Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_4:p3
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 3/9)
Character Range: 503076–505638

(the recipient) if Division 12 would require the payer to withhold an amount (the notionally withheld amount) if, instead of providing the benefit to the recipient, the payer made a payment to the recipient in money equal to the *market value of the benefit when the benefit is provided.
 (2) The amount to be paid to the Commissioner is equal to the notionally withheld amount.
Example: Nick is a building contractor who has entered into a voluntary agreement with Mike for the purposes of section 12‑55. Nick proposes to give Mike his old utility van (whose market value is $1,000) as payment for work Mike has done for him over a fortnight.
 If Nick were instead to pay Mike $1,000, Nick would have had to withhold $203 under Division 12 (in accordance with withholding rates current at the time).
 This section requires Nick to pay $203 to the Commissioner before giving the van to Mike.
 (3) This section does not apply to providing:
 (a) a *fringe benefit; or
 (b) a benefit that is an exempt benefit under the Fringe Benefits Tax Assessment Act 1986; or
 (c) a benefit that would be an exempt benefit under that Act if paragraphs (d) and (e) of the definition of employer in subsection 136(1) of that Act were omitted; or
 (d) a benefit constituted by the acquisition of an *ESS interest *under an employee share scheme to which Subdivision 83A‑B or 83A‑C of the Income Tax Assessment Act 1997 applies.

14‑10  Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit
  If:
 (a) an entity (the payer) receives in the form of a *non‑cash benefit:
 (i) a *dividend of a company; or
 (ii) interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936); or
 (iii) a *royalty; and
 (b) section 12‑215, 12‑250 or 12‑285 would have required the payer to withhold an amount if the dividend, interest or royalty had been a payment in money;
the payer must pay that amount to the Commissioner before providing the benefit (or part of it) to another entity.

14‑15  Payer can recover amount paid to the Commissioner
 (1) The payer may recover from the recipient as a debt an amount that the payer has paid to the Commissioner under section 14‑5.
 (2) If the payer has paid an amount to the Commissioner under section 14‑10, the payer may:
 (a) if the payer has provided all of the benefit to another entity—recover the amount from that other entity as a debt; or
 (b) if the payer has provided a part of the benefit to another entity—recover from that other entity as a debt the corresponding