Document ID: chunk:federal_register_of_legislation:C2008A00032:clause:1_1:p4
Version: federal_register_of_legislation:C2008A00032
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 4/5)
Character Range: 8874–11522

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) This section does not apply:
 (a) to a company unless the company would, apart from section 12‑420, be acting in the capacity as *agent for the recipient; or
 (b) to an amount paid or received by an entity to the extent that no *managed investment trust withholding tax is payable in respect of the amount or an amount reasonably attributable to the amount.

12‑395  Requirement to give notice or make information available

Managed investment trusts and custodians

 (1) An entity that is a *managed investment trust or a *custodian must comply with subsection (2) if:
 (a) the entity makes a payment to another entity (the recipient) from which an amount would have been required to be withheld under section 12‑385 or subsection 12‑390(1) if the payment had been made to an entity covered by section 12‑410; and
 (b) an amount is not required to be withheld from the payment because the recipient is not an entity covered by section 12‑410.

Note: An entity may be covered by section 12‑410 if the entity has an address outside Australia or payment is authorised to be made to a place outside Australia.

 (2) The entity must:
 (a) give to the recipient a written notice containing the details specified in subsection (3); or
 (b) make those details available on a website in a way that the details are readily accessible to the recipient for not less than 5 continuous years.

 (3) The notice must be given, or the details must be made available on a website, before or at the time when the payment is made and:
 (a) must specify the part of the payment from which an amount would have been so required to have been withheld; and
 (b) must specify the income year of the *managed investment trust to which that part relates.

Note: Failure to give the notice or make the details available as required by this section incurs an administrative penalty: see section 12‑415.

Other entities

 (4) An entity that is not a *managed investment trust or a *custodian must comply with subsection (5) if:
 (a) the entity receives a payment; and
 (b) another entity (also 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 attributable to the payment; and
 (c) the entity would have been required to withhold an amount from