Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment
16-40 Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment
An *exempt Australian government agency that:
fails to withhold an amount as required by Division 12 from a *withholding payment covered by Subdivision 12‑F (about dividend, interest or royalty payment); or
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 equal to that amount.
An exempt Australian government agency may become liable under this section in respect of a payment it made or received that is taken to have been subject to withholding tax as a result of a Commissioner’s determination under subsection 177F(2A) of the Income Tax Assessment Act 1936 (see also subsection 177F(2F) of that Act).
Division 298 in this Schedule contains machinery provisions for administrative penalties.
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