Document ID: chunk:federal_register_of_legislation:C2010C00300:clause:7_136
Version: federal_register_of_legislation:C2010C00300
Segment Type: clause
Provision Reference: sch 7 cl 136
Character Range: 55171–56910

136  Sections 16‑40 and 16‑43 in Schedule 1
Repeal the sections, substitute:

16‑40  Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment

  An *exempt Australian government agency that:
 (a) fails to withhold an amount as required by Division 12 from a *withholding payment covered by Subdivision 12‑F (about dividend, interest or royalty payment); or
 (b) fails to pay to the Commissioner an amount as required by Division 14 in respect of a withholding payment covered by that Subdivision;
is liable to pay to the Commissioner a penalty equal to that amount.

Note 1: An exempt Australian government agency may become liable under this section in respect of a payment it made or received that is taken to have been subject to withholding tax as a result of a Commissioner's determination under subsection 177F(2A) of the Income Tax Assessment Act 1936 (see also subsection 177F(2F) of that Act).

Note 2: Division 298 in this Schedule contains machinery provisions for administrative penalties.

16‑43  Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.

  An *exempt Australian government agency that:
 (a) fails to withhold an amount as required by Division 12 from a *withholding payment covered by Subdivision 12‑FB (about payments to foreign residents); or
 (b) fails to pay to the Commissioner an amount as required by Division 14 in respect of a withholding payment covered by that Subdivision;
is liable to pay to the Commissioner a penalty equal to that amount.

Note: Division 298 in this Schedule contains machinery provisions for administrative penalties.