Taxation Administration Act 1953

PART IIB - RUNNING BALANCE ACCOUNTS, APPLICATION OF PAYMENTS AND CREDITS, AND RELATED MATTERS  

Division 3 - Treatment of payments, credits and RBA surpluses  

SECTION 8AAZL   AMOUNTS COVERED BY THIS DIVISION  

8AAZL(1)  
This Division sets out how the Commissioner must treat the following kinds of amount:

(a) a payment the Commissioner receives in respect of a current or anticipated tax debt or tax debts of an entity;

(b) a credit (including an excess non-RBA credit) that an entity is entitled to under a taxation law;

(c) an RBA surplus of an entity.

8AAZL(2)  
The Commissioner must treat each such amount using the method set out in section 8AAZLA or 8AAZLB (but not both).

Note:

In either case, section 8AAZLC has some additional rules that apply to RBA surpluses and to certain excess non-RBA credits.

8AAZL(3)  

However, the Commissioner does not have to treat an amount using either of those methods if doing so would require the Commissioner to apply the amount against a tax debt:

(a) that is due but not yet payable; or

(b) in respect of which the taxpayer has complied with an arrangement under section 255-15 to pay the debt by instalments; or

(c) in respect of which the Commissioner has agreed to defer recovery under section 255-5 .

8AAZL(4)  

Furthermore, the Commissioner does not have to treat an amount using either of those methods if:

(a) doing so would require the Commissioner to apply the amount against a tax debt; and

(b) the tax debt is a penalty that is due and payable under section 269-20 in Schedule 1 (penalties for directors of non-complying companies).