Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_6:p21
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 21/63)
Character Range: 391541–394251

or recovered in Australia.
 (2) The amount to be withheld is:
 (a) the amount notified by the Commissioner under section 12‑330; or
 (b) the amount worked out under a certificate in force under section 12‑335 that covers the payment;
as appropriate.

Exception
 (3) Subsection (1) does not apply if:
 (a) the Commissioner has notified the entity under section 12‑330 that the entity does not need to withhold an amount from the payment; or
 (b) a certificate in force under section 12‑335 covers the payment and does not require the entity to withhold an amount from it.

12‑330  Payer must ask Commissioner how much to withhold
 (1) An entity must not intentionally make a payment from which section 12‑325 requires it to withhold an amount, unless:
 (a) the entity has notified the Commissioner in writing of the amount of the proposed payment; and
 (b) the Commissioner has later notified the entity in writing of the amount (if any) that the entity must withhold from the payment in respect of tax or *petroleum resource rent tax that is or may become payable by a foreign resident to whom the payment is made;
or the payment is covered by a certificate in force under section 12‑335.
Penalty: 20 penalty units.
Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

Failure to notify not an offence against section 8C
 (2) An entity that fails to notify the Commissioner as required by subsection (1) does not commit an offence against section 8C.

12‑335  Commissioner may exempt from section 12‑330, subject to conditions
 (1) The Commissioner may give an entity a written certificate exempting the entity from complying with section 12‑330 for specified payments.
 (2) A certificate is subject to:
 (a) a condition that the entity must withhold from a payment covered by the certificate the amount (if any) worked out in accordance with the certificate in respect of tax or *petroleum resource rent tax that is or may become payable by a foreign resident to whom the payment is made; and
 (b) such other conditions as the certificate specifies.
However, the entity does not contravene subsection 12‑330(1) because it contravenes a condition.
 (3) The Commissioner may, by written notice given to the entity:
 (a) revoke a certificate, whether or not a condition of it has been contravened; or
 (b) vary a certificate by revoking, changing or adding to its conditions.
Note: A person who is dissatisfied with a decision under this section may object against the decision in the manner set out in Part IVC.

Subdivision 12‑H—Distributions of withholding MIT income

Guide to Subdivision 12‑H

12‑375  What this Subdivision is about

      A withholding MIT may be required