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 .
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
