INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3A - Collection of tax in respect of certain payments for work  

Subdivision B - Operative provisions  

SECTION 221YHB   MAKING OF PAYEE DECLARATIONS  

221YHB(1)   Payee may give payee declaration form to eligible paying authority.  

Subject to subsection (2), a payee who becomes entitled to receive a prescribed payment from an eligible paying authority may, for the purposes of this section, at any time before the payment is made give a payee declaration form, completed and signed by the payee, to the eligible paying authority.

221YHB(2)   Form not to be given to householders or where reporting exemption number quoted.  

Subsection (1) does not apply if:

(a) the eligible paying authority is a householder in relation to the prescribed payment; or

(b) the payee has quoted a reporting exemption number to the eligible paying authority and the approval to quote it is in force when the declaration form would otherwise be given.

221YHB(3)   Meaning of ``payee declaration form''.  

A ``payee declaration form'' is a document, in a form approved by the Commissioner for the purposes of this subsection, that (in addition to anything else that it requires or permits):

(a) requires the payee completing the form:

(i) to state his or her tax file number; or

(ii) to state that an application by the payee for a tax file number is pending; or

(iii) to state that the payee has a tax file number but does not know what it is and has asked the Commissioner to inform the payee of the number; and

(b) permits the payee completing the form:

(i) to state a deduction variation certificate number and deduction variation certificate percentage; or

(ii) to state a deduction exemption certificate number.

221YHB(4)   Meaning of ``payee declaration''.  

If the payee gives the form to the eligible paying authority, the payee is said to make a ``payee declaration'' to the eligible paying authority.

221YHB(5)   When declaration in force.  

A payee declaration made to an eligible paying authority is in force at all times after it is made until any of the following happens:

(a) 1 year passes after the eligible paying authority makes a prescribed payment to the payee (being a payment made when the declaration is in force) without the payee again becoming entitled to receive a prescribed payment from the eligible paying authority;

(b) the payee makes another payee declaration to the eligible paying authority;

(c) the payee quotes a reporting exemption number to the eligible paying authority;

(d) the Commissioner, by notice in the Gazette , determines that:

(i) all payee declarations cease to be in force; or

(ii) a specified class of payee declarations that includes the particular payee declaration ceases to be in force;

(e) subsection (6) or (8) applies.

221YHB(6)   Tax file number not provided.  

Subject to subsection (7), a payee declaration ceases to be in force if:

(a) the payee declaration form concerned contained a statement of a kind mentioned in subparagraph (3)(a)(ii) or (iii) in relation to a tax file number; and

(b) 28 days have passed since the payee declaration was made without the payee having informed the eligible paying authority of his or her tax file number.

221YHB(7)   Section 202BD notice in force.  

If, within the 28 days, a notice in relation to the payee given to the eligible paying authority under section 202BD comes into force, the payee declaration does not cease to be in force until no notice in relation to the payee given to the eligible paying authority under section 202BD is in force.

221YHB(8)   Payee has no tax file number.  

A payee declaration ceases to be in force if:

(a) the Commissioner is satisfied that the tax file number stated in the payee declaration form has been cancelled since the form was given or is for any other reason not the payee's tax file number; and

(b) the Commissioner is not satisfied that the payee has a tax file number; and

(c) the Commissioner, by written notice given to the eligible paying authority and the payee, informs them accordingly and states that the declaration ceases to be in force on a specified day (which must not be earlier than the day on which the notice is given to the payee).

In such a case, the payee declaration ceases to be in force on the day specified in the notices.

221YHB(9)   Statement of reasons to payee.  

The Commissioner must, together with the notice to the payee, give the payee a written statement of the reasons for the decision to give the notice.

221YHB(10)   Payee's tax file number incorrectly stated.  

If:

(a) the Commissioner is satisfied that the tax file number stated in the payee declaration form has been cancelled since the form was given or is for any other reason wrong; and

(b) the Commissioner is satisfied that the payee has a tax file number;

the Commissioner may give the eligible paying authority written notice of the incorrect statement and of the payee's tax file number. If the Commissioner does so, the eligible paying authority must, in any form under this Division requiring the payee's tax file number that the eligible paying authority completes after that time (before another payee declaration is made by the payee to the eligible paying authority), state that tax file number.