Document ID: chunk:federal_register_of_legislation:C2010C00715:clause:1_1:p18
Version: federal_register_of_legislation:C2010C00715
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 18/21)
Character Range: 52105–54668

Variation of amounts required to be withheld

 (1) The Commissioner may, for the purposes of meeting the special circumstances of a particular case or class of cases, vary the *amount required to be withheld by an entity from a *withholding payment (except a withholding payment covered by section 12‑140 or 12‑145). If the Commissioner does so, the amount is varied accordingly.

Note: Section 12‑140 is about a payment arising from an investment where the recipient does not quote its tax file number (or, in some cases, its ABN). Section 12‑145 is about an investor becoming presently entitled to income of a unit trust.

 (2) The Commissioner's power to vary an amount includes the power to reduce the amount to nil.

 (3) A variation must be made by a written notice:
 (a) if it applies to a particular entity— that is given to that entity; or
 (b) if it applies to a class of entities—that is given to each of the entities, or a copy of which is published in the Gazette.

16‑20  Payer discharged from liability to recipient for amount withheld

  An entity that:
 (a) withholds an amount as required by Division 12; or
 (b) pays to the Commissioner an amount as required by Division 14;
is discharged from all liability to pay or account for that amount to any entity except the Commissioner.

Note: The entity may be required to refund the amount in some circumstances. See Subdivision 18‑B.

Penalties for not withholding

16‑25  Failure to withhold: offence

 (1) An entity must not fail to withhold an amount as required by Division 12.

Penalty: 10 penalty units.

Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

Note 2: See sections 16‑30, 16‑35 and 16‑40 for an alternative civil penalty.

 (2) An entity must not fail to pay to the Commissioner an amount as required by Division 14.

Penalty: 10 penalty units.

Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

Note 2: See sections 16‑30, 16‑35 and 16‑40 for an alternative civil penalty.

 (3) An offence against subsection (1) or (2) is a strict liability offence.

 (4) If a person is convicted of an offence in relation to:
 (a) a failure by that person or someone else to withhold an amount as required by Division 12; or
 (b) a failure by that person or someone else to pay to the Commissioner an amount as required by Division 14;
the court may order the convicted person to pay to the Commissioner an amount up to the *amount required to be withheld. The court may so order in addition to imposing a penalty