Taxation Administration Act 1953
View history note
Hide history noteNote: See section 3AA .
Chapter 2 - Collection, recovery and administration of income taxNote: A Commissioner ' s Remedial Power (CRP 2017/1) is relevant to this part of the tax law. Taxation Administration (Remedial Power - Foreign Resident Capital Gains Withholding) Determination 2017 (F2017L00992) modifies the operation of s 18-15 , 18-20 and 18-25 in Sch 1 to the Taxation Administration Act 1953 as follows:
To the extent that an entity ' s entitlement to a credit referred to in s 18-15 , 18-20 or 18-25 in Sch 1 to TAA is in respect of an amount paid to the Commissioner under Subdiv 14-D of Sch 1 to TAA, treat the entitlement as arising in the income year in which the transaction causing that application of Subdiv 14-D is recognised for income tax purposes for the entity. The modification applies in respect of transactions entered into on or after 1 July 2016.
An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to TAA to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
Is the entity a foreign resident at the time of the transaction ?
14-210(1)
This subsection applies to an entity at the time a transaction is entered into if, at that time: (a) you know that the entity is a foreign resident; or (b) you reasonably believe that the entity is a foreign resident; or (c) you do not reasonably believe that the entity is an Australian resident, and either:
(i) the entity has an address outside Australia (according to any record that is in your possession, or is kept or maintained on your behalf, about the transaction); or
(d) the entity has a connection outside Australia of a kind specified in the regulations; or (e) the * CGT asset to which the transaction relates is:
(ii) you are authorised to provide a related financial benefit to a place outside Australia (whether to the entity or to anyone else); or
(i) * taxable Australian real property; or
(ii) an * indirect Australian real property interest, the holding of which causes a company title interest (within the meaning of Part X of the Income Tax Assessment Act 1936 ) to arise.
Note:
This subsection is relevant to whether you must pay an amount to the Commissioner under section 14-200 .
[ CCH Note: S 14-210(1) will be amended by No 86 of 2026, s 3 and Sch 2 item 22, by substituting " under paragraph (6)(a) " for " in the regulations " in para (d), effective 1 October 2026. For application provisions, see note under s 14-226 .]
Exception - the entity gives you a clearance certificate
14-210(2)
Despite subsection (1) , that subsection does not apply to the entity in relation to the transaction if: (a) before you pay the Commissioner under section 14-200 in relation to the * CGT asset to which the transaction relates, the entity gives you a certificate about the entity that:
(i) was issued under subsection 14-220(1) ; and
(b) the CGT asset is of a kind described in paragraph (1)(e) of this section.
(ii) is for a period covering the time the transaction is entered into; and
Exception - the entity gives you a residency or interests declaration
14-210(3)
Despite subsection (1) , that subsection does not apply to the entity in relation to the transaction if: (a) before you pay the Commissioner under section 14-200 in relation to the * CGT asset to which the transaction relates, the entity gives you a declaration that:
(i) is about the entity or the CGT asset; and
(ii) was given under subsection 14-225(1) or (2) ; and
(b) when you are given the declaration, you do not know the declaration to be false; and (c) for a declaration given under subsection 14-225(1) - the CGT asset is not of a kind described in paragraph (1)(e) of this section.
(iii) is for a period covering the time the transaction is entered into; and
[ CCH Note: S 14-210(3) will be amended by No 86 of 2026, s 3 and Sch 2 items 23 and 24, by substituting para (b) and inserting para (d), effective 1 October 2026. For application provisions, see note under s 14-226 . Para (b) and (d) will read:
]
(b) at no time during the period starting when you are given the declaration, and ending immediately before you become the owner of the CGT asset, do you know, or could you reasonably be expected to know, the declaration to be false; and
; and (d) for a declaration given under subsection 14-225(2) :
(i) the requirements in subsection (4) of this section are satisfied in relation to the declaration; or
(ii) the total of the amounts that would be determined in accordance with subparagraphs 14-200(3)(a)(i) and (ii) in relation to the transaction and any related transactions that have been or are being undertaken (assuming those subparagraphs applied) is less than $ 50 million; or
(iii) the transaction is of a kind specified under paragraph (6)(b) , or circumstances specified under that paragraph apply to the transaction.
[ CCH Note: S 14-210(4) to (6) will be inserted by No 86 of 2026, s 3 and Sch 2 item 25, effective 1 October 2026. For application provisions, see note under s 14-226 . S 14-210(4) to (6) will read:
]
14-210(4)
For the purposes of subparagraph (3)(d)(i) , the requirements are that:
(a) the entity gave the Commissioner a notice under subsection 14-226(1) in relation to the declaration:
(i) if the period mentioned in subsection (5) of this section is more than 31 days - at least 28 days before the end of the period; or
(ii) if the period mentioned in that subsection is not more than 31 days - before, or as soon as reasonably practicable after, the start of the period but before the end of the period; and
(b) the entity gave you a declaration under subsection 14-225(2A) in relation to the notice before you became the owner of the * CGT asset.
14-210(5)
For the purposes of paragraph (4)(a) , the period:
(a) starts when the transaction is entered into; and
(b) ends immediately before you became the owner of the * CGT asset.
14-210(6)
The Minister may, by legislative instrument, make a determination:
(a) for the purposes of paragraph (1)(d) , specifying a kind of connection outside Australia for an entity; or
(b) for the purposes of subparagraph (3)(d)(iii) , specifying a kind of transaction, or specifying circumstances applicable to the transaction.
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