Commonwealth: A New Tax System (Tax Administration) Act 1999 (Cth)

A New Tax System (Tax Administration) Act 1999 Act No. 179 of 1999 as amended This compilation was prepared on 15 May 2003 [This Act was amended by Act No. 44 of 2000] [Schedule 3 (item 4) amended subitem 2(4) of Schedule 2 Schedule 3 (item 4) commences on 22 December 1999] [This Act was amended by Act No. 91 of 2000] Schedule 2 (item 1A) amended Schedule 2 (subitem 2(3)) Schedule 3 (item 17) repealed Schedule 18 (items 26, 27) For application see Schedule 3 (item 18) Schedule 2 (item 1A) commenced on 1 July 2000 Schedule 3 (items 17, 18) commenced on 22 December 1999] [This Act was amended by Act No. 57 of 2002] Schedule 12 (item 41) amended Schedule 6 (item 22) Schedule 12 (item 42) amended Schedule 11 (item 33) Schedule 12 (item 41) commenced on 22 December 1999 Schedule 12 (item 42) commenced on 1 July 2000] [This Act was amended by Act No. 30 of 2003] Schedule 2 (item 90) repealed and substituted Schedule 5 (items 67 and 68) Schedule 2 (item 90) commenced on 1 July 2000] Prepared by the Office of Legislative Drafting, Attorney‑General's Department, Canberra Contents 1 Short title................................... 2 Commencement............................... 3 Schedule(s).................................. Schedule 1—Pay as you go (PAYG) withholding Part 1—Amendment of the Taxation Administration Act 1953 Division 15—Working out the amount to withhold Guide to Division 15 15‑1......................What this Division is about Subdivision 15‑A—Working out how much to withhold 15‑10........................How much to withhold 15‑15...........Variation of amounts required to be withheld Subdivision 15‑B—Withholding schedules and regulations 15‑25.....Commissioner's power to make withholding schedules 15‑30.Matters to be considered when making withholding schedules 15‑35...................Regulations about withholding Subdivision 15‑C—Declarations 15‑50..............................Declarations When to withhold Part 2—Amendment of A New Tax System (Family Assistance) (Administration) Act 1999 Part 3—Application and saving Schedule 2—Collection and recovery rules Part 1—Amendment of the Taxation Administration Act 1953 Part 4‑15—Collection and recovery of tax‑related liabilities and other amounts Division 250—Introduction Subdivision 250‑A—Guide to Part 4‑15 250‑1........................What this Part is about 250‑5................Some important concepts about tax‑related liabilities 250‑10...........................Summary of tax‑related liabilities Subdivision 250‑B—Object of this Part 250‑25.................................Object Division 255—General rules about collection and recovery Subdivision 255‑A—Tax‑related liabilities 255‑1..............................Meaning of tax‑related liability 255‑5...........................Recovering a tax‑related liability that is due and payable Subdivision 255‑B—Commissioner's power to vary payment time 255‑10.....................To defer the payment time 255‑15................To permit payments by instalments 255‑20......To bring forward the payment time in certain cases Subdivision 255‑C—Recovery proceedings Guide to Subdivision 255‑C 255‑35..................What this Subdivision is about Operative provisions 255‑40Service of documents if person absent from Australia or cannot be found 255‑45.......................Evidentiary certificate 255‑50..................Certain statements or averments 255‑55........................Evidence by affidavit Division 260—Special rules about collection and recovery Guide to Division 260 260‑1.....................What this Division is about Subdivision 260‑A—From third party 260‑5......Commissioner may collect amounts from third party 260‑10..........Notice to Commonwealth, State or Territory 260‑15...............................Indemnity 260‑20................................Offence Subdivision 260‑B—From liquidator 260‑40Subdivision does not apply to superannuation guarantee charge 260‑45.......................Liquidator's obligation 260‑50................................Offence 260‑55..............Joint liability of 2 or more liquidators 260‑60.............Liquidator's other obligation or liability Subdivision 260‑C—From receiver 260‑75........................Receiver's obligation 260‑80................................Offence 260‑85...............Joint liability of 2 or more receivers 260‑90..............Receiver's other obligation or liability Subdivision 260‑D—From agent winding up business for non‑resident principal 260‑105.......Obligation of agent winding up business for non‑resident principal 260‑110...............................Offence 260‑115................Joint liability of 2 or more agents 260‑120...............Agent's other obligation or liability Subdivision 260‑E—From deceased person's estate 260‑140........................Administered estate 260‑145.......................Unadministered estate 260‑150....Commissioner may authorise amount to be recovered Division 265—Other matters Subdivision 265‑A—Right of person to seek recovery or contribution Guide to Subdivision 265‑A 265‑35..................What this Subdivision is about Operative provisions 265‑40...........Right of recovery if another person is liable 265‑45........Right of contribution if persons are jointly liable Subdivision 265‑B—Application of laws 265‑65..................................Non‑application of certain taxation laws 265‑70..........................Application of the Criminal Code Part 5‑1—The Australian Taxation Office Division 353—Powers to obtain information and evidence 353‑10.......................Commissioner's power Part 5‑45—Application of taxation laws to certain entities Division 444—Entities that are not legal persons 444‑5..............................Partnerships 444‑10.....................Unincorporated companies 444‑15........................Superannuation funds Part 2—Consequential amendment of Acts A New Tax System (Goods and Services Tax) Act 1999 Fringe Benefits Tax Assessment Act 1986 Income Tax Assessment Act 1936 Petroleum Resource Rent Tax Assessment Act 1987 Sales Tax Assessment Act 1992 Superannuation Contributions Tax (Assessment and Collection) Act 1997 Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 Superannuation Guarantee (Administration) Act 1992 Taxation Administration Act 1953 20‑45Offences that would otherwise be committed by a partnership or unincorporated company Termination Payments Tax (Assessment and Collection) Act 1997 Tobacco Charges Assessment Act 1955 Wool Tax (Administration) Act 1964 Part 3—Saving provisions Schedule 3—Binding oral advice on income tax matters Part 1—Amendment of the Taxation Administration Act 1953 Part 5‑5—Rulings Division 360—Oral rulings for individuals Guide to Division 360 360‑1.....................What this Division is about 360‑5.......................Outline of this Division Subdivision 360‑A—Applying for an oral ruling 360‑20.........Application for oral ruling about your own tax 