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.
Acquisitions of taxable Australian property from foreign residents
14-205(1)
You must pay to the Commissioner an amount if:
(a) you are required under section 14-200 to pay an amount to the Commissioner in relation to your *acquisition of a *CGT asset; and
(b) under a *look-through earnout right relating to the CGT asset and the acquisition, you provide a *financial benefit to one or more entities; and
(c) subsection 14-210(1) (about foreign residents) would apply to at least one of those entities at the time you provide the financial benefit if section 14-210 were modified as described in subsection (2) of this section; and
(d) an amount is not already required to be withheld from a *withholding payment relating to the financial benefit.
Note 1:
To work out the amount payable, see subsection (4).
Note 2:
You must pay the amount on account of income tax possibly payable by the entities on their increased capital proceeds from receiving the financial benefit.
Modifications of the relevant foreign residents test
14-205(2)
The modifications of section 14-210 are as follows:
| Modifications to section 14-210 for the purposes of this section | ||
| Column 1 | Column 2 | |
| Item | For a reference in that section to: | substitute a reference to: |
| 1 | transaction is entered into | *financial benefit is provided |
| 2 | transaction (other than a reference covered by item 1) | *financial benefit |
| 3 | 14-200 | 14-205 |
When you must pay the amount
14-205(3)
You must pay the amount to the Commissioner on or before the day you provide the *financial benefit.
Note:
There are penalties for failing to pay the amount (see Division 16 ).
14-205(4)
The amount to be paid to the Commissioner is:
(a) unless paragraph (b) applies - an amount equal to 12.5% of the *market value of the *financial benefit; or
(b) the varied amount applying under section 14-235 .
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