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 12A - Distributions by AMITs (including deemed payments)  

Subdivision 12A-C - Deemed payments by AMITs etc.  

Operative provisions

SECTION 12A-215   AMIT PAYMENT TO THE COMMISSIONER IN RESPECT OF DEEMED PAYMENTS TO OFFSHORE ENTITIES ETC.  

12A-215(1)  
A trustee of a trust that is an *AMIT for an income year must pay an amount to the Commissioner if:


(a) (Repealed by No 15 of 2019)


(b) the trustee makes a payment (the deemed payment ) that arises because of the operation of section 12A-205 ; and


(c) the payment is made to an entity (the recipient ) that is:


(i) if the payment is a *fund payment and the trust is a *withholding MIT in relation to the income year - an entity covered by section 12-410 ; or

(ii) if the payment is an *AMIT DIR payment made in relation to the income year - an entity that is not an Australian resident.
Note 1:

An entity may be covered by section 12-410 if the entity has an address outside Australia or payment is authorised to be made to a place outside Australia.

Note 2:

If the payment is made to a recipient not covered by subparagraph (c)(i) or (ii), the trustee is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see sections 12-395 and 12A-15 .

12A-215(2)  
The amount that the trustee must pay is equal to the amount that the trustee would, if the assumptions in subsection (3) were made, have had to withhold under:


(a) if the deemed payment is a *fund payment - section 12-385 ; or


(b) if the deemed payment is an *AMIT DIR payment - section 12-210 , 12-245 or 12-280 .

12A-215(3)  
The assumptions are that:


(a) the deemed payment had not arisen because of the operation of section 12A-205 ; and


(b) the deemed payment had instead been an actual payment; and


(c) if the deemed payment is an *AMIT DIR payment:


(i) where it corresponds to the character of a dividend (as defined in Division 11A of Part III of the Income Tax Assessment Act 1936 ) that is subject to a requirement to withhold under Subdivision 12-F - the trust had been a company, and it had paid it as a dividend; or

(ii) where it corresponds to the character of interest (as defined in Division 11A of Part III of the Income Tax Assessment Act 1936 ) that is subject to a requirement to withhold under Subdivision 12-F - it were the payment of interest; or

(iii) where it corresponds to the character of a *royalty that is subject to a requirement to withhold under Subdivision 12-F - it were the payment of a royalty; and


(d) if the deemed payment is an AMIT DIR payment - the condition in either or both of paragraphs 12-210(a) or (b), of paragraphs 12-245(a) or (b) or of paragraphs 12-280(a) or (b) (as the case requires) were satisfied.

12A-215(4)  
The trustee may recover from the recipient as a debt an amount that the trustee has paid to the Commissioner under subsection (1).

12A-215(5)  
The trustee is entitled to set off an amount that the trustee can recover from the recipient under subsection (4) against debts due by the trustee to the recipient.


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.