Document ID: chunk:federal_register_of_legislation:C2010C00715:clause:1_1:p15
Version: federal_register_of_legislation:C2010C00715
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 15/21)
Character Range: 44668–47425

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 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.

[The next Division is Division 14.]

Division 14—Non‑cash benefits for which amounts must be paid to the Commissioner

Table of sections

14‑1 Object of this Division
14‑5 Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding
14‑10 Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit
14‑15 Payer can recover amount paid to the Commissioner

14‑1  Object of this Division

  The object of this Division is:
 (a) to put entities that provide *non‑cash benefits, and entities that receive them, in a position similar to their position under Division 12 if payments of money had been made instead of the non‑cash benefits being provided; and
 (b) in that way, to prevent entities from avoiding their obligations under Division 12 by providing non‑cash benefits.

14‑5  Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding

 (1) An entity (the payer) must pay an amount to the Commissioner before providing a *non‑cash benefit to another entity (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