Pay as you go (PAYG) withholding applies to several payments, including:
payments for a supply where no ABN is quoted and no exemptions for quoting applied to the supplier
payments arising from investments where no TFN or ABN is quoted
certain payments to foreign residents prescribed in the Regulations.
If the payer withheld an amount from a payment to the partnership because the partnership did not quote an ABN, the payer should have sent a PAYG payment summary – withholding where ABN not quoted form (NAT 3283) to the partnership.
If the payer withheld an amount from a payment to the partnership because of the operation of foreign resident withholding, the payer should have sent a PAYG withholding payment summary – foreign residents to the partnership.
A payer may issue a receipt, remittance advice or similar document in place of the PAYG payment summary – withholding where ABN not quoted form or PAYG withholding from foreign residents – payment summary. If the partnership did not receive or has lost its copy of a payment summary, contact the payer responsible and request a signed photocopy of the payer’s copy.
Complete a Non-individual PAYG payment summary schedule 2014 if you show amounts at:
- C or D item 5
- B item 5
- T item 6
- U item 6.
Income subject to foreign resident withholding that has been included in a distribution received from other partnerships and trusts must be shown at item 8. A Non-individual PAYG payment summary schedule 2014 is not required for these distributions because they do not have an associated payment summary.
Print the partnership’s TFN and name in the appropriate boxes at the top of the schedule.
From each PAYG payment summary – withholding where ABN not quoted form or PAYG withholding payment summary – foreign residents, record on the schedule:
- payer’s ABN (or withholding payer number)
- total tax withheld
- gross payment
- payer’s name.
When you have entered details of all these payment summaries on the schedule, attach the schedule to the partnership tax return.
Do not attach copies of any payment summary to the tax return; keep them with the partnership’s copy of the tax return and keep a copy of the schedule with the partnership’s tax records.
Where the partnership is a member of a consolidated group or MEC group for the whole income year and amounts have been withheld from payments or distributions, the responsibility for preparing the schedule will rest on the head company of the group.
Where a return is required because the partnership had a period in the income year when it was not a member of a consolidated group or MEC group (a non-membership period), the partnership should complete a Non-individual PAYG payment summary schedule 2014 where amounts have been withheld from payments or distributions to the partnership during the non-membership period.