A New Tax System (Tax Administration) Act 1999 (179 of 1999)

Schedule 14   PAYG withholding registration

Taxation Administration Act 1953

1   After Subdivision 16-B of Division 16 in Schedule 1

Insert:

Subdivision 16-BA - To be registered

Table of sections

Registration of withholders

16-140 Withholders must be registered

16-141 Registration and cancellation

Branch registration

16-142 Branches may be registered

16-143 Separate amounts for entities and branches

16-144 Cancellation of branch registration

16-145 Effect on branches of cancelling the entity's registration

Registration of withholders

16-140 Withholders must be registered

(1) An entity that must pay an amount to the Commissioner under:

(a) subsection 16-70(1) (about amounts withheld under Division 12); or

(b) Division 14 (about payments in respect of non-cash benefits);

must apply to register with the Commissioner.

(2) The entity must apply in the *approved form by the day on which the entity is first required:

(a) to withhold an amount under Division 12; or

(b) to pay an amount to the Commissioner under Division 14.

However, the Commissioner may allow a longer period for applying.

(3) An entity that contravenes this section is liable to a civil penalty of 5 penalty units.

Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

Note 2: Division 298 contains machinery provisions for civil penalties.

16-141 Registration and cancellation

The Commissioner may register an entity or cancel the registration of an entity at any time.

Branch registration

16-142 Branches may be registered

The Commissioner may register a branch of a registered entity if:

(a) the entity applies, in the *approved form, for registration of the branch; and

(b) the entity has an *ABN or has applied for one; and

(c) the Commissioner is satisfied that the branch maintains an independent system of accounting, and can be separately identified by reference to:

(i) the nature of the activities carried on through the branch; or

(ii) the location of the branch; and

(d) the Commissioner is satisfied that the entity is *carrying on an enterprise through the branch, or intends to carry on an enterprise through the branch, from a particular date specified in the application.

A branch that is so registered is a PAYG withholding branch .

Note: A branch may be both a PAYG withholding branch under this Subdivision and a GST branch under the GST Act.

16-143 Separate amounts for entities and branches

(1) If an entity has a *PAYG withholding branch, this Part applies to the entity as if the amounts that it must pay to the Commissioner under this Part were separated into the following classes:

(a) for each such branch of the entity, a class of amounts that relate to the branch; and

(b) a class of amounts that do not relate to any of the entity's branches.

Note: This section does not impose any legal obligations on the branches. The entity remains legally responsible under this Part for all amounts that relate to its branches.

(2) Those amounts are worked out as if the branch were a separate entity and as if:

(a) all payments made through the branch, from which amounts are required to be withheld under Division 12, were made by that separate entity; and

(b) all non-cash benefits provided through the branch, in respect of which Division 14 requires an amount to be paid to the Commissioner, were provided by that separate entity.

16-144 Cancellation of branch registration

The Commissioner must cancel the registration of a *PAYG withholding branch of an entity if the Commissioner is satisfied that the branch does not satisfy paragraph 16-142(c) or (d).

16-145 Effect on branches of cancelling the entity's registration

If an entity's registration is cancelled, the registration of any *PAYG withholding branches of the entity ceases to have effect.