Commonwealth Consolidated Acts

TAXATION ADMINISTRATION ACT 1953 - SECT 8WC

  (1)   Where:

  (a)   a person is an investor in relation to 2 or more investments of a similar kind; and

  (b)   having regard to:

  (i)   the manner in which the person became an investor in relation to the investments; and

  (ii)   any explanation made by the person as to becoming such an investor in that manner;

    it would be reasonable to conclude that the person became such an investor in that manner for the sole or dominant purpose of ensuring, or attempting to ensure that:

  (iii)   although the person has not, under Part   VA of the Income Tax Assessment Act 1936 , quoted the person's tax file number in connection with those investments (in this subparagraph called the non - TFN investments ):

  (A)   amounts would not be deducted under Division   3B of that Act, or withheld under section   12 - 140 or 12 - 145 in Schedule   1 to this Act, from income in respect of one or more of the non - TFN investments; and

  (B)   amounts would not be paid to the Commissioner under section   14 - 5 in Schedule   1 to this Act, in relation to income in respect of one or more of the non - TFN investments; and

  (C)   TFN withholding tax would not be payable under section   14 - 55 in Schedule   1 to this Act in respect of one or more of the non - TFN investments; or

  (iv)   the investments are not referred to in a report under the regulations made under that Act;

the person commits an offence.

Penalty:   100 penalty units or imprisonment for 2 years, or both.

  (2)   In this section:

"investment" means an investment of a kind mentioned in section   202D of the Income Tax Assessment Act 1936 .

"investor" means an investor within the meaning of that section.