Taxation Administration Act 1953
View history note
Hide history noteNote: See section 3AA .
Chapter 4 - Generic assessment, collection and recovery rulesAn *Australian corporate tax entity is liable to an administrative penalty if:
(a) the entity makes a *frankable distribution that has an *unfranked part; and
(b) the entity declares an amount of the unfranked part to be *conduit foreign income; and
(c) the sum of the amounts declared exceeds the amount of the entity ' s conduit foreign income at:
(i) if the entity declares the distribution before making the distribution - the time of the declaration; or
(ii) otherwise - the time the distribution is made.
288-80(2)
The amount of the penalty is the sum of the amounts worked out under subsections (3) and (4).
288-80(3)
The amount is:
| *Corporate
tax rate |
× | Excess mentioned
in paragraph (1)(c) |
× | Australian membership
interests Total membership interests |
where:
Australian membership interests
means the number of *membership interests or *non-share equity interests in the entity that are not covered by the definition of
foreign membership interests
in subsection (4).
total membership interests
means the number of *membership interests or *non-share equity interests in the entity held by entities that are entitled to receive the *distribution.
288-80(4)
The amount is:
| Applicable
withholding tax rate |
× | Excess referred to
in paragraph (1)(c) |
× |
Foreign membership
interests Total membership interests |
where:
applicable withholding tax rate
means 50% of the rate of tax set out in paragraph
7(a)
of the
Income Tax (Dividends, Interest and Royalties Withholding Tax) Act 1974
.
foreign membership interests
means the number of *membership interests or *non-share equity interests in the entity held by entities that are entitled to receive the *distribution and in relation to whom the entity is required to withhold amounts under section
12-210
disregarding the operation of section
12-300
(about limits on the amount withheld).
total membership interests
means the number of *membership interests or *non-share equity interests in the entity held by entities that are entitled to receive the *distribution.
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