Taxation Administration Act 1953
16‑30 Failure to withhold: administrativ16‑30 Failure to withhold: administrative penalty for entity other than exempt Australian government agency
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16‑30 Failure to withhold: administrative penalty for entity other than exempt Australian government agency
(1) An entity (except an *exempt Australian government agency) that: (a) fails to withhold an amount as required by Division 12; or (b) fails to pay an amount to the Commissioner as required by Division 12A, 13 or 14; is liable to pay to the Commissioner a penalty equal to that amount.
Note 1: An entity may become liable under this section in respect of a payment it made or received that is taken to have been subject to withholding tax as a result of a Commissioner’s determination under subsection 177F(2A) of the Income Tax Assessment Act 1936 (see also subsection 177F(2F) of that Act).
Note 2: Division 298 in this Schedule contains machinery provisions for administrative penalties.
(2) Subsection (1) does not apply in relation to a failure to pay an amount to the Commissioner as required by Subdivision 14‑E if: (a) the amount relates to a *taxable supply of *new residential premises (other than *commercial residential premises); and (b) the entity was given a notice under section 14‑255: (i) stating that the premises are not new residential premises; or (ii) indicating that the entity will not be required to pay an amount to the Commissioner under section 14‑250 in relation to the supply; and (c) at the time *consideration for the supply (other than consideration provided as a deposit) is first provided, there was nothing in: (i) the contract for the supply; or (ii) any other circumstances relating to the supply; that made it unreasonable for the entity to believe that the statement or indication was correct. (3) Subsection (1) does not apply in relation to a failure to pay an amount to the Commissioner in relation to a *taxable supply as required by Subdivision 14‑E if: (a) the entity required to pay the amount in relation to the supply gives the supplier a bank cheque on or before the day *consideration for the supply (other than consideration provided as a deposit) is first provided; and (b) the bank cheque is for the amount the entity is required to pay to the Commissioner, and is payable to the Commissioner.