
(e) any other person.
Note 1:
Section 220AAZD sets out additional rules about partnerships.
Note 2:
Section 220AAZE sets out additional rules about unincorporated companies.
prescribed payment
has the same meaning as in Division
3A
.
reportable payment
has the same meaning as in Division
1AA
.
salary or wages
has the same meaning as in Division
2
.
The object of this Division is to facilitate the efficient collection of tax by:
(a) providing for payers of certain payments ( ``reportable payments'' ) to make deductions from those payments if the payee's tax file number is not quoted; and
(b) requiring payers of reportable payments to give reports to the Commissioner about those payments.
The following table sets out an outline of this Division:
| Topic | Provision(s) | |
| Reportable payments | ||
| - | definition | sections 220AC and 220ADA |
| Deductions by payer from reportable payments | ||
| - | obligation to deduct | section 220AF |
| - | receipts | section 220AH |
| - | exemption for pensioners | section 220AP |
| - | refunds | section 220AR |
| - | civil penalties for breach of deduction rules | sections 220AS to 220AW |
| - | civil protection for payers | section 220AX |
| - | recovery by Commissioner | section 220AY |
| - | tax credits | sections 220AZ to 220AZC |
| Reports by payer to Commissioner | ||
| - | annual reports | section 220AJ |
| - | retention requirements | section 220AK |
| Quotation of tax file number by payee | ||
| - | method | section 220AL |
| - | tax file number declarations | sections 220AM to 220AO |
| - | payer to send declaration forms to Commissioner | section 220AQ |
| Pensioners | ||
| - | exemption | section 220AP |
| - | payer to send declaration forms to Commissioner | section 220AQ |
Amounts deducted under this Division must be paid to the Commissioner in accordance with Division 1AAA .
In this Division:
"arrangement"
means any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings;
Note:
This definition is only used in section 220AQ .
"exempt inter-corporate payment"
means a payment made by a company (other than in the capacity of trustee) to another company (other than in the capacity of trustee) where, at the time of the payment:
(a) one of those companies is a subsidiary of the other company; or
(b) each of those companies is a subsidiary of a third company;
Note:
This definition is only used in paragraph (e) of the definition of ``reportable payment'' .
"government body"
means the Commonwealth, a State, a Territory or an authority of the Commonwealth, a State or a Territory;
"payee"
means a person who receives, or is entitled to receive, a reportable payment;
"payer"
means a person who makes, or has made, a reportable payment;
"payment"
has a meaning affected by section
220AD
;
"pensioner exemption declaration"
has the meaning given by section
220AP
;
"pensioner exemption declaration form"
has the meaning given by section
220AP
;
"person"
means any of the following:
(a) a company;
(b) a partnership;
(c) a person in a particular capacity of trustee;
(d) a government body;
(e) any other person;
Note 1:
Section 220AZF sets out additional rules about partnerships.
Note 2:
Section 220AZG sets out additional rules about unincorporated companies.
"reportable payment"
means a payment that:
(a) is declared by the regulations to be a reportable payment for the purposes of this Division; and
(b) is assessable income; and
(c) is not a payment of salary or wages within the meaning of section 221A ; and
(d) is not a prescribed payment within the meaning of section 221YHA ; and
(e) is not an exempt inter-corporate payment;
Note 1:
``Exempt inter-corporate payment'' is defined by this section.
Note 2:
Section 220ADA clarifies the definition of reportable payment .
"signed"
has the meaning given by section
220AE
;
"subsidiary"
has the same meaning as in section
221ED
;
Note:
This definition is only used in paragraphs (a) and (b) of the definition of ``exempt inter-corporate payment'' .
"tax file number"
has the meaning given by section
202A
;
"tax file number declaration"
has the meaning given by section
220AM
;
"tax file number declaration form"
has the meaning given by section
220AM
.
For the purposes of this Division, if money is not actually paid to a person but is reinvested, accumulated, capitalised or otherwise dealt with on behalf of the person, or as the person directs, the money is taken to be paid to the person when it is so reinvested, accumulated, capitalised or otherwise dealt with.
