Taxation Laws Amendment Act (No. 4) 2003 (66 of 2003)

Schedule 5   Foreign resident etc. withholding

Taxation Administration Act 1953

13   After section 16-40 in Schedule 1

Insert:

16-43 Failure to withhold: civil penalty for exempt Australian government agency in relation to payment to foreign resident etc.

(1) An *exempt Australian government agency that:

(a) fails to withhold an amount as required by Division 12 from a *withholding payment covered by Subdivision 12-FB (about payments to foreign residents); or

(b) fails to pay to the Commissioner an amount as required by Division 14 in respect of a withholding payment covered by that Subdivision;

is liable to pay to the Commissioner a penalty (the penalty amount ) equal to that amount.

(2) The penalty amount is due at the time when the *exempt Australian government agency would have had to pay to the Commissioner the *amount required to be withheld.

Note: Division 298 in this Schedule contains machinery provisions for civil penalties.