Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 14 - Benefits, gains and taxable supplies for which amounts must be paid to the Commissioner  

Subdivision 14-B - Accruing gains  

SECTION 14-55   LIABILITY FOR TFN WITHHOLDING TAX  

14-55(1)  
*TFN withholding tax is payable if:


(a) in relation to a *Part VA investment, an amount (the accrued gain ) is included in the *investor ' s assessable income for an income year under section 159GQ of the Income Tax Assessment Act 1936 (about gains accruing on securities); and


(b) the investment:


(i) is of a kind mentioned in item 1 or 2 of the table in subsection 202D(1) of that Act; or

(ii) is of a kind mentioned in item 3 of that table and is non-transferable; and


(c) the term of the investment does not end during the income year; and


(d) section 12-140 would have required the *investment body to withhold an amount (the TFN withholding amount ) from a payment of the accrued gain to the investor, if the investment body had made the payment at the end of the income year and section 12-150 had not been enacted.

Note:

Section 202D of the Income Tax Assessment Act 1936 lists the investments in connection with which tax file numbers are to be quoted.

14-55(2)  
The amount of *TFN withholding tax is equal to the TFN withholding amount.

14-55(3)  
The *TFN withholding tax is payable jointly and severally by the *investor and the *investment body.

14-55(4)  
However, if the *investment body is the Commonwealth or an *untaxable Commonwealth entity:


(a) the *TFN withholding tax is payable by the *investor; and


(b) the investor is taken to have authorised the investment body to pay the TFN withholding tax on the investor ' s behalf.

14-55(5)  
The *TFN withholding tax is due and payable at the end of 21 days after the end of the income year referred to in paragraph (1)(a).

Note 1:

When it is due and payable, the TFN withholding tax is payable to the Commissioner: see paragraph 255-5(1)(b) .

Note 2:

An entity by whom it is payable must pay it to the Commissioner in accordance with Subdivision 16-B : see subsection 16-70(3) . If any of it remains unpaid, the entity is liable to pay general interest charge: see section 16-80 .

Note 3:

The Commissioner may defer the time at which TFN withholding tax becomes due and payable: see section 255-10 .

14-55(6)  
The adoption (under section 18 of the Income Tax Assessment Act 1936 ) of an accounting period ending on a day other than 30 June is disregarded for the purposes of:


(a) this section; and


(b) the application of Division 16E of Part III of that Act for the purposes of this section.


 

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