To avoid doubt, if:
(a) a debt is owed to a person; and
(b) a payment in satisfaction of the debt would be a reportable payment (see section 220AC ); and
(c) the person transfers the whole or part of the debt to another person in return for a payment;
the last-mentioned payment is a reportable payment .
For the purposes of this Division, a natural person is taken to have signed a document if, and only if, the document is signed by:
(a) the person; or
(b) a person declared by the regulations to be a signatory for the purposes of this subsection. 220AE(2) Persons other than natural persons.
For the purposes of this Division, a person other than a natural person is taken to have signed a document if, and only if, the document is signed by a person declared by the regulations to be a signatory for the purposes of this subsection.
(a) a payer makes a reportable payment to a payee; and
(b) the payee has not quoted his or her tax file number to the payer in connection with the payment; and
(c) the payment is made on or after 1 December 1994 and before 1 July 2000.
Note 1:
See section 220AL for the method of quoting tax filenumbers.
Note 2:
The making of a pensioner exemption declaration is an alternative to quotation of a tax file number - see section 220AP .
(a) 48.4% of the payment; or
(b) if another percentage is specified in regulations made for the purposes of this subsection - that percentage of the payment.
If working out the relevant percentage results in an amount of dollars and cents, the cents are to be disregarded.
220AF(3) Offence.A person (other than a government body) who contravenes this section is guilty of an offence punishable on conviction by a maximum fine of 10 penalty units.
Note:
See section 220AS for an alternative civil penalty for contravening this section.
(Repealed by No 47 of 1998)
This section applies if a payer deducts an amount under this Division from a reportable payment.
220AH(2) Receipt to be given.The payer must give the payee, at the time of the payment or as soon as practicable afterwards, a written receipt, invoice or similar document setting out:
(a) the payer's name and address; and
(b) the payee's name (if known to the payer); and
(c) the payee's address (if known to the payer); and
(d) the date on which the payment was made; and
(e) the amount of the payment; and
(f) the amount deducted. 220AH(3) Receipt to be in English and signed.
A document given by a payer under subsection (2) must be:
(a) in the English language; and
(b) signed by the payer.
Penalty: 1 penalty unit.
(Repealed by No 47 of 1998)
A payer who makes one or more reportable payments during a financial year ending on or before 30 June 2000 must:
(a) send to the Commissioner a written report setting out, in respect of each payee:
(i) the payee's tax file number (if quoted to the payer); and
(ii) if the payee's tax file number was not quoted to the payer but the payee made a pensioner exemption declaration to the payer:
(A) a statement to that effect; and
(B) the type of pension or benefit specified in the pensioner exemption declaration form concerned; and
(iii) the payee's name (if known to the payer); and
(iv) the payee's address (if known to the payer); and
(v) the total amount of the reportable payments made by the payer to the payee during the financial year; and
(vi) the total amount (if any) deducted by the payer under this Division from those payments; and
(b) make a copy of the report.
Note:
Section 220AK deals with retention of the copies.
A report under subsection (1) relating to a financial year must be given to the Commissioner within 2 months after the end of that financial year or before such later date as the Commissioner allows.
220AJ(3) Form of report.The report must be in a form approved by the Commissioner.
220AJ(4) Section not to apply to pre-1 December 1994 payments.This section does not apply to a reportable payment made before 1 December 1994.
Penalty: 20 penalty units.
220AJ(5) [Liability to late reconciliation statement penalty]If the payer fails to give the Commissioner the report by the time by which it must be given to the Commissioner, the payer is liable to pay the late reconciliation statement penalty.
Note:
The late reconciliation statement penalty is worked out under Division 3 of Part IIA of the Taxation Administration Act 1953 .
(Repealed by No 47 of 1998)
A person who makes a copy of a report under paragraph 220AJ(1)(b) in relation to a financial year must retain the copy for at least 5 years after the end of the financial year.
Penalty: 20 penalty units.
A payee is taken to have quoted his or her tax file number to a payer in connection with a reportable payment if a tax file number declaration made to the payer by the payee is in force when the payment is made.
Note:
See subsection 220AM(2) for the definition of ``making a tax file number declaration'' .
