Taxation Determination TD 2000/47







This Determination applies to years commencing both before and after its date of issue . However , this Determination does not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of the Determination ( see paragraphs 21 and 22 of Taxation Ruling TR 92 / 20 ). | 1. Yes. However the Commissioner has varied the amount of the withholding to nil in the circumstances outlined in paragraph 5 below. | 2. Often an entity (the payer) will make a payment to an individual; | The payer is required to withhold an amount from the payments in accordance with the provisions contained in subdivisions 12-B, 12-C or 12-D in Schedule 1 of the Taxation Administration Act 1953 (TAA) which cover payments in the following categories: | Payments for work and services - Subdivision 12-B | Retirement payments, eligible termination payments and annuities - Subdivision 12-C | Benefit and compensation payments - Subdivision 12-D | For details of the provisions relating to these payments see sections 12-35 to 12-120 of Schedule 1 of the TAA. | 3. Subsection 15-10(1) of Schedule 1 of the TAA provides that the amount that subdivision 12-B, 12-C or 12-D requires to be withheld from the payment is to be worked out under withholding schedules gazetted by the Commissioner as per section 15-25 of Schedule 1 of the TAA. However, if the regulations prescribe how the amount is to be worked out, then it is to be worked out under the regulations. Regulation 37 of the Taxation Administration Regulations 1976 currently provides that where the individual who receives the payment does not provide the paying entity with a TFN Declaration, the payer is required to withhold an amount equivalent to 48.5% of the payment. | 4. Section 15-15 of Schedule 1 of the TAA enables the Commissioner to vary the amount required to be withheld to meet the special circumstances of a particular case or class of cases. A copy of a variation that applies to a class of entities must be published in the Gazette. | 5. The Commissioner considers that where an entity makes a payment to an individual that falls within the provisions of Subdivision 12-B (except section 12-55 which covers a voluntary agreement to withhold), 12-C or 12-D in Schedule 1 of the TAA and: | then the amount required to be withheld from the payment should be varied to nil under the power contained in section 15-15 to meet the special circumstances of this class of cases. A copy of the notice of variation to this effect was published in the Commonwealth of Australia Special Gazette No S 343, 29 June 2000. The variation is effective from 1 July 2000 and applies to payments made on or after that date. | Commissioner of Taxation 25 October 2000 | Footnotes: Not previously released in draft form


Legislative references: TAA 1953 Schedule 1 TAA 1953 Subdiv 12-B TAA 1953 Subdiv 12-C TAA 1953 Subdiv 12-D TAA 1953 12-55 TAA 1953 15-10(1) TAA 1953 15-15 TAA 1953 15-25 TAR 1976 Reg 37
Subject references: Pay As You Go PAYG Variation PAYG Withholding TFN Declaration