Commonwealth Consolidated Acts Commonwealth Consolidated ActsNo deduction if amount not withheld or Commissioner not notified
(1) You cannot deduct under this Act a payment if:
(a) any of the following provisions in Schedule 1 to the Taxation Administration Act 1953 require you to withhold an amount from the payment:
(i) section 12 - 35 (about payments to employees);
(ii) section 12 - 40 (about payments to directors);
(iii) section 12 - 47 (about payments to * religious practitioners);
(iv) section 12 - 60 (about payments under labour hire and certain other arrangements);
(v) in relation to a * supply, other than a supply referred to in subsection (3) of this section--section 12 - 190 (about quoting of * ABN); and
(b) either:
(i) you fail to withhold an amount (whether or not that amount is the amount required to be withheld as mentioned in paragraph (a)) from the payment; or
(ii) after withholding the amount from the payment, you fail to comply, or purportedly comply, with section 16 - 150 or 389 - 5 (as the case requires) in that Schedule, in relation to the amount.
(2) You cannot deduct under this Act a * non - cash benefit if:
(a) section 14 - 5 in Schedule 1 to the Taxation Administration Act 1953 requires you to pay an amount to the Commissioner before providing the benefit, because of any of the following provisions in that Schedule:
(i) section 12 - 35 (about payments to employees);
(ii) section 12 - 40 (about payments to directors);
(iii) section 12 - 47 (about payments to * religious practitioners);
(iv) section 12 - 60 (about payments under labour hire and certain other arrangements);
(v) in relation to a * supply, other than a supply referred to in subsection (3) of this section--section 12 - 190 (about quoting of * ABN); and
(b) you fail to comply, or purportedly comply, with section 16 - 150 in that Schedule in relation to the amount.
(3) For the purposes of subparagraphs (1)(a)(v) and (2)(a)(v), the supplies are supplies that are wholly a * supply of either or both of the following:
(a) a supply of goods (within the meaning of section 195 - 1 of the * GST Act);
(b) a supply of real property (within the meaning of that section of that Act).
Exception--nil amounts
(4) Subsection (1) or (2) does not apply if the amount required to be withheld, or the amount required to be paid to the Commissioner, (as the case requires) is a nil amount.
Exception--ABN quoted
(5) Subsection (1) does not apply in relation to an amount required to be withheld from a payment under section 12 - 35 in Schedule 1 to the Taxation Administration Act 1953 , if:
(a) when the payment is made, you have been given:
(i) an * invoice or some other document that relates to the payment that * quotes the individual's * ABN; or
(ii) if the payment relates to a * supply that has been made through an * agent--an invoice or some other document that relates to the payment that quotes the agent's ABN; or
(b) when the payment is made:
(i) you have been given an invoice or some other document that relates to the payment that purports to quote the individual's ABN; and
(ii) the individual does not have an ABN, or the invoice or other document does not in fact quote the individual's ABN; and
(iii) you have no reasonable grounds to believe that the individual does not have an ABN, or that the invoice or other document does not quote the individual's ABN; or
(c) if the payment relates to a supply that has been made through an agent--when the payment is made:
(i) you have been given an invoice or some other document that relates to the payment that purports to quote the agent's ABN; and
(ii) the agent does not have an ABN, or the invoice or other document does not in fact quote the agent's ABN; and
(iii) you have no reasonable grounds to believe that the agent does not have an ABN, or that the invoice or other document does not quote the agent's ABN.
(6) Subsection (2) does not apply in relation to a * non - cash benefit that requires an amount to be paid to the Commissioner, if:
(a) when the non - cash benefit is provided, you have been given:
(i) an * invoice or some other document that relates to the non - cash benefit that * quotes the individual's * ABN; or
(ii) if the non - cash benefit relates to a * supply that has been made through an * agent--an invoice or some other document that relates to the non - cash benefit that quotes the agent's ABN; or
(b) when the non - cash benefit is provided:
(i) you have been given an invoice or some other document that relates to the non - cash benefit that purports to quote the individual's ABN; and
(ii) the individual does not have an ABN, or the invoice or other document does not in fact quote the individual's ABN; and
(iii) you have no reasonable grounds to believe that the individual does not have an ABN, or that the invoice or other document does not quote the individual's ABN; or
(c) if the non - cash benefit relates to a supply that has been made through an agent--when the non - cash benefit is provided:
(i) you have been given an invoice or some other document that relates to the non - cash benefit that purports to quote the agent's ABN; and
(ii) the agent does not have an ABN, or the invoice or other document does not in fact quote the agent's ABN; and
(iii) you have no reasonable grounds to believe that the agent does not have an ABN, or that the invoice or other document does not quote the agent's ABN.
Exception--voluntarily tell the Commissioner about a mistake
(7) Subsection (1) does not apply if, before the Commissioner tells you that an examination is to be made of your affairs relating to a * taxation law for a relevant period, you voluntarily tell the Commissioner, in the * approved form, that you have failed to:
(a) withhold an amount; or
(b) comply with section 16 - 150 or 389 - 5 (as the case requires) in Schedule 1 to the Taxation Administration Act 1953 in relation to the amount.
(8) Subsection (2) does not apply if, before the Commissioner tells you that an examination is to be made of your affairs relating to a * taxation law for a relevant period, you voluntarily tell the Commissioner, in the * approved form, that you have failed to comply with section 16 - 150 in Schedule 1 to the Taxation Administration Act 1953 in relation to the amount.
Table of Subdivisions
Guide to Division 27
27 - A General
27 - B Effect of input tax credits etc. on capital allowances