Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_6:p15
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 15/63)
Character Range: 376473–379107

receive the interest or part of it from the entity, or to receive the amount of the interest or of part of it from the entity; or
 (ii) to have the entity credit to the foreign resident, or otherwise deal with on the foreign resident's behalf or as the foreign resident directs, the interest or part of it, or the amount of the interest or of part of it.
For limits on the amount to be withheld, see section 12‑300.
 (2) The entity must withhold the amount:
 (a) if the foreign resident is so entitled when the entity receives the payment—immediately after the entity receives the payment; or
 (b) if the foreign resident becomes so entitled after the entity receives the payment—immediately after the foreign resident becomes so entitled.

12‑255  Interest payment derived by lender in carrying on business through overseas permanent establishment
  An entity must withhold an amount from interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936) it pays if it has been notified under section 12‑260 of this Act that this section applies to the interest.
Note: For limits on the amount to be withheld, see section 12‑300.

12‑260  Lender to notify borrower if interest derived through overseas permanent establishment
 (1) If:
 (a) interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936) is payable to:
 (i) an entity that is, or entities at least one of whom is, an Australian resident; or
 (ii) an *Australian government agency; and
 (b) the entity liable to pay the interest is authorised to pay it at a place in Australia (whether to any of those entities or the agency, or to anyone else); and
 (c) the interest is or will be *derived by any of those entities or the agency in carrying on business in a country outside Australia at or through a *permanent establishment it has in that country;
those entities, or the agency, must notify the entity liable to pay the interest that section 12‑255 applies to the interest.
 (2) The notice must be given in writing, before the entities, or the agency, enter into the transaction in relation to which the interest is payable, or within one month afterwards.
 (3) Immediately after giving the notice, those entities, or the agency, must notify the Commissioner of:
 (a) the particulars of the transaction (including the dates on which interest is payable under it); and
 (b) the day when the notice was given to the entity liable to pay the interest.
Failure to comply with this section may contravene section 8C of this Act.

Royalties

12‑280  Royalty payment to overseas person
  An entity must withhold