360‑25......Application for oral ruling about someone else's tax 360‑30..................What the application can cover 360‑35................How the application is to be made 360‑40................Further information may be sought Subdivision 360‑B—How the Commissioner is to deal with the application Exercise of powers by delegate 360‑60.... Delegated power must be exercised at specified place If the application relates only to basic categories 360‑65...........When Commissioner must make oral ruling 360‑70..............Basic categories of assessable income 360‑75................Basic categories of exempt income 360‑80...................Basic categories of deductions 360‑85...................Basic categories of tax offsets If the application involves additional categories 360‑100When Commissioner must make oral ruling if satisfied that your tax affairs and inquiry are simple 360‑105..........Additional categories of assessable income 360‑110...............Additional categories of deductions 360‑115...............Additional categories of tax offsets If the application is successful 360‑120.......................Making the oral ruling Subdivision 360‑C—When Commissioner must or can refuse the application 360‑140.........Aspects of your tax affairs that disqualify you 360‑145.Other grounds on which application must or can be refused 360‑150...............Assumptions in making oral ruling 360‑155.....Effect on oral ruling if provisions not complied with Subdivision 360‑D—Miscellaneous 360‑175Application for oral ruling does not affect obligations and powers 360‑180................Effect on oral ruling if tax law re‑enacted Part 2—Consequential amendment of Act Income Tax Assessment Act 1936 170BCA Effect of oral ruling on tax other than withholding tax......... 170BDA Assessment of tax other than withholding tax if public and oral rulings conflict 170BDB Assessment of tax other than withholding tax if private and oral rulings conflict 170BDC Assessment of tax other than withholding tax if public, private and oral rulings conflict Schedule 4—Payment, ABN and identification verification system Part 1—Amendment of the Taxation Administration Act 1953 Part 5‑30—Payment, ABN and identification verification system Division 400—Guide to Part 5‑30 400‑1..............................What Part 5‑30 is about 400‑5...The payment, ABN and identification verification system Division 405—Transaction reporting by purchasers 405‑5.............Payments to which this Division applies 405‑10.......................Reporting requirements 405‑15.................Invoices produced by purchasers Division 410—Transaction reporting by suppliers 410‑5.............Payments to which this Division applies 410‑10.......................Reporting requirements 410‑15.................Invoices produced by purchasers Division 415—Verification of suppliers' ABNs by purchasers 415‑5.............Payments to which this Division applies 415‑10..................ABN verification requirements 415‑15..............Method of obtaining ABN verification 415‑20..............Verification applies to later payments Division 417—Verification of suppliers' identities by purchasers 417‑5.............Payments to which this Division applies 417‑10.................Identity verification requirements 417‑15............Method of obtaining identity verification 417‑20..............Verification applies to later payments Division 420—Penalties for not reporting or verifying 420‑5..............Failing to report or verify: civil penalty Division 425—Other matters 425‑20........................Constructive payment 425‑25..................................Non‑cash benefits 425‑30........Amounts to be expressed in Australian currency Part 2—Application of amendments Schedule 5—TFN declarations and certain annual reports Part 1—Amendments Income Tax Assessment Act 1936 202AA Definition of eligible PAYG payment Division 3—Quotation of tax file numbers by recipients of eligible PAYG payments 202C TFN declarations by recipients of eligible PAYG payments..... 202CC Making a replacement TFN declaration in place of an ineffective declaration 202CF Payer must notify Commissioner if no TFN declaration by recipient Social Security Act 1991 Social Security Administration Act 1999 Taxation Administration Act 1953 16‑153Annual reports about withholding payments and reportable fringe benefits Veterans' Entitlements Act 1986 Part 2—Application and transitional Schedule 6—Shorter period of review (SPOR) taxpayers Part 1—Income Tax Assessment Act 1936 6AD Shorter period of review taxpayer..................... Part 2—Taxation Administration Act 1953 18‑100..............Obligation to keep payment summary Part 3—Application of amendments Schedule 7—Endorsement of deductible gift recipients Income Tax Assessment Act 1997 30‑17................Requirements for certain recipients Subdivision 30‑BA—Endorsement of deductible gift recipients Guide to Subdivision 30‑BA 30‑115..................What this Subdivision is about Endorsement as a deductible gift recipient 30‑120..................Endorsement by Commissioner 30‑125....................Entitlement to endorsement 30‑130.....................Applying for endorsement 30‑135..........Dealing with an application for endorsement 30‑140.......Notifying outcome of application for endorsement 30‑145...................Date of effect of endorsement 30‑150.................Review of refusal of endorsement 30‑155..............Checking entitlement to endorsement 30‑160.Telling Commissioner of loss of entitlement to endorsement 30‑165.............Partnerships and unincorporated bodies 30‑170.......................Revoking endorsement 30‑175..............Review of revocation of endorsement Government entities treated like entities 30‑180.....How this Subdivision applies to government entities Subdivision 30‑CA—Administrative requirements relating to ABNs Guide to Subdivision 30‑CA 30‑226..................What this Subdivision is about Requirements 30‑227............Entities to which this Subdivision applies 30‑228.....................Content of receipt for gift 30‑229Australian Business Register must show deductibility of gifts to deductible gift recipient Schedule 8—Endorsing entities as exempt from income tax Income Tax Assessment Act 1997 50‑52.......Special condition for items 1.1, 1.5, 1.5A and 1.5B 50‑57....................Special condition for item 1.5 Subdivision 50‑B—Endorsing charitable entities as exempt from income tax Guide to Subdivision 50‑B 50‑100..................What this Subdivision is about Endorsing charitable entities as exempt from income tax 50‑105..................Endorsement by Commissioner 50‑110....................Entitlement to endorsement 50‑115.....................Applying for endorsement 50‑120..........Dealing with an application for endorsement 50‑125.......Notifying outcome of application for endorsement 50‑130...................Date of effect of endorsement 50‑135.................Review of refusal of endorsement 50‑140..............Checking entitlement to endorsement 50‑145.Telling Commissioner of loss of entitlement to endorsement 50‑150.............Partnerships and unincorporated bodies 50‑155.......................Revoking endorsement 50‑160..............Review of revocation of endorsement Schedule 9—ABNs Part 1—ABNs for government entities A New Tax System (Australian Business Number) Act 1999 Part 2—Changes relating to tax‑deductible gifts A New Tax System (Australian Business Number) Act 1999 Part 3—Technical correction A New Tax System (Australian Business Number) Act 1999 Schedule 10—Pay as you go (PAYG) system of collecting income tax etc. liabilities Part 1—Amendment of the Taxation Administration Act 1953 12‑60Payment under labour hire arrangement, or specified by regulations 45‑130.............Individual stops paying on basis of GDP‑adjusted notional tax if he or she becomes GST registered 45‑230Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate 45‑232Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax 45‑233...........Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax 45‑410................Working out amount of instalment 45‑415..................Estimating your benchmark tax 45‑420...Credit in certain cases where amount of instalment is nil Part 2—Amendment of other Acts A New Tax System (Pay As You Go) Act 1999 Income Tax Assessment Act 1936 Schedule 11—PAYG withholding consequential amendments Aboriginal Land Rights (Northern Territory) Act 1976 Bankruptcy Act 1966 Child Support (Registration and Collection) Act 1988 Crimes (Taxation Offences) Act 1980 Defence Act 1903 Higher Education Funding Act 1988 Income Tax Assessment Act 1936 221YHZXAExtended operation of certain provisions of the Taxation Administration Act 221YHZXB.................Penalty for failure to pay within time Division 8—Prompt recovery, through estimates and payment agreements, of certain amounts not remitted Subdivision B—Company failing to remit deductions, amounts withheld etc. 222AOBADirectors to cause company to remit or to go into voluntary administration or liquidation—non‑cash benefits Income Tax Assessment Act 1997 34‑5...........This Division applies to employees and others 900‑135................Evidence on a payment summary Income Tax Rates Act 1986 Public Service Act 1922 Social Security Act 1991 Taxation Administration Act 1953 Taxation (Interest on Overpayments and Early Payments) Act 1983 Veterans' Entitlements Act 1986 Schedule 12—Civil penalties A New Tax System (Goods and Services Tax) Act 1999 Income Tax Assessment Act 1936 221AZKD....................Notification of deferred payments Taxation Administration Act 1953 16‑45...............Remission of penalty under section 16‑30 or 16‑40 Part 4‑25—Charges and civil penalties for failing to meet obligations Division 288—Electronic notification and payment 288‑5..............Electronic notification of BAS amounts 288‑10............................Penalty for non‑electronic notification 288‑15..................Electronic payment of tax debts 288‑20............................Penalty for non‑electronic payment Division 298—Machinery provisions for civil penalties 298‑5...........................Scope of Division 298‑10.......................Notification of liability 298‑15.........................Due date for penalty 298‑20........................Remission of penalty 298‑25............General interest charge on unpaid penalty Schedule 13—Delayed refund interest Taxation (Interest on Overpayments and Early Payments) Act 1983 Part IIIAA—Delayed refund interest on running balance account (RBA) surpluses 12AA Entitlement to interest for RBA surpluses after notification of BAS amount 12AB Entitlement to interest for RBA surpluses after request for remission 12AC Entitlement to interest for RBA surpluses after request for refund.. 12AD Period of interest for RBA surpluses................... 12AE Rate of interest for RBA surpluses.................... 12AF Definitions.................................. Schedule 14—PAYG withholding registration Taxation Administration Act 1953 Subdivision 16‑BA—To be registered Registration of withholders 16‑140..................Withholders must be registered 16‑141...................Registration and cancellation Branch registration 16‑142....................Branches may be registered 16‑143...........Separate amounts for entities and branches 16‑144................Cancellation of branch registration 16‑145...Effect on branches of cancelling the entity's registration Schedule 15—Consequential amendment of indirect tax law A New Tax System (Goods and Services Tax) Act 1999 35‑5.........................Entitlement to refund 51‑60..............Refunds relating to GST joint ventures 54‑65.................Refunds relating to GST branches A New Tax System (Wine Equalisation Tax) Act 1999 Taxation Administration Act 1953 Schedule 16—PAYG instalments consequential amendments Crimes (Taxation Offences) Act 1980 Higher Education Funding Act 1988 Income Tax Assessment Act 1936 161AA Contents of returns of full self‑assessment taxpayers.... Income Tax Assessment Act 1997 Taxation (Interest on Overpayments and Early Payments) Act 1983 Schedule 17—Savings rebate Income Tax Assessment Act 1936 Schedule 18—Consequential amendment of Chapter 6 (the Dictionary) of the Income Tax Assessment Act 1997 An Act to implement A New Tax System by amending the law about taxation and Australian Business Numbers, and for related purposes 1 Short title This Act may be cited as the A New Tax System (Tax Administration) Act 1999. 2 Commencement (1) Subject to this section, this Act commences, or is taken to have commenced, immediately after the commencement of section 1 of the A New Tax System (Pay As You Go) Act 1999. (2) Item 21 of Schedule 12 commences immediately after the commencement of item 1 of Schedule 2. (3) Item 3 of Schedule 2 commences immediately after the commencement of item 21 of Schedule 12. (4) Schedule 3 commences immediately after the commencement of item 3 of Schedule 2. (5) Schedule 4 commences immediately after the commencement of Schedule 3. (6) Item 4 of Schedule 2 commences immediately after the commencement of Schedule 4. (7) The following provisions commence on the day on which this Act receives the Royal Assent: (a) section 1, this section and section 3; (b) Part 2 of Schedule 5, and the amendments of the Taxation Administration Act 1953 made by Part 1 of that Schedule; (c) items 1 to 22 and 24 of Schedule 6; (d) Schedules 7, 8, 9 and 17; (e) items 16 and 20 of Schedule 18. (8) Items 94 to 102 of Schedule 2 commence immediately after the commencement of the A New Tax System (Indirect Tax Administration) Act 1999. (9) The following provisions commence on 1 July 2000: (a) the provisions of Schedule 5 (other than Part 2 of that Schedule and the amendments of the Taxation Administration Act 1953 made by Part 1 of that Schedule); (b) Schedule 11 (other than item 44). (10) If item 4 of Schedule 7 would, apart from this subsection, commence after (or at the same time as) item 10 of Schedule 5 to the Taxation Laws Amendment Act (No. 8) 1999, it is taken to have commenced immediately before the commencement of item 10 of Schedule 5 to that Act. This has effect despite paragraph (7)(d). (11) Subsection 2(1A) of the A New Tax System (Pay As You Go) Act 1999 (inserted by item 19 of Schedule 10 to this Act) commences, or is taken to have commenced, at the commencement of section 1 of that Act. (12) Schedules 12 (other than item 21) and 15 commence, or are taken to have commenced, at the commencement of the A New Tax System (Goods and Services Tax) Act 1999. (13) Items 2, 3 and 4 of Schedule 13 commence immediately after the commencement of item 34 of Schedule 16. (14) Items 4, 5, 17, 21 and 32 of Schedule 18 commence, or are taken to have commenced, at the commencement of the A New Tax System (Goods and Services Tax) Act 1999. 