Document ID: chunk:federal_register_of_legislation:C2008A00032:clause:1_1:p3
Version: federal_register_of_legislation:C2008A00032
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 3/5)
Character Range: 6452–9138

the day on which the Tax Laws Amendment (Election Commitments No. 1) Act 2008 receives the Royal Assent; or
 (ii) 15% for fund payments in relation to the following income year; or
 (iii) 7.5% for fund payments in relation to later income years; or
 (b) otherwise—30%.

Withholding by other entities

 (4) An entity that is not a *managed investment trust or a *custodian must withhold an amount from a payment it receives if:
 (a) the payment or part of it (the covered part) was covered by a notice or information under section 12‑395; and
 (b) a foreign resident (the recipient) is or becomes entitled:
 (i) to receive from the entity; or
 (ii) to have the entity credit to the recipient, or otherwise deal with on the recipient's behalf or as the recipient directs;
  an amount (the attributable amount) reasonably attributable to the covered part.

Note: If the recipient not a foreign resident, the entity is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see section 12‑395.

 (5) The amount the entity must withhold is:

 (6) The rate is:
 (a) if the recipient is a resident of an *information exchange country:
 (i) 22.5% for *fund payments in relation to the first income year starting on or after the first 1 July after the day on which the Tax Laws Amendment (Election Commitments No. 1) Act 2008 receives the Royal Assent; or
 (ii) 15% for fund payments in relation to the following income year; or
 (iii) 7.5% for fund payments in relation to later income years; or
 (b) otherwise—30%.

 (7) An entity is a resident of an *information exchange country if:
 (a) the entity is a resident of that country for the purposes of the taxation laws of that country; or
 (b) if there are no taxation laws of that country applicable to the entity or the entity's residency status cannot be determined under those laws:
 (i) for an individual—the individual is ordinarily resident in that country; or
 (ii) for another entity—the entity is incorporated or formed in that country and is carrying on a business in that country.

 (8) An amount required to be withheld under subsection (4) must be withheld:
 (a) if the recipient is so entitled when the entity receives the payment—immediately after receipt; or
 (b) if the recipient becomes so entitled at a later time—immediately after the later time.

Meaning of custodian

 (9) An entity is a custodian if the entity is *carrying on a *business that consists predominantly of providing a custodial or depository service (as defined by section 766E of the Corporations Act 2001) pursuant to an *Australian financial services licence.

Exceptions

 (10)