Taxation Administration Act 1953

An entity (the intermediary) that receives a payment meeting the requirements set out in paragraphs 12‑315(1)(b) and (c) must withhold an amount from the payment if:

the intermediary is a person in Australia or an *Australian government agency; and

another entity (the likely foreign recipient) is or becomes entitled:

to receive the payment or part of it from the intermediary, or to receive the amount of the payment or of part of it from the intermediary; or

to have the intermediary credit to the likely foreign recipient, or otherwise deal with on the likely foreign recipient’s behalf or as the likely foreign recipient directs, the payment or part of it, or the amount of the payment or of part of it; and

the likely foreign recipient is covered by subsection (3); and

the likely foreign recipient is not covered by an exemption in force under subsection 12‑319(1).

The intermediary must withhold the amount:

if the likely foreign recipient is so entitled when the intermediary receives the payment—just after the intermediary receives the payment; or

if the likely foreign recipient becomes so entitled after the intermediary receives the payment—just after the likely foreign recipient becomes so entitled.

The likely foreign recipient is covered by this subsection if any of the following conditions is satisfied:

the likely foreign recipient is a foreign resident;

the intermediary believes, or has reasonable grounds to believe, that the likely foreign recipient is a foreign resident;

the intermediary has no reasonable grounds to believe that the likely foreign recipient is an Australian resident, and either:

the likely foreign recipient has an address outside Australia (according to any record that is in the intermediary’s possession, or is kept or maintained on the intermediary’s behalf); or

the intermediary is authorised to forward the payment to a place outside Australia (whether to the likely foreign recipient or to anyone else);

the likely foreign recipient has a connection outside Australia of a kind set out in the regulations.