3 Schedule(s) Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. Schedule 1—Pay as you go (PAYG) withholding Part 1—Amendment of the Taxation Administration Act 1953 1 Section 14‑15 Repeal the link note, substitute: Division 15—Working out the amount to withhold Table of Subdivisions Guide to Division 15 15‑A Working out how much to withhold 15‑B Withholding schedules and regulations 15‑C Declarations Guide to Division 15 15‑1 What this Division is about This Division is mainly about how to work out how much an entity must withhold under Division 12. In most cases, the entity will need to use either the Commissioner's withholding schedules or the regulations. The entity will also need to take into account a TFN declaration or declaration under section 15‑50 it has been given because, under the schedules and regulations, the declaration may affect how to calculate the amount to withhold. This Division also deals with when an individual can make such a declaration (other than a TFN declaration) so as to change the amount that must be withheld from payments to the individual. Subdivision 15‑A—Working out how much to withhold Table of sections 15‑10 How much to withhold 15‑15 Variation of amounts required to be withheld 15‑10 How much to withhold (1) The amount that Subdivision 12‑B, 12‑C or 12‑D requires to be withheld from a payment is to be worked out under the withholding schedules made under section 15‑25. However, if the regulations prescribe how the amount is to be worked out, then it is to be worked out under the regulations. Note 1: A TFN declaration, declaration under section 15‑50 or voluntary agreement may affect how much is required to be withheld under the withholding schedules or regulations. Note 2: The Commissioner may vary an amount required to be withheld. See section 15‑15. (2) The amount that Subdivision 12‑E, 12‑F or 12‑G (except one covered by section 12‑325) requires to be withheld from a payment is to be worked out under the regulations. Note 1: The amount that section 12‑325 requires to be withheld is worked out under that section. Note 2: The Commissioner may vary an amount required to be withheld. See section 15‑15. 15‑15 Variation of amounts required to be withheld (1) The Commissioner may, for the purposes of meeting the special circumstances of a particular case or class of cases, vary the *amount required to be withheld by an entity from a *withholding payment (except a withholding payment covered by section 12‑140 or 12‑145). If the Commissioner does so, the amount is varied accordingly. Note: Section 12‑140 is about a payment arising from an investment where the recipient does not quote its tax file number (or, in some cases, its ABN). Section 12‑145 is about an investor becoming presently entitled to income of a unit trust. (2) The Commissioner's power to vary an amount includes the power to reduce the amount to nil. (3) A variation must be made by a written notice: (a) if it applies to a particular entity—that is given to that entity; or (b) if it applies to a class of entities—that is given to each of the entities, or a copy of which is published in the Gazette. Subdivision 15‑B—Withholding schedules and regulations Table of sections 15‑25 Commissioner's power to make withholding schedules 15‑30 Matters to be considered when making withholding schedules 15‑35 Regulations about withholding 15‑25 Commissioner's power to make withholding schedules (1) For the purposes of collecting income tax and the other liabilities referred to in paragraphs 11‑1(b) and (c), the Commissioner may make one or more withholding schedules specifying the amounts, formulas and procedures to be used for working out the *amount required to be withheld by an entity from a *withholding payment covered by Subdivision 12‑B, 12‑C or 12‑D. (2) A withholding schedule may deal differently with: (a) different payments; and (b) different circumstances of the recipients of those payments; and (c) different periods in respect of which those payments are made. This subsection does not limit subsection 33(3A) of the Acts Interpretation Act 1901. (3) The Commissioner may withdraw a withholding schedule. (4) A withholding schedule, or the withdrawal of a withholding schedule: (a) only applies if a notice of it is published in the Gazette; and (b) only applies in relation to payments made after the day the notice is published, or after such later day as is specified by the Commissioner in the notice. (5) The Commissioner must make each withholding schedule publicly available. 15‑30 Matters to be considered when making withholding schedules The Commissioner must have regard to the following matters when making a withholding schedule: (a) the rates of income tax as specified in the Income Tax Rates Act 1986; (b) the rates of Medicare levy as specified in the Medicare Levy Act 1986; (c) the rates specified in section 106Q (about repayments of accumulated HEC debts) of the Higher Education Funding Act 1988; (d) any prescribed *tax offsets; (e) the family tax benefit (within the meaning of the A New Tax System (Family Assistance) Act 1999); (f) the periods in respect of which *withholding payments are made; (g) any other prescribed matter. 