Document ID: chunk:federal_register_of_legislation:C2010C00576:clause:5_6:p2
Version: federal_register_of_legislation:C2010C00576
Segment Type: clause
Provision Reference: sch 5 cl 6 (pt 2/3)
Character Range: 89098–91949

be related to assessable income of foreign residents.

12‑317  Payment received for foreign resident etc.

 (1) An entity (the intermediary) that receives a payment meeting the requirements set out in paragraphs 12‑315(1)(b) and (c) must withhold an amount from the payment if:
 (a) the intermediary is a person in Australia or an *Australian government agency; and
 (b) another entity (the likely foreign recipient) is or becomes entitled:
 (i) to receive the payment or part of it from the intermediary, or to receive the amount of the payment or of part of it from the intermediary; or
 (ii) to have the intermediary credit to the likely foreign recipient, or otherwise deal with on the likely foreign recipient's behalf or as the likely foreign recipient directs, the payment or part of it, or the amount of the payment or of part of it; and
 (c) the likely foreign recipient is covered by subsection (3); and
 (d) the likely foreign recipient is not covered by an exemption in force under subsection 12‑319(1).

 (2) The intermediary must withhold the amount:
 (a) if the likely foreign recipient is so entitled when the intermediary receives the payment—just after the intermediary receives the payment; or
 (b) if the likely foreign recipient becomes so entitled after the intermediary receives the payment—just after the likely foreign recipient becomes so entitled.

 (3) The likely foreign recipient is covered by this subsection if any of the following conditions is satisfied:
 (a) the likely foreign recipient is a foreign resident;
 (b) the intermediary believes, or has reasonable grounds to believe, that the likely foreign recipient is a foreign resident;
 (c) the intermediary has no reasonable grounds to believe that the likely foreign recipient is an Australian resident, and either:
 (i) the likely foreign recipient has an address outside Australia (according to any record that is in the intermediary's possession, or is kept or maintained on the intermediary's behalf); or
 (ii) the intermediary is authorised to forward the payment to a place outside Australia (whether to the likely foreign recipient or to anyone else);
 (d) the likely foreign recipient has a connection outside Australia of a kind set out in the regulations.

12‑319  Exemptions from withholding obligations under this Subdivision

 (1) The Commissioner may grant an entity an exemption in writing for the purposes of paragraphs 12‑315(1)(d) and 12‑317(1)(d) if the Commissioner is satisfied that:
 (a) the entity has an established history of compliance with its obligations under *taxation laws; and
 (b) the entity is likely to continue to comply with those obligations in the future.

 (2) The exemption is in force during the period:
 (a) beginning when the Commissioner grants the exemption; and
 (b) ending at the time specified in the exemption.