(b) the entity is the relevant taxpayer or an associate (within the meaning given by section 318) of the relevant taxpayer; and
(c) the entity:
(i) is the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme; or
(ii) is otherwise connected with the scheme or any part of the scheme.
Reduced Australian tax liability
(6) The amount is:
(a) if the DPT tax benefit is a tax benefit mentioned in paragraph 177C(1)(a), (b), (ba) or (bc)—the amount of the tax benefit multiplied by the standard corporate tax rate; or
(b) otherwise—the amount of the DPT tax benefit.
(7) If the relevant taxpayer must withhold an amount in respect of withholding tax as a result of the tax benefit, reduce the amount worked out under subsection (6) by the amount withheld.
177M Diverted profits tax—sufficient economic substance test
(1) This section applies in relation to the relevant taxpayer, in relation to the DPT tax benefit, if the profit made as a result of the scheme by each entity covered by subsection (2) reasonably reflects the economic substance of the entity’s activities in connection with the scheme.
(2) This subsection covers an entity if:
(a) the entity is the relevant taxpayer or an associate (within the meaning given by section 318) of the relevant taxpayer; and
(b) any of the following apply:
(i) the entity entered into or carried out the scheme or any part of the scheme;
(ii) the entity is otherwise connected with the scheme or any part of the scheme.
(3) However, subsection (2) does not cover an entity if the entity’s role in the scheme is minor or ancillary.
(4) In determining whether the profit made as a result of the scheme by an entity reasonably reflects the economic substance of the entity’s activities in connection with the scheme, have regard to:
(a) the functions that the entity performs in connection with the scheme, taking into account assets used and risks assumed by the entity in connection with the scheme; and
(b) the documents covered by section 815‑135 of the Income Tax Assessment Act 1997, to the extent that they are relevant to the matters mentioned in paragraph (a) or to any other aspect of the determination; and
(c) any other relevant matters.
177N Diverted profits tax—consequences
If this Part applies to a scheme because of section 177J:
(a) section 177P applies to the relevant taxpayer mentioned in section 177J; and
(b) the Commissioner cannot make a determination under subsection 177F(1) or (2A) in relation to the scheme merely because of section 177J.
177P Diverted profits tax—liability
(1) The relevant taxpayer is liable to pay tax at the rate declared by the Parliament on:
(a) if this Part applies to a scheme in respect of the relevant taxpayer for the year of income mentioned in paragraph 177J(1)(a), in relation to one DPT tax benefit—the DPT base amount for that DPT tax benefit; or
(b) if this Part applies to a scheme in respect of the relevant taxpayer for the year of income mentioned in paragraph 177J(1)(a), in relation to more than one DPT tax benefit—the sum of the DPT base amounts for those DPT tax benefits.
Note: The tax is imposed by the Diverted Profits Tax Act 2017 and the rate of the tax is set out in that Act.
(2) The DPT base amount for a DPT tax benefit is:
(a) if the DPT tax benefit is a tax benefit mentioned in paragraph 177C(1)(a), (b), (ba) or (bc)—the amount of the DPT tax benefit; or
(b) otherwise—the amount of the DPT tax benefit divided by the standard corporate tax rate.
(3) The tax is due and payable at the end of 21 days after the Commissioner gives the relevant taxpayer notice of the assessment of the amount of the tax for the year of income mentioned in paragraph 177J(1)(a).
Note: For assessments of the amount of the tax see Divisions 145 and 155 in Schedule 1 to the Taxation Administration Act 1953.
177Q Diverted profits tax—general interest charge on unpaid diverted profits tax or shortfall interest charge
If an amount of diverted profits tax or shortfall interest charge that an entity is liable to pay remains unpaid after the time by which it is due to be paid, the entity is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) starts at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the diverted profits tax or shortfall interest charge;
(ii) general interest charge on any of the diverted profits tax or shortfall interest charge.
Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.
177R Diverted profits tax—when shortfall interest charge is payable
An amount of shortfall interest charge that an entity is liable to pay under section 280‑102C in Schedule 1 to the Taxation Administration Act 1953 is due and payable 21 days after the day on which the Commissioner gives the entity notice of the charge.
