Taxation Administration Act 1953

An entity that is an *AMIT or a *custodian must comply with subsection (2) if:

the entity makes a payment to another entity (the recipient) from which an amount would have been required to be withheld under Subdivision 12‑F if:

the entity were a company; and

the payment had been made to a foreign resident; and

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; and

an amount is not required to be withheld from the payment because:

the recipient is not a foreign resident; or

the recipient is a foreign resident carrying on business in Australia at or through a permanent establishment (within the meaning of subsection 128B(3F) of the Income Tax Assessment Act 1936) of the recipient in Australia, and the payment is attributable to the permanent establishment; and

the payment is any of the following:

a payment that arises because of the operation of section 12A‑205 (deemed payments);

a *pre‑AMMA actual payment in respect of a payment that so arises.

The entity must:

give to the recipient a written notice containing the details specified in subsection (3); or

make those details available on a website in a way that the details are readily accessible to the recipient for not less than 5 continuous years.

The notice must be given, or the details must be made available on a website, before or at the time when the payment is made and:

must specify the part of the payment from which an amount would have been so required to have been withheld; and

must specify the income year of the *AMIT to which that part relates.

Failure to give the notice or make the details available as required by this section incurs an administrative penalty: see section 12A‑20.

An entity that is not an *AMIT or a *custodian must comply with subsection (5) if:

the entity receives a payment; and

another entity (the subsequent recipient) is or becomes entitled:

to receive from the entity; or

to have the entity credit to the subsequent recipient, or otherwise deal with on the subsequent recipient’s behalf or as the subsequent recipient directs;

the entity would have been required to withhold an amount from the payment under subsection 12‑215(1), 12‑250(1) or 12‑285(1) if the subsequent recipient had been a foreign resident; and

an amount is not required to be withheld from the payment because:

the subsequent recipient is not a foreign resident; or

the subsequent recipient is a foreign resident carrying on business in Australia at or through a permanent establishment (within the meaning of subsection 128B(3F) of the Income Tax Assessment Act 1936) of the subsequent recipient in Australia, and the payment is attributable to the permanent establishment; and

the payment is any of the following:

a payment that arises because of the operation of section 12A‑205 (deemed payments);

a *pre‑AMMA actual payment in respect of a payment that so arises.

The entity must:

give to the subsequent recipient a written notice containing the details specified in subsection (6); or

make those details available on a website in a way that the details are readily accessible to the subsequent recipient for not less than 5 continuous years.

The notice must be given, or the details must be made available on a website, before or at the time when the amount is paid or credited to the subsequent recipient, or is dealt with on the subsequent recipient’s behalf or as the subsequent recipient directs, and:

must specify the part of the payment referred to in paragraph (4)(a) from which an amount would have been so required to have been withheld; and

must specify the income year of the *AMIT to which that part relates.

Failure to give the notice or make the details available as required by this section incurs an administrative penalty: see section 12A‑20.