Document ID: chunk:federal_register_of_legislation:C2010C00715:clause:1_1:p16
Version: federal_register_of_legislation:C2010C00715
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 16/21)
Character Range: 47196–49759

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 has done for him over a fortnight.

 If Nick were instead to pay Mike $1,000, Nick would have had to withhold $203 under Division 12 (in accordance with withholding rates current at the time).

 This section requires Nick to pay $203 to the Commissioner before giving the van to Mike.

 (3) This section does not apply to providing:
 (a) a *fringe benefit; or
 (b) a benefit that is an exempt benefit under the Fringe Benefits Tax Assessment Act 1986; or
 (c) a benefit that would be an exempt benefit under that Act if paragraphs (d) and (e) of the definition of employer in subsection 136(1) of that Act were omitted; or
 (d) a benefit constituted by the acquisition of a share or right under an employee share scheme (within the meaning of Division 13A of Part III of the Income Tax Assessment Act 1936).

14‑10  Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit

  If:
 (a) an entity (the payer) receives in the form of a *non‑cash benefit:
 (i) a *dividend of a company; or
 (ii) interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936); or
 (iii) a *royalty; and
 (b) section 12‑215, 12‑250 or 12‑285 would have required the payer to withhold an amount if the dividend, interest or royalty had been a payment in money;
the payer must pay that amount to the Commissioner before providing the benefit (or part of it) to another entity.

14‑15  Payer can recover amount paid to the Commissioner

 (1) The payer may recover from the recipient as a debt an amount that the payer has paid to the Commissioner under section 14‑5.

 (2) If the payer has paid an amount to the Commissioner under section 14‑10, the payer may:
 (a) if the payer has provided all of the benefit to another entity— recover the amount from that other entity as a debt; or
 (b) if the payer has provided a part of the benefit to another entity—recover from that other entity as a debt the corresponding proportion of the amount paid to the Commissioner.

 (3) If the payer can recover an amount from another entity under this section, the payer is entitled to set the amount off against debts due by the payer to the other entity.

[The next Division is Division 16.]

Division 16—Payer's obligations and rights

Table of Subdivisions

Guide to Division 16
 16‑A To