13‑5 Payment to the Commissioner in resp13‑5 Payment to the Commissioner in respect of alienated personal services payments

#### 13‑5 Payment to the Commissioner in respect of alienated personal services payments Obligation to pay amounts (1) A \*personal services entity must pay an amount of tax to the Commissioner if: (a) it receives an \*alienated personal services payment that relates to an individual’s personal services income; and (b) it receives the payment during a \*PAYG payment period for which it is a \*personal services payment remitter. Working out the amounts (2) Use this method statement to work out the amount: Method statement Step 1. Identify the payments that the \*personal services entity makes to the individual during the period mentioned in paragraph (1)(b) that are \*withholding payments covered by section 12‑35. Step 2. Identify the amounts that: (a) are included in the individual’s assessable income under section 86‑15 of the Income Tax Assessment Act 1997; and (b) relate to \*alienated personal services payments the entity receives during that period. Step 3. Work out the sum of all the amounts that Division 12 would require the entity to withhold in respect of that period if both of these were taken into account: (a) the payments identified in step 1; and (b) the amounts identified in step 2, as if they were payments of salary covered by section 12‑35. Step 4. Work out the sum of all the amounts withheld under section 12‑35 from the payments identified in step 1. Step 5. Subtract the sum under step 4 from the sum under step 3. > Note: Example: For the PAYG payment period of 1 April 2001 to 30 June 2001, NewIT Pty. Ltd. received amounts totalling $18,000 that were Ron’s personal services income. NewIT does not conduct a personal services business. > Note: During the period, NewIT paid Ron $3,000 in salary. This is a withholding payment covered by section 12‑35 (step 1). > Note: $15,000 of the amount NewIT received is included in Ron’s assessable income under section 86‑15 of the Income Tax Assessment Act 1997 (step 2). > Note: If NewIT had paid the $15,000 in salary to Ron within 14 days after the end of the PAYG payment period, the amount that NewIT would have had to withhold under Division 12 on the total amount of $18,000 would have been $4,000 (step 3). > Note: NewIT withheld $500 from the salary payment of $3,000, as required by section 12‑35 (step 4). > Note: On the basis of these facts, the amount NewIT must pay to the Commissioner (step 5) is:  (3) Subject to subsections (4) and (5), the \*personal services entity must pay the amount to the Commissioner by the end of the 21st day after the end of the \*PAYG payment period. > Note: A different rule applies for alienated personal services payments that large withholders and medium withholders make during the 2000‑01 income year. See section 13‑20. (4) If: (a) the \*personal services entity is a \*deferred BAS payer on the 21st day after the end of the \*PAYG payment period; and (b) the personal services entity’s PAYG payment period is a \*quarter; the entity must pay that amount to the Commissioner as shown in the table: ```html <table cellspacing="0" cellpadding="0" style="margin-left:56.7pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:272.8pt; border-top:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Payments by </span><span style="font-size:8pt; font-weight:bold; vertical-align:3pt">*</span><span style="font-weight:bold">deferred BAS payers</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Item</span></p></td><td style="width:88.55pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">If paragraph</span><span style="font-weight:bold"> </span><span style="font-weight:bold">(4)(a) applies to the </span><span style="font-size:8pt; font-weight:bold; vertical-align:3pt">*</span><span style="font-weight:bold">quarter ending on:</span></p></td><td style="width:138.1pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">the amount for this quarter must be paid by the end of:</span></p></td></tr></thead><tbody><tr><td style="width:24.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:88.55pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>30</span><span> </span><span>September</span></p></td><td style="width:138.1pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>the following 28</span><span> </span><span>October</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:88.55pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>31</span><span> </span><span>December</span></p></td><td style="width:138.1pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>the following 28</span><span> </span><span>February</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:88.55pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>31</span><span> </span><span>March</span></p></td><td style="width:138.1pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>the following 28</span><span> </span><span>April</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:88.55pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>30</span><span> </span><span>June</span></p></td><td style="width:138.1pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>the following 28</span><span> </span><span>July</span></p></td></tr></tbody></table> ``` (5) If: (a) the \*personal services entity is a \*deferred BAS payer on the 21st day after the end of the \*PAYG payment period; and (b) the personal services entity’s PAYG payment period is a month; the entity must pay that amount to the Commissioner: (c) by the end of the 28th day of the month following that period unless the PAYG payment period is a December; or (d) by the end of the 28th day of the next February if the PAYG payment period is a December.