15‑35 Regulations about withholding (1) For the purposes of collecting income tax and the other liabilities referred to in section 11‑1, the regulations may specify the amounts, formulas and procedures to be used for working out the *amount required to be withheld by an entity from a *withholding payment covered by Division 12 (except one covered by section 12‑325). (2) The regulations may deal differently with: (a) different payments; and (b) different circumstances of the recipients of those payments; and (c) different periods in respect of which those payments are made. This subsection does not limit subsection 33(3A) of the Acts Interpretation Act 1901. Subdivision 15‑C—Declarations Table of sections 15‑50 Declarations 15‑50 Declarations Declarations about prescribed matters (1) An individual who: (a) expects to receive a *withholding payment covered by Subdivision 12‑B, 12‑C or 12‑D from an entity; and (b) wishes to have a prescribed matter relating to the individual's income tax or other liability referred to in paragraph 11‑1(b) or (c) taken into account by the entity in working out the *amount required to be withheld from the payment; may give the entity a declaration about the matter in the *approved form. When declarations under subsection (1) can't be given (2) The individual cannot give a declaration under subsection (1) unless: (a) a *TFN declaration is in effect between the individual and the entity, or a *voluntary agreement covers the payment; and (b) if the individual has given another entity a declaration on a prescribed matter—that declaration is not in effect. Declarations changing information given in TFN declaration (3) If: (a) an individual has given a *TFN declaration to an entity; and (b) the individual made a statement about a prescribed matter in the TFN declaration; and (c) the individual's circumstances change in relation to the matter; the individual may give the entity a declaration about the matter in the *approved form. Regulations (4) The regulations may prescribe: (a) the matters about which a declaration under subsection (1) or (3) may be given; and (b) when a declaration under subsection (1) or (3) starts or ceases to be in effect; and (c) when a declaration under subsection (1) or (3) is taken to have been given. (5) If: (a) an individual gives an entity a declaration under subsection (1) or (3) about a matter; and (b) the individual's circumstances change in relation to the matter; the regulations may also prescribe when the individual must give the entity a new declaration about the matter. 2 Group heading before section 16‑5 in Schedule 1 Repeal the heading, substitute: When to withhold 3 Section 16‑10 in Schedule 1 Repeal the section. 4 Section 16‑15 in Schedule 1 Repeal the section. Part 2—Amendment of A New Tax System (Family Assistance) (Administration) Act 1999 5 Paragraph 10(5)(a) Omit "an employment", substitute "a". 6 Subparagraph 10(5)(a)(i) Omit "the Income Tax Regulations", substitute "section 15‑50 in Schedule 1 to the Taxation Administration Act 1953". Part 3—Application and saving 7 Application of amendments (1) The amendments made by Part 1 apply in relation to a payment made on or after 1 July 2000. (2) A declaration under section 15‑50 in Schedule 1 to the Taxation Administration Act 1953 can only be given on or after 1 July 2000. (3) The amendments made by Part 2 apply to a declaration under section 15‑50 in Schedule 1 to the Taxation Administration Act 1953 that is given, or taken to have been given, on or after 1 July 2000. 8 Saving of declarations A declaration that is effective under Subdivision 2 of Division 2 of Part 7 of the Income Tax Regulations 1936 immediately before 1 July 2000 continues to have effect as if it were a declaration under section 15‑50 in Schedule 1 to the Taxation Administration Act 1953 given on 1 July 2000. Schedule 2—Collection and recovery rules Part 1—Amendment of the Taxation Administration Act 1953 1 At the end of Schedule 1 Add: [The next Division is Division 250.] Part 4‑15—Collection and recovery of tax‑related liabilities and other amounts Division 250—Introduction Table of Subdivisions 250‑A Guide to Part 4‑15 250‑B Object of this Part Subdivision 250‑A—Guide to Part 4‑15 250‑1 What this Part is about This Part deals with the methods by which the Commissioner may collect and recover amounts of taxes and other liabilities. These rules may affect you if you are liable to pay an amount of a tax‑related liability (see, for example, Division 255). Some of the rules may also affect you because of your relationship with someone else who is liable for such an amount (see Division 260). Table of sections 250‑5 Some important concepts about tax‑related liabilities 250‑10 Summary of tax‑related liabilities 250‑5 Some important concepts about tax‑related liabilities (1) A tax‑related liability may arise for an entity before it becomes due and payable by that entity. Example: Under Part 2‑5, an entity's liability to pay a withheld amount may arise before the amount is due and payable. (2) For some tax‑related liabilities, an assessment needs to be made before the amount of the relevant liability becomes due and payable. Example: Under Division 1 of Part VI of the Income Tax Assessment Act 1936, an amount of income tax needs to be assessed before it becomes due and payable. (3) An amount of a tax‑related liability may become payable by an entity (for example, when the amount has been assessed) before it is due and payable by that entity. 250‑10 Summary of tax‑related liabilities (1) The following table is an index of each tax‑related liability under the Income Tax Assessment Act 1936. The key provision for the liability, as set out in the table, specifies when the liability becomes due and payable. Note: The Commissioner may vary the time at which the amount becomes due and payable. See Subdivision 255‑B. Tax‑related liabilities under the Income Tax Assessment Act 1936 Item Topic Provision 5 ultimate beneficiary non‑disclosure tax 102UO 10 withholding tax on dividend, interest or royalty 128C(1) 15 special tax payable on dealings by offshore banking units 128NB(3) 20 mining withholding tax 128W(1) 25 untainting tax 160ARDZ 30 franking deficit tax 160ARU(1) 35 franking deficit tax—part year assessment 160ARU(2) 40 deficit deferral tax 160ARUA 45 franking additional tax 160ARV 50 late lodgment penalty 163A(3) 55 income tax, including any liability taken to be income tax for the purposes of section 204 204 60 TFN withholding tax 221YHZW 65 estimate of unremitted amounts 222AGB(2) 70 amount payable under a payment agreement 222ALA 75 penalty under Subdivision B of Part 9 222AOE 80 penalty under Subdivision C of Part 9 222APE 85 penalty for failing to ensure that a company complies with a payment agreement 222AQA 90 family trust distribution tax 271‑75 in Schedule 2F (2) The following table is an index of each tax‑related liability under other Acts. The key provision for the liability, as set out in the table, specifies when the liability becomes due and payable. Note: The Commissioner may vary the time at which the amount becomes due and payable. See Subdivision 255‑B. Tax‑related liabilities under other legislation Item Topic Provision Act 5 net amount, including amounts in respect of luxury car tax and wine equalisation tax 33‑5 A New Tax System (Goods and Services Tax) Act 1999 10 amount of GST on importations 33‑15 A New Tax System (Goods and Services Tax) Act 1999 15 amount of luxury car tax on importation 13‑20 A New Tax System (Luxury Car Tax) Act 1999 20 amount of wine tax on customs dealings 23‑5 A New Tax System (Wine Equalisation Tax) Act 1999 25 fringe benefits tax 90(1) Fringe Benefits Tax Assessment Act 1986 30 additional tax under Part VIII 90(2) Fringe Benefits Tax Assessment Act 1986 35 fringe benefits tax instalments 103 Fringe Benefits Tax Assessment Act 1986 40 petroleum resource rent tax and additional tax 82 