Document ID: chunk:federal_register_of_legislation:C2016A00010:clause:2_1:p1
Version: federal_register_of_legislation:C2016A00010
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 1/6)
Character Range: 35388–38104

1  At the end of Division 14 in Schedule 1
Add:

Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property

Table of sections
14‑200 Certain acquisitions of taxable Australian property from foreign residents
14‑210 Whether an entity is a relevant foreign resident
14‑215 Excluded transactions
14‑220 Commissioner clearance certificates
14‑225 Entity declarations
14‑230 Administrative penalties for false or misleading declarations
14‑235 Varying amounts to be paid to the Commissioner

14‑200  Certain acquisitions of taxable Australian property from foreign residents
 (1) You must pay to the Commissioner an amount if:
 (a) you become the owner of a *CGT asset as a result of *acquiring it from one or more entities under one or more transactions; and
 (b) subsection 14‑210(1) (about foreign residents) applies to at least one of those entities at the time one of those transactions is entered into; and
 (c) at that time, the CGT asset is:
 (i) *taxable Australian real property; or
 (ii) an *indirect Australian real property interest; or
 (iii) an option or right to acquire such property or such an interest;
unless a transaction referred to in paragraph (a) is excluded under section 14‑215.
Note: You must pay the amount on account of income tax possibly payable by the entities on their capital proceeds resulting from your acquisition of the CGT asset.
 (2) You must pay the amount to the Commissioner on or before the day you became the *CGT asset's owner.
Note: There are penalties for failing to pay the amount (see Division 16).
 (3) The amount to be paid to the Commissioner is:
 (a) unless paragraph (b) applies—an amount equal to 10% of:
 (i) the first element of the *CGT asset's *cost base just after the *acquisition; less
 (ii) if the acquisition is the result of you exercising an option—any payment you made, and the *market value of any property you gave, for the option (or to renew or extend it); or
 (b) the varied amount applying under section 14‑235.
 (4) This section does not apply if the amount that would otherwise be payable is nil.

14‑210  Whether an entity is a relevant foreign resident

Is the entity a foreign resident at the time of the transaction?
 (1) This subsection applies to an entity at the time a transaction is entered into if, at that time:
 (a) you know that the entity is a foreign resident; or
 (b) you reasonably believe that the entity is a foreign resident; or
 (c) you do not reasonably believe that the entity is an Australian resident, and either:
 (i) the entity has an address outside Australia (according to any record that is in your possession, or is kept or maintained on your behalf, about the transaction); or