Taxation Ruling
IT 2128W - Withdrawal
Deductions of P.A.Y.E. tax instalments: director's fees
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Please note that the PDF version is the authorised version of this withdrawal notice.
FOI status:
may be releasedNotice of Withdrawal
Taxation Ruling IT 2128 is withdrawn with effect from today.
1. Taxation Ruling IT 2128 explains that pay as you earn (PAYE) tax instalment deductions should be deducted from director's fees.
2. Subsection 221C(1A) of the Income Tax Assessment Act 1936 only applies to payments made prior to 30 June 2000. From 1 July 2000, a company must withhold an amount from a payment of remuneration to a company director under section 12-40 of Schedule 1 to the Taxation Administration Act 1953.
3. The Ruling does not have application to income tax years after the 1999-2000 income year.
Commissioner of Taxation
1 November 2006