Petroleum Resource Rent Tax Assessment Act 1987 45 petroleum resource rent tax instalments 95 Petroleum Resource Rent Tax Assessment Act 1987 50 superannuation contributions surcharge 15(3) Superannuation Contributions Tax (Assessment and Collection) Act 1997 55 superannuation contributions surcharge 15(8) Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 60 superannuation guarantee charge 46 Superannuation Guarantee (Administration) Act 1992 65 additional superannuation guarantee charge 47 Superannuation Guarantee (Administration) Act 1992 70 general interest charge 8AAE Taxation Administration Act 1953 75 failure to notify penalty 8AAL Taxation Administration Act 1953 80 late reconciliation statement penalty 8AAR Taxation Administration Act 1953 85 RBA deficit debt 8AAZH(1) Taxation Administration Act 1953 90 administrative overpayment made by Commissioner 8AAZN Taxation Administration Act 1953 95 penalty under Division 4 of Part VI 47 Taxation Administration Act 1953 100 penalty for failure to withhold 16‑30(2) and 16‑40(2) in Schedule 1 Taxation Administration Act 1953 105 payment of withheld amount to Commissioner 16‑75 in Schedule 1 Taxation Administration Act 1953 110 additional withholding tax 16‑200(2) in Schedule 1 Taxation Administration Act 1953 115 quarterly PAYG instalment 45‑60 in Schedule 1 Taxation Administration Act 1953 120 annual PAYG instalment 45‑70 in Schedule 1 Taxation Administration Act 1953 125 general interest charge on shortfall in quarterly instalment worked out on basis of varied rate 45‑230(4) in Schedule 1 Taxation Administration Act 1953 130 general interest charge on shortfall in quarterly instalment worked out on basis of estimated benchmark tax 45‑232 in Schedule 1 Taxation Administration Act 1953 135 general interest charge on shortfall in annual instalment 45‑235(5) in Schedule 1 Taxation Administration Act 1953 140 civil penalty expressed in penalty units 298‑15 in Schedule 1 Taxation Administration Act 1953 145 termination payment surcharge 11(2) Termination Payments Tax (Assessment and Collection) Act 1997 150 tobacco charge 17(1) Tobacco Charges Assessment Act 1955 155 additional charge 17(1A) Tobacco Charges Assessment Act 1955 160 wool tax 36(1) Wool Tax (Administration) Act 1964 165 additional tax 36(2) Wool Tax (Administration) Act 1964 Subdivision 250‑B—Object of this Part 250‑25 Object The object of this Part is to ensure that unpaid amounts of *tax‑related liabilities and other related amounts are collected or recovered in a timely manner. [The next Division is Division 255.] Division 255—General rules about collection and recovery Table of Subdivisions 255‑A Tax‑related liabilities 255‑B Commissioner's power to vary payment time 255‑C Recovery proceedings Subdivision 255‑A—Tax‑related liabilities Table of sections 255‑1 Meaning of tax‑related liability 255‑5 Recovering a tax‑related liability that is due and payable 255‑1 Meaning of tax‑related liability A tax‑related liability is a pecuniary liability to the Commonwealth arising directly under a *taxation law (including a liability the amount of which is not yet due and payable). Note 1: See section 250‑10 for an index of tax‑related liabilities. Note 2: A taxation law, or a provision of it, may be excluded from being applied to this Part. See section 265‑65. 255‑5 Recovering a tax‑related liability that is due and payable (1) An amount of a *tax‑related liability that is due and payable: (a) is a debt due to the Commonwealth; and (b) is payable to the Commissioner. (2) The Commissioner, a Second Commissioner or a Deputy Commissioner may sue in his or her official name in a court of competent jurisdiction to recover an amount of a *tax‑related liability that remains unpaid after it has become due and payable. Note: The tables in section 250‑10 set out each provision that specifies when an amount of a tax‑related liability becomes due and payable. The Commissioner may vary that time under Subdivision 255‑B. Subdivision 255‑B—Commissioner's power to vary payment time Table of sections 255‑10 To defer the payment time 255‑15 To permit payments by instalments 255‑20 To bring forward the payment time in certain cases 255‑10 To defer the payment time (1) The Commissioner may, having regard to the circumstances of your particular case, defer the time at which an amount of a *tax‑related liability is, or would become, due and payable by you (whether or not the liability has already arisen). If the Commissioner does so, that time is varied accordingly. Note: General interest charge or any other relevant penalty, if applicable for any unpaid amount of the liability, will begin to accrue from the time as varied. See, for example, paragraph 204(3)(a) of the Income Tax Assessment Act 1936. (2) The Commissioner must do so by written notice given to you. 255‑15 To permit payments by instalments (1) The Commissioner may, having regard to the circumstances of your particular case, permit you to pay an amount of a *tax‑related liability by instalments under an *arrangement between you and the Commissioner (whether or not the liability has already arisen). (2) The *arrangement does not vary the time at which the amount is due and payable. Note: Despite an arrangement under this section, any general interest charge or other relevant penalty, if applicable for any unpaid amount of the liability, begins to accrue when the liability is due and payable under the relevant taxation law, or at that time as varied under section 255‑10 or 255‑20. 255‑20 To bring forward the payment time in certain cases (1) If the Commissioner reasonably believes that you may leave Australia before the time at which an amount of a *tax‑related liability becomes due and payable by you, the Commissioner may bring that time forward. If the Commissioner does so, that time is varied accordingly. Note: General interest charge or any other relevant penalty, if applicable for any unpaid amount of the liability, will begin to accrue from the time as varied. See, for example, paragraph 204(3)(a) of the Income Tax Assessment Act 1936. (2) The Commissioner must do so by written notice given to you. Subdivision 255‑C—Recovery proceedings Guide to Subdivision 255‑C 255‑35 What this Subdivision is about This Subdivision deals with procedural and evidentiary matters relating to proceedings to recover an amount of a tax‑related liability. Table of sections Operative provisions 255‑40 Service of documents if person absent from Australia or cannot be found 255‑45 Evidentiary certificate 255‑50 Certain statements or averments 255‑55 Evidence by affidavit [This is the end of the Guide.] Operative provisions 255‑40 Service of documents if person absent from Australia or cannot be found (1) This section applies if a document needs to be served on a person in respect of a proceeding to recover an amount of a *tax‑related liability, and the Commissioner, after making reasonable inquiries, is satisfied that: (a) the person is absent from Australia and does not have any agent in Australia on whom the document can be served; or (b) the person cannot be found. (2) The Commissioner may, without the court's leave, serve the document by posting it, or a sealed copy of it, in a letter addressed to the person at any Australian address of the person (including the person's Australian place of business or residence) that is last known to the Commissioner. 