A ``tax file number declaration form'' is a document, in a form approved by the Commissioner for the purposes of this section, that (in addition to anything else that it requires or permits) enables the person completing the form to state his or her tax file number.
220AM(2) Making a tax file number declaration.If a person (the
``first person''
) completes the form and gives it to another person, the first person is said to make a
``tax file number declaration''
to the other person at the time when the form is given.
Note:
The first person would normally be a payee and the other person would normally be a payer.
A tax file number declaration made by a person (the ``first person'' ) to another person (the ``second person'' ) is in force at all times after it is made until any of the following happens:
(a) 29 days pass after the declaration is made without an obligation being imposed on the second person under section 220AQ in relation to the tax file number declaration form concerned;
(b) one year passes after the second person makes a reportable payment to the first person (being a payment made when the declaration is in force) without the first person again becoming entitled to receive a reportable payment from the second person;
(c) the first person makes another tax file number declaration to the second person;
(d) the Commissioner, by notice in the Gazette , determines that:
(i) all tax file number declarations cease to be in force; or
(ii) a specified class of tax file number declarations that includes the particular tax file number declaration ceases to be in force;
(e) the declaration ceases to be in force because of subsection (2).
Note:
The first person would normally be a payee and the second person would normally be a payer.
220AN(2) Cancellation - no tax file number.A tax file number declaration ceases to be in force if:
(a) the Commissioner is satisfied that the tax file number stated in the declaration form:
(i) has been cancelled since the form was given; or
(ii) is for any other reason not the first person's tax file number; and
(b) the Commissioner is not satisfied that the first person has a tax file number; and
(c) the Commissioner, by written notice given to the second person and the first person:
(i) informs them accordingly; and
(ii) states that the declaration ceases to be in force on a specified day (which must not be earlier than the day on which the notice is given to the first person).
In such a case, the declaration ceases to be in force on the day specified in the notices.
220AN(3) Notification of decisions.If the Commissioner gives the first person a notice under subsection (2), the Commissioner must, together with the notice, give the first person a written statement of the reasons for the decision to give the notice.
(a) the Commissioner is satisfied that the tax file number stated in a tax file number declaration form:
(i) has been cancelled or withdrawn since the form was given; or
(ii) is otherwise wrong; and
(b) the Commissioner is satisfied that the person who gave the form (the ``first person'' ) has a tax file number;
the Commissioner may give the person to whom the declaration was made (the ``second person'' ) written notice of the incorrect statement and of the correct tax file number.
Note:
The first person would normally be a payee and the second person would normally be a payer.
220AO(2) [Correct tax file number to be stated]If the Commissioner does so, the second person must, in any document under this Division requiring the first person's tax file number that the second person completes after that time (before another tax file number declaration is made by the first person to the second person), state that correct tax file number.
This section applies to the following pensions and benefits:
(a) an age pension under Part 2.2 of the Social Security Act 1991 ;
(b) a disability support pension under Part 2.3 of that Act;
(c) a wife pension under Part 2.4 of that Act;
(d) a carer pension under Part 2.5 of that Act;
(e) (Repealed by No 197 of 1997);
(f) a widow B pension under Part 2.8 of that Act;
(fa) a parenting payment that is a pension PP (single) under Part 2.10 of that Act;
(g) a special benefit under Part 2.15 of that Act;
(h) a special needs pension under Part 2.16 of that Act;
(i) a pension under Part III of the Veterans' Entitlements Act 1986 .
For the purposes of this Division, a payee is taken to have quoted his or her tax file number to a payer in connection with a reportable payment if a pensioner exemption declaration made to the payer by the payee is in force when the payment is made. However, this rule does not apply for the purposes of section
220AJ
(which deals with annual reports by payers).
Note:
See subsection (4) for the definition of ``making a pensioner exemption declaration'' .
220AP(3) Pensioner exemption declaration form.A ``pensioner exemption declaration form'' is a document, in a form approved by the Commissioner for the purposes of this section, that (in addition to anything else that it requires or permits) enables the person completing the form to state that he or she is being paid a pension or benefit.
220AP(4) Making a pensioner exemption declaration. </