INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3A - Collection of tax in respect of certain payments for work  

Subdivision B - Operative provisions  

SECTION 221YHDC   ELIGIBLE PAYING AUTHORITY (NON-HOUSEHOLDER) REPORTING ETC. OBLIGATIONS  

221YHDC(1)   Meaning of ``reportable payment''.  

For the purposes of this section, a prescribed payment made by an eligible paying authority to a payee is a ``reportable payment'' if:

(a) the eligible paying authority is not a householder in relation to the prescribed payment; and

(b) the payee has not quoted a reporting exemption number to the eligible paying authority before the payment is made, or has done so but the eligible paying authority reasonably believes the approval to quote it is not in force when the payment is made.

221YHDC(2)    

221YHDC(3)    

221YHDC(4)    

221YHDC(5)   End of year obligations for non-owner-builders.  

If an eligible paying authority that makes one or more reportable payments during a financial year to a payee is not an owner-builder in relation to some or all of the payments, the eligible paying authority must:

(a) no later than the first 14 July after the end of the financial year;

(i) complete and sign a payment summary form in respect of the payments in relation to which the eligible paying authority is not an owner-builder; and

(ii) make 2 copies of the form; and

(iii) make reasonable efforts to give the form to the payee; and

(b) no later than the first 14 August after the end of the financial year:

(i) complete and sign a reconciliation statement form in respect of the payments; and

(ii) make a copy of the form; and

(iii) send the form, together with one of the copies of the payment summary form, to the Commissioner.

221YHDC(6)   End of year obligations for owner-builders.  

If:

(a) an eligible paying authority is an owner-builder in relation to reportable payments made to a payee under a contract or contracts in relation to the whole or part of a construction project; and

(b) at the end of a financial year, the eligible paying authority has not yet completed the project or the part;

then the eligible paying authority must:

(c) no later than the first 14 July after the end of the financial year;

(i) complete and sign a payment summary form in respect of those reportable payments that were made to the payee during the financial year; and

(ii) make 2 copies of the form; and

(iii) make reasonable efforts to give the form to the payee; and

(d) no later than the first 14 August after the end of the financial year:

(i) complete and sign a reconciliation statement form in respect of the payments; and

(ii) make a copy of the form; and

(iii) send the form, together with one of the copies of the payment summary form, to the Commissioner.

221YHDC(7)   End of project obligations for owner-builders.  

If:

(a) an eligible paying authority is an owner-builder in relation to reportable payments made to a payee under a contract or contracts in relation to the whole or part of a construction project; and

(b) the eligible paying authority completes the project or part;

then the eligible paying authority must comply with subsection (8).

221YHDC(8)   Nature of obligations.  

The eligible paying authority must, within 6 weeks after completing the project or the part of the project:

(a) complete and sign a payment summary form in respect of those reportable payments that were made to the payee during the financial year in which the project or the part was completed; and

(b) make 2 copies of the form; and

(c) make reasonable efforts to give the form to the payee; and

(d) complete and sign a reconciliation statement form in respect of the payments; and

(e) make a copy of the form; and

(f) send the form, together with one of the copies of the payment summary form, to the Commissioner.

221YHDC(9)   Retention of records.  

An eligible paying authority must keep the copies of all of the forms that the eligible paying authority is required to make under this section (other than those copies required to be sent to the Commissioner) for at least 5 years after the end of the financial year in which the reportable payments to which the copies relate were made.

221YHDC(9A)   Late reconciliation statement penalty.  

An eligible paying authority that fails to give the Commissioner a reconciliation statement form under subparagraph (5)(b)(iii) or (6)(d)(iii), on or before the day on which it must be given to the Commissioner, is liable to pay the late reconciliation statement penalty.

Note 1:

The late reconciliation statement penalty is worked out under Division 3 of Part IIA of the Taxation Administration Act 1953 .

Note 2:

Subsection (10) provides an alternative liability for failing to give the form to the Commissioner.

221YHDC(10)   Offence.  

An eligible paying authority, other than a government body, that contravenes subsection (5), (6), (8) or (9) (including any of those subsections as varied by subsection (11)) is guilty of an offence punishable on conviction by a maximum fine of $2,000.

221YHDC(11)   Extension of time limits.  

The Commissioner may, in such cases and to the extent the Commissioner thinks fit, by written notice given to an eligible paying authority, extend any time set out in subsection (5), (6) or (8) for compliance with the requirements of that subsection.

221YHDC(12)   Variation of reporting etc. requirements where deduction exemption certificate.  

If:

(a) the payee in respect of the reportable payments to which subsection (5), (6) or (8) applies has made a payee declaration to an eligible paying authority that is in force when the payments are made; and

(b) a deduction exemption certificate number is stated in the payee declaration form; and

(c) the certificate is in force when the payments are made;

the Commissioner may, in such cases and to the extent the Commissioner thinks fit, by written notice given to the eligible paying authority, vary the requirements of that subsection in their application in relation to the eligible paying authority.