255‑45 Evidentiary certificate (1) A certificate: (a) stating one or more of the matters covered by subsection (2); and (b) signed by the Commissioner, a Second Commissioner or a Deputy Commissioner; is prima facie evidence of the matter or matters in a proceeding to recover an amount of a *tax‑related liability. (2) A certificate may state: (a) that a person named in the certificate has a *tax‑related liability; or (b) that an *assessment relating to a tax‑related liability has been made, or is taken to have been made, under a *taxation law; or (c) that notice of an assessment, or any other notice required to be served on a person in respect of an amount of a tax‑related liability, was, or is taken to have been, served on the person under a *taxation law; or (d) that the particulars of a notice covered by paragraph (c) are as stated in the certificate; or (e) that a sum specified in the certificate is, as at the date specified in the certificate, a debt due and payable by a person to the Commonwealth. 255‑50 Certain statements or averments (1) In a proceeding to recover an amount of a *tax‑related liability, a statement or averment about a matter in the plaintiff's complaint, claim or declaration is prima facie evidence of the matter. (2) This section applies even if the matter is a mixed question of law and fact. However, the statement or averment is prima facie evidence of the fact only. (3) This section applies even if evidence is given in support or rebuttal of the matter or of any other matter. (4) Any evidence given in support or rebuttal of the matter stated or averred must be considered on its merits. This section does not increase or diminish the credibility or probative value of the evidence. (5) This section does not lessen or affect any onus of proof otherwise falling on a defendant. 255‑55 Evidence by affidavit In a proceeding to recover an amount of a *tax‑related liability: (a) a person may give evidence by affidavit; and (b) the court may require the person to attend before it: (i) to be cross‑examined on that evidence; or (ii) to give other evidence relating to the proceedings. [The next Division is Division 260.] Division 260—Special rules about collection and recovery Table of Subdivisions Guide to Division 260 260‑A From third party 260‑B From liquidator 260‑C From receiver 260‑D From agent winding up business for non‑resident principal 260‑E From deceased person's estate Guide to Division 260 260‑1 What this Division is about This Division deals with the collection and recovery of an amount from a person who is not personally liable to pay that amount. Apart from Subdivision 260‑A, which covers a wider range of amounts, this Division primarily deals with amounts of tax‑related liabilities. Subdivision 260‑A—From third party Table of sections 260‑5 Commissioner may collect amounts from third party 260‑10 Notice to Commonwealth, State or Territory 260‑15 Indemnity 260‑20 Offence 260‑5 Commissioner may collect amounts from third party Amount recoverable under this Subdivision (1) This Subdivision applies if any of the following amounts (the debt) is payable to the Commonwealth by an entity (the debtor) (whether or not the debt has become due and payable): (a) an amount of a *tax‑related liability; (b) a judgment debt for a *tax‑related liability; (c) costs for such a judgment debt; (d) an amount that a court has ordered the debtor to pay to the Commissioner following the debtor's conviction for an offence against a *taxation law. Commissioner may give notice to an entity (2) The Commissioner may give a written notice to an entity (the third party) under this section if the third party owes or may later owe money to the debtor. Third party regarded as owing money in these circumstances (3) The third party is taken to owe money (the available money) to the debtor if the third party: (a) is an entity by whom the money is due or accruing to the debtor; or (b) holds the money for or on account of the debtor; or (c) holds the money on account of some other entity for payment to the debtor; or (d) has authority from some other entity to pay the money to the debtor. The third party is so taken to owe the money to the debtor even if: (e) the money is not due, or is not so held, or payable under the authority, unless a condition is fulfilled; and (f) the condition has not been fulfilled. How much is payable under the notice (4) A notice under this section must: (a) require the third party to pay to the Commissioner the lesser of, or a specified amount not exceeding the lesser of: (i) the debt; or (ii) the available money; or (b) if there will be amounts of the available money from time to time—require the third party to pay to the Commissioner a specified amount, or a specified percentage, of each amount of the available money, until the debt is satisfied. When amount must be paid (5) The notice must require the third party to pay an amount under paragraph (4)(a), or each amount under paragraph (4)(b): (a) immediately after; or (b) at or within a specified time after; the amount of the available money concerned becomes an amount owing to the debtor. Debtor must be notified (6) The Commissioner must send a copy of the notice to the debtor. Setting‑off amounts (7) If an entity other than the third party has paid an amount to the Commissioner that satisfies all or part of the debt: (a) the Commissioner must notify the third party of that fact; and (b) any amount that the third party is required to pay under the notice is reduced by the amount so paid. 260‑10 Notice to Commonwealth, State or Territory If the third party is the Commonwealth, a State or a Territory, the Commissioner may give the notice to a person who: (a) is employed by the Commonwealth, or by the State or Territory (as appropriate); and (b) has the duty of disbursing public money under a law of the Commonwealth, or of the State or Territory (as appropriate). 260‑15 Indemnity An amount that the third party pays to the Commissioner under this Subdivision is taken to have been authorised by: (a) the debtor; and (b) any other person who is entitled to all or a part of the amount; and the third party is indemnified for the payment. 