Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_6:p62
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 62/63)
Character Range: 492630–495563

of paragraphs 12‑245(a) or (b) or of paragraphs 12‑280(a) or (b) (as the case requires) were satisfied.
 (4) The *custodian may recover from the recipient as a debt an amount that the custodian has paid to the Commissioner under subsection (1).
 (5) The *custodian is entitled to set off an amount that the custodian can recover from the recipient under subsection (4) against debts due by the custodian to the recipient.

Division 13—Alienated personal services payments

Table of sections
13‑1 Object of this Division
13‑5 Payment to the Commissioner in respect of alienated personal services payments
13‑10 Alienated personal services payments
13‑15 Personal services payment remitters
13‑20 Time for payments to Commissioner for alienated personal services payments made during 2000‑01

13‑1  Object of this Division
  The object of this Division is to ensure the efficient collection of income tax (and other liabilities) on any *personal services income included in an individual's assessable income under Division 86 of the Income Tax Assessment Act 1997 by:
 (a) putting *personal services entities receiving *alienated personal services payments in a position similar to their position if amounts were withheld from the payments under Division 12; but
 (b) doing so in a way that enables them to comply with their obligations without having to withhold amounts separately from each payment.
Note: Under Division 86 of the Income Tax Assessment Act 1997 (about alienation of personal services income), an individual's personal services income that is gained or produced by another entity is in some cases included in the individual's assessable income. Payments of this income by the entity might not be caught by Division 12.

13‑5  Payment to the Commissioner in respect of alienated personal services payments

Obligation to pay amounts
 (1) A *personal services entity must pay an amount of tax to the Commissioner if:
 (a) it receives an *alienated personal services payment that relates to an individual's personal services income; and
 (b) it receives the payment during a *PAYG payment period for which it is a *personal services payment remitter.

Working out the amounts
 (2) Use this method statement to work out the amount:

      Method statement
           Step 1. Identify the payments that the *personal services entity makes to the individual during the period mentioned in paragraph (1)(b) that are *withholding payments covered by section 12‑35.
           Step 2. Identify the amounts that:

                (a) are included in the individual's assessable income under section 86‑15 of the Income Tax Assessment Act 1997; and
                (b) relate to *alienated personal services payments the entity receives during that period.

           Step 3. Work out the sum of all the amounts that Division 12 would require the entity to withhold in respect of that period if both of these were taken into