Part VA—Tax file numbers
Division 1—Preliminary
202 Objects of this Part
The objects of this Part are, by means of the establishment of a system of tax file numbers:
(a) to increase the effectiveness and efficiency of the matching of information contained in reports given to the Commissioner under this Act or the regulations with information disclosed in income tax returns by taxpayers; and
(b) to prevent evasion of liability to taxation under the laws of the Commonwealth relating to income tax; and
(c) to facilitate the administration of any legislation enacted by the Parliament under which benefits are provided by the Commonwealth to students in relation to contributions or charges payable by students in respect of the costs of courses of study provided by institutions of higher education or vocational education and training, or in respect of the costs of other services and amenities available to students in connection with such institutions; and
(d) to facilitate the administration of any legislation enacted by the Parliament to impose charge equal to any shortfall in the amount spent by employers on training employees; and
(e) to facilitate the administration of a provision of an Act, being a provision which authorises the collection of a tax file number as a condition to the giving of personal assistance within the meaning of the Data‑matching Program (Assistance and Tax) Act 1990; and
(f) to facilitate the administration of the Data‑matching Program (Assistance and Tax) Act 1990; and
(g) to facilitate the administration of any legislation enacted by the Parliament in relation to the imposition of charge on an employer’s superannuation guarantee shortfall; and
(ga) to facilitate the administration of the Child Support (Assessment) Act 1989 and the Child Support (Registration and Collection) Act 1988; and
(gaa) to facilitate the administration of Part 2 of the Student Assistance Act 1973, which deals with ABSTUDY student start‑up loans and debts in relation to those loans; and
(h) to facilitate the administration of Division 6 of Part 4A of the Student Assistance Act 1973; and
(hab) to facilitate the administration of Chapter 2AA of the Social Security Act 1991, which deals with student start‑up loans and debts in relation to those loans; and
(hac) to facilitate the administration of the Australian Apprenticeship Support Loans Act 2014; and
(ha) to facilitate the administration of:
(i) Part 2B.3 of the Social Security Act 1991; or
(ii) a provision of an instrument under Chapter 2B of the Social Security Act 1991 (as in force before the commencement of Schedule 2 to the Youth Allowance Consolidation Act 2000) establishing a Student Financial Supplement Scheme, being a provision relating to the recovery through the taxation system of a student’s outstanding indebtedness in respect of financial supplement paid to the student in accordance with the Scheme; and
(hb) to facilitate the administration of Part 3.18 of the Social Security Act 1991; and
(hc) to facilitate the administration of Division 11A of Part IIIB of the Veterans’ Entitlements Act 1986; and
(i) to facilitate:
(i) the administration of Part 25A of the Superannuation Industry (Supervision) Act 1993 in relation to individuals; and
(ii) the administration of that Act in relation to superannuation entities (within the meaning of that Act) or regulated exempt public sector superannuation schemes (within the meaning of Part 25A of that Act); and
(ia) to facilitate the administration of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (including the administration of registers by State or Territory authorities (within the meaning of that Act) in accordance with section 18 of that Act); and
(j) to facilitate the administration of the Small Superannuation Accounts Act 1995; and
(ka) to facilitate:
(i) the administration of Part 11 of the Retirement Savings Accounts Act 1997 in relation to individuals; and
(ii) the administration of that Act in relation to RSA providers; and
(l) to facilitate the administration of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 and the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997; and
(la) to facilitate the administration of the Paid Parental Leave Act 2010; and
(m) to facilitate the administration of the A New Tax System (Family Assistance) (Administration) Act 1999 and section 5 of the A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 1) 1999; and
(o) to facilitate the administration of section 204A of the Social Security (Administration) Act 1999; and
(p) to facilitate the administration of the fuel tax law (within the meaning of section 110‑5 of the Fuel Tax Act 2006); and
(q) to facilitate the administration of Division 2AA of Part II of the Banking Act 1959; and
(r) to facilitate investigations under the Inspector‑General of Taxation Act 2003 (and provisions of the Ombudsman Act 1976 to the extent that they are applied by the Inspector‑General of Taxation Act 2003); and
(s) to facilitate the administration of Subdivision 14‑D in Schedule 1 to the Taxation Administration Act 1953; and
(sa) to facilitate the administration of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020; and
(t) to facilitate the administration of the Migration Act 1958; and
(u) to facilitate the administration of Part 9.1A of the Corporations Act 2001 and Part 6‑7A of the Corporations (Aboriginal and Torres Strait Islander) Act 2006.
202A Interpretation
In this Part, unless the contrary intention appears:
alienated personal services payment has the meaning given by section 13‑10 in Schedule 1 to the Taxation Administration Act 1953.
applicant, in relation to an application for the issue of a tax file number, means the person specified in the application as the person by whom or on whose behalf the issue of a tax file number is sought.
bank means:
(a) the Reserve Bank of Australia;
(b) a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959; or
(c) a person who carries on State banking within the meaning of paragraph 51(xiii) of the Constitution.
child means a person who is less than 16 years of age.
co‑operative housing society means a society registered or incorporated as a co‑operative housing society or similar society under a law of a State or Territory.
data processing device means any article or material from which information is capable of being reproduced with or without the aid of any other article or device.
