| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051241649657
Date of advice: 05 July 2017
Ruling
Subject: Pay as you go withholding
Question
Is there an obligation on the entity to withhold from payments made to individuals under section 12-35 of Schedule 1 to the Taxation Administration Act 1953 (TAA)?
Answer
No
After considering your facts against the relevant indicators, we accept that there is no obligation on you to withhold from payments made to individuals as they are not employees. Further information on the Commissioner’s view can be found in Taxation Ruling TR 2005/16 Income tax: Pay As You Go - withholding from payments to employees.
This ruling applies for the following periods:
Year ended 30 June 2017
Year ended 30 June 2018
Year ended 30 June 2019
Year ended 30 June 2020
Year ended 30 June 2021
The scheme commences on:
1 July 2016
Relevant facts and circumstances
As part of the entity's operations it invites persons to perform certain tasks.
The persons who perform these tasks receive payments in respect of performing the tasks. They are paid on a one-off basis and there are different payments for different tasks.
Each year a large number of persons perform tasks for the entity.
Persons performing the tasks must be independent of the entity to ensure they are free from bias and the persons all have expertise in the area of the specific task.
None of the persons performing the tasks are employees of the entity (they do not sign employment contracts with the entity). The entity is under no legal obligation to pay the persons.
Persons performing these tasks may elect to not receive payment for performing a task.
Persons do not need to travel to the entity to perform the tasks and incur no expenses.
Typically, persons will spend a few days performing a task.
The majority of persons used only perform a small number of tasks in their entire careers.
Relevant legislative provisions
Taxation Administration Act 1953 Section 12-35 to Schedule 1