Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12A - Distributions by AMITs (including deemed payments)  

Subdivision 12A-C - Deemed payments by AMITs etc.  

Operative provisions

SECTION 12A-215   AMIT PAYMENT TO THE COMMISSIONER IN RESPECT OF DEEMED PAYMENTS TO OFFSHORE ENTITIES ETC.  

12A-215(1)    
A trustee of a trust that is an *AMIT for an income year must pay an amount to the Commissioner if:

(a) (Repealed by No 15 of 2019)

(b) the trustee makes a payment (the deemed payment ) that arises because of the operation of section 12A-205 ; and

(c) the payment is made to an entity (the recipient ) that is:

(i) if the payment is a *fund payment and the trust is a *withholding MIT in relation to the income year - an entity covered by section 12-410 ; or

(ii) if the payment is an *AMIT DIR payment made in relation to the income year - an entity that is not an Australian resident.

Note 1:

An entity may be covered by section 12-410 if the entity has an address outside Australia or payment is authorised to be made to a place outside Australia.

Note 2:

If the payment is made to a recipient not covered by subparagraph (c)(i) or (ii), the trustee is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see sections 12-395 and 12A-15 .

12A-215(2)    
The amount that the trustee must pay is equal to the amount that the trustee would, if the assumptions in subsection (3) were made, have had to withhold under:

(a) if the deemed payment is a *fund payment - section 12-385 ; or

(b) if the deemed payment is an *AMIT DIR payment - section 12-210 , 12-245 or 12-280 .

12A-215(3)    
The assumptions are that:

(a) the deemed payment had not arisen because of the operation of section 12A-205 ; and

(b) the deemed payment had instead been an actual payment; and

(c) if the deemed payment is an *AMIT DIR payment:

(i) where it corresponds to the character of a dividend (as defined in Division 11A of Part III of the Income Tax Assessment Act 1936 ) that is subject to a requirement to withhold under Subdivision 12-F - the trust had been a company, and it had paid it as a dividend; or

(ii) where it corresponds to the character of interest (as defined in Division 11A of Part III of the Income Tax Assessment Act 1936 ) that is subject to a requirement to withhold under Subdivision 12-F - it were the payment of interest; or

(iii) where it corresponds to the character of a *royalty that is subject to a requirement to withhold under Subdivision 12-F - it were the payment of a royalty; and

(d) if the deemed payment is an AMIT DIR payment - the condition in either or both of paragraphs 12-210(a) or (b), of paragraphs 12-245(a) or (b) or of paragraphs 12-280(a) or (b) (as the case requires) were satisfied.

12A-215(4)    
The trustee may recover from the recipient as a debt an amount that the trustee has paid to the Commissioner under subsection (1).

12A-215(5)    
The trustee is entitled to set off an amount that the trustee can recover from the recipient under subsection (4) against debts due by the trustee to the recipient.