TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12 - Payments from which amounts must be withheld  

Subdivision 12-E - Payments where TFN or ABN not quoted  

Payment in respect of investment

SECTION 12-150   LIMITED APPLICATION OF SECTION 12-140 TO PAYMENT UNDER FINANCIAL ARRANGEMENT  

12-150(1)  
This section limits the extent to which section 12-140 applies to a payment in respect of a *Part VA investment if the investment is a qualifying security (within the meaning of Division 16E of Part III of the Income Tax Assessment Act 1936 (about gains accruing on securities)) and:


(a) is of a kind mentioned in item 1 or 2 of the table in subsection 202D(1) of that Act; or


(b) is of a kind mentioned in item 3 of that table and is non-transferable.

Note:

Section 202D of the Income Tax Assessment Act 1936 lists the investments in connection with which tax file numbers are to be quoted.

12-150(2)  
Section 12-140 applies to the payment only to the extent that is covered by one or both of these paragraphs:


(a) so much of the payment as consists of periodic interest (within the meaning of Division 16E of Part III of the Income Tax Assessment Act 1936 );


(b) if the payment became payable at the end of the term (within the meaning of that Division) of the investment - so much of the payment as does not exceed what section 159GQ of that Act would include in the *investor ' s assessable income for the income year in which that term ended.

Note:

This limitation ensures that an amount is not withheld from payment of an amount in respect of which TFN withholding tax is payable. See Subdivision 14-B .

12-150(3)  
The adoption (under section 18 of the Income Tax Assessment Act 1936 ) of an accounting period ending on a day other than 30 June is disregarded for the purposes of:


(a) paragraph (2)(b) of this section; and


(b) the application of Division 16E of Part III of that Act for the purposes of that paragraph.




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