260‑20 Offence (1) The third party must not fail to comply with the Commissioner's notice. Penalty: 20 penalty units Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. Note 2: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit. (2) The court may, in addition to imposing a penalty on a person convicted of an offence against subsection (1) in relation to failing to pay an amount under the notice, order the person to pay to the Commissioner an amount not exceeding that amount. Subdivision 260‑B—From liquidator Table of sections 260‑40 Subdivision does not apply to superannuation guarantee charge 260‑45 Liquidator's obligation 260‑50 Offence 260‑55 Joint liability of 2 or more liquidators 260‑60 Liquidator's other obligation or liability 260‑40 Subdivision does not apply to superannuation guarantee charge This Subdivision does not apply to a *tax‑related liability that is superannuation guarantee charge imposed by the Superannuation Guarantee Charge Act 1992. 260‑45 Liquidator's obligation (1) This Subdivision applies to a person who becomes a liquidator of a company. (2) Within 14 days after becoming liquidator, the liquidator must give written notice of that fact to the Commissioner. (3) The Commissioner must, as soon as practicable, notify the liquidator of the amount (the notified amount) that the Commissioner considers is enough to discharge any *outstanding tax‑related liabilities that the company has when the notice is given. (4) The liquidator must not, without the Commissioner's permission, part with any of the company's assets before receiving the Commissioner's notice. (5) However, subsection (4) does not prevent the liquidator from parting with the company's assets to pay debts of the company not covered by either of the following paragraphs: (a) the *outstanding tax‑related liabilities; (b) any debts of the company which: (i) are unsecured; and (ii) are not required, by an *Australian law, to be paid in priority to some or all of the other debts of the company. (6) After receiving the Commissioner's notice, the liquidator must set aside, out of the assets available for paying amounts covered by paragraph (5)(a) or (b) (the ordinary debts), assets with a value calculated using the following formula: where: amount of remaining ordinary debts means the sum of the company's ordinary debts other than the *outstanding tax‑related liabilities. (7) The liquidator must, in his or her capacity as liquidator, discharge the *outstanding tax‑related liabilities, to the extent of the value of the assets that the liquidator is required to set aside. (8) The liquidator is personally liable to discharge the liabilities, to the extent of that value, if the liquidator contravenes this section. 260‑50 Offence The liquidator must not fail to comply with subsection 260‑45(2), (4), (5), (6) or (7). Penalty: 10 penalty units. Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. Note 2: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit. 260‑55 Joint liability of 2 or more liquidators If there are 2 or more persons who become liquidators of the company, the obligations and liabilities under this Subdivision: (a) apply to all the liquidators; but (b) may be discharged by any of them. 260‑60 Liquidator's other obligation or liability This Subdivision does not reduce any obligation or liability of a liquidator arising elsewhere. Subdivision 260‑C—From receiver Table of sections 260‑75 Receiver's obligation 260‑80 Offence 260‑85 Joint liability of 2 or more receivers 260‑90 Receiver's other obligation or liability 260‑75 Receiver's obligation (1) This Subdivision applies to a person (the receiver) who, in the capacity of receiver, or of receiver and manager, takes possession of a company's assets for the company's debenture holders. (2) Within 14 days after taking possession of the assets, the receiver must give written notice of that fact to the Commissioner. (3) The Commissioner must, as soon as practicable, notify the receiver of the amount (the notified amount) that the Commissioner considers is enough to discharge any *outstanding tax‑related liabilities that the company has when the notice is given. (4) The receiver must not, without the Commissioner's permission, part with any of the company's assets before receiving the Commissioner's notice. (5) However, subsection (4) does not prevent the receiver from parting with the company's assets to pay debts of the company not covered by either of the following paragraphs: (a) the *outstanding tax‑related liabilities; (b) any debts of the company which: (i) are unsecured; and (ii) are not required, by an *Australian law, to be paid in priority to some or all of the other debts of the company. (6) After receiving the Commissioner's notice, the receiver must set aside, out of the assets available for paying amounts covered by paragraph (5)(a) or (b) (the ordinary debts), assets with a value calculated using the following formula: where: amount of remaining ordinary debts means the sum of the company's ordinary debts other than the *outstanding tax‑related liabilities. (7) The receiver must, in his or her capacity as receiver, or as receiver and manager, discharge the *outstanding tax‑related liabilities, to the extent of the value of the assets that the receiver is required to set aside. (8) The receiver is personally liable to discharge the liabilities, to the extent of that value, if the receiver contravenes this section. 260‑80 Offence The receiver must not fail to comply with subsection 260‑75(2), (4), (5), (6) or (7). Penalty: 10 penalty units. Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. Note 2: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit. 260‑85 Joint liability of 2 or more receivers If 2 or more persons (the receivers) take possession of a company's assets, for the company's debenture holders, in the capacity of receiver, or of receiver and manager, the obligations and liabilities under this Subdivision apply to: (a) all the receivers; but (b) may be discharged by any of them. 260‑90 Receiver's other obligation or liability This Subdivision does not reduce any obligation or liability of the receiver or receivers arising elsewhere. Subdivision 260‑D—From agent winding up business for non‑resident principal Table of sections 260‑105 Obligation of agent winding up business for non‑resident principal 260‑110 Offence 260‑115 Joint liability of 2 or more agents 260‑120 Agent's other obligation or liability 260‑105 Obligation of agent winding up business for non‑resident principal (1) This Subdivision applies to an agent whose principal: (a) is not an Australian resident; and (b) has instructed the agent to wind up so much of the principal's business as is carried on in Australia. (2) Within 14 days after receiving the instructions, the agent must give written notice of that fact to the Commissioner. (3) The Commissioner must, as soon as practicable after receiving the notice, notify the agent of the amount (the notified amount) that the Commissioner considers is enough to discharge any *outstanding tax‑related liabilities that the principal has when the notice is given. (4) Before receiving the Commissioner's notice, the agent must not, without the Commissioner's permission, part with any of the principal's assets that are available for discharging the *outstanding tax‑related liabilities. (5) After receiving the notice, the agent must set aside: (a) out of