eligible PAYG payment means:
(a) a payment from which an amount must be withheld under Subdivision 12‑B (other than section 12‑55), Subdivision 12‑C or Subdivision 12‑D in Schedule 1 to the Taxation Administration Act 1953; or
(aa) an alienated personal services payment in respect of which Division 13 in Schedule 1 to the Taxation Administration Act 1953 requires an amount to be paid to the Commissioner; or
(b) a non‑cash benefit in respect of which an amount is payable to the Commissioner under section 14‑5 in Schedule 1 to the Taxation Administration Act 1953 because of the application of that section in relation to Subdivision 12‑B, 12‑C or 12‑D of that Schedule;
and has a meaning affected by section 202AA.
entity means a body corporate or unincorporated association, but does not include a natural person or a partnership.
financial institution means:
(a) a bank; or
(b) a co‑operative housing society.
government body means the Commonwealth, a State, a Territory or an authority of the Commonwealth or of a State or Territory.
interest‑bearing account means any facility, other than an RSA, by which a financial institution:
(a) does any one or more of the following:
(i) accepts deposits of money to the credit of a person;
(ii) allows withdrawals from the money deposited;
(iii) pays cheques or payment orders drawn on the institution by, or collects cheques or payment orders on behalf of, the person; and
(b) pays or credits interest, or amounts in the nature of interest, on the balance standing to the credit of the person from time to time.
interest‑bearing deposit means a deposit of money, other than into an RSA, with a financial institution, in consideration of which the financial institution pays or credits interest, or amounts in the nature of interest, to a person.
investment body means a person who is an investment body within the meaning of section 202D.
investment to which this Part applies means an investment of a kind mentioned in section 202D.
investor means a person who is an investor within the meaning of section 202D.
payer means:
(a) a person who makes an eligible PAYG payment (other than an alienated personal services payment), or is likely to make such a payment; or
(b) a person who receives an alienated personal services payment, or is likely to receive such a payment.
person includes a partnership, a company and a person in the capacity of trustee of a trust estate.
public company means a public company within the meaning of the Corporations Act 2001.
recipient means:
(a) a person who receives an eligible PAYG payment (other than an alienated personal services payment), or is likely to receive such a payment; or
(b) a person in relation to whose personal services income (within the meaning of the Income Tax Assessment Act 1997) a payer receives an alienated personal services payment, or is likely to receive such a payment.
securities dealer has the same meaning as in the Income Tax Assessment Act 1997.
solicitor means a solicitor, barrister and solicitor or legal practitioner of the High Court or of the Supreme Court of a State or Territory.
tax file number, in relation to a person, means a number issued to the person by the Commissioner, being a number that is either:
(a) a number issued to the person under Division 2; or
(aa) a number issued to a person under section 44 or 48 of the Higher Education Funding Act 1988; or
(b) a number notified, before the commencement of this section, to the person as the person’s income tax file number.
TFN declaration means a declaration made for the purposes of section 202C.
unit trust means a trust to which a unit trust scheme relates, and includes:
(a) a cash management trust;
(b) a property trust;
(c) an arrangement declared by the Minister under section 202AB to be a unit trust for the purposes of this definition;
but does not include any arrangement declared by the Minister under section 202AB not to be a unit trust for the purposes of this definition.
unit trust scheme means an arrangement made for the purpose, or having the effect, of providing, for a person who has funds available for investment, facilities for participation by the person, as a beneficiary under a trust, in any profit or income arising from the acquisition, holding, management or disposal of property under the trust.
202AA Definition of eligible PAYG payment
In applying the definition of eligible PAYG payment in section 202A:
(a) a requirement to withhold a nil amount is treated as a requirement to withhold an amount; and
(b) a requirement to pay a nil amount to the Commissioner is treated as a requirement to pay an amount to the Commissioner; and
(c) the following provisions in Schedule 1 to the Taxation Administration Act 1953 are to be disregarded, namely: section 12‑1, subsection 12‑45(2), subsection 12‑110(2) and subsection 12‑115(2).
202AB Declaration that an arrangement is, or is not, a unit trust
The Minister may, by legislative instrument, declare that an arrangement is, or is not, a unit trust for the purposes of the definition of that term in section 202A.
Division 2—Issuing of tax file numbers
202B Application for tax file number
(1) A person may apply to the Commissioner for the issue of a tax file number.
(2) An application must be in the approved form. The approved form may require the application to include documentary evidence of the applicant’s identity.
202BA Issuing of tax file numbers
(1) Subject to subsection (3), if, on an application for a tax file number, the Commissioner is satisfied that the applicant’s identity has been established, the Commissioner shall issue a tax file number to the applicant.
(2) If, on such an application, the Commissioner is not satisfied as to the applicant’s true identity, the Commissioner may refuse the application.
(3) If, on such an application, the Commissioner is satisfied that:
(a) the applicant already has a tax file number; or
(b) a notice under section 202BD in relation to the applicant is in force;