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 12 - Payments from which amounts must be withheld  

Subdivision 12-FB - Payments to foreign residents etc.  

SECTION 12-317   PAYMENT RECEIVED FOR FOREIGN RESIDENT ETC.  

12-317(1)    
An entity (the intermediary ) that receives a payment meeting the requirements set out in paragraphs 12-315(1)(b) and (c) must withhold an amount from the payment if:

(a) the intermediary is a person in Australia or an * Australian government agency; and

(b) another entity (the likely foreign recipient ) is or becomes entitled:

(i) to receive the payment or part of it from the intermediary, or to receive the amount of the payment or of part of it from the intermediary; or

(ii) to have the intermediary credit to the likely foreign recipient, or otherwise deal with on the likely foreign recipient ' s behalf or as the likely foreign recipient directs, the payment or part of it, or the amount of the payment or of part of it; and

(c) the likely foreign recipient is covered by subsection (3); and

(d) the likely foreign recipient is not covered by an exemption in force under subsection 12-319(1) .

12-317(2)    
The intermediary must withhold the amount:

(a) if the likely foreign recipient is so entitled when the intermediary receives the payment - just after the intermediary receives the payment; or

(b) if the likely foreign recipient becomes so entitled after the intermediary receives the payment - just after the likely foreign recipient becomes so entitled.

12-317(3)    
The likely foreign recipient is covered by this subsection if any of the following conditions is satisfied:

(a) the likely foreign recipient is a foreign resident;

(b) the intermediary believes, or has reasonable grounds to believe, that the likely foreign recipient is a foreign resident;

(c) the intermediary has no reasonable grounds to believe that the likely foreign recipient is an Australian resident, and either:

(i) the likely foreign recipient has an address outside Australia (according to any record that is in the intermediary ' s possession, or is kept or maintained on the intermediary ' s behalf); or

(ii) the intermediary is authorised to forward the payment to a place outside Australia (whether to the likely foreign recipient or to anyone else);

(d) the likely foreign recipient has a connection outside Australia of a kind set out in the regulations.