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 2-10 - PAY AS YOU GO (PAYG) INSTALMENTS  

Division 45 - Instalment payments  

Subdivision 45-P - Anti-avoidance rules  

SECTION 45-610   45-610   WHAT IS YOUR TAX POSITION FOR AN INCOME YEAR?  


Your tax position for an income year consists of a number of components . The table sets out each component, and how to work out the amount of the component.


Components of your tax position that relate to PAYG instalments and credits
Item Each of these is a component : The amount of that component is:
1 Your instalment for each *instalment quarter in the income year is a quarterly instalment component . The amount worked out as follows:
(a) if you are liable to pay an instalment for that instalment quarter - the amount of the instalment; or
(b) if for any reason you are not liable to pay an instalment for that instalment quarter - nil (even if you are an *annual payer or a *quarterly payer who pays 2 instalments annually on the basis of GDP-adjusted notional tax); or
(c) if you are entitled to claim a credit for that instalment quarter under section 45-420 (because the instalment for that quarter is to be worked out on the basis of your estimated benchmark tax) - the amount of the credit (expressed as a negative amount).
2 Your annual instalment for the income year is the annual instalment component . The amount worked out as follows:
(a) if you are liable to pay an annual instalment for the income year - the amount of the instalment; or
(b) if for any reason you are not liable to pay an annual instalment for the income year - nil (even if you are a *quarterly payer).
3 A variation credit component is a credit arising under section 45-215 because the amount of your instalment for an *instalment quarter in the income year is to be worked out using an instalment rate you chose under section 45-205 . The amount worked out as follows:
(a) if you are entitled to the credit - the amount of the credit (expressed as a negative amount); or
(b) otherwise - nil.
4 A variation GIC component is the *general interest charge you are liable to pay under: The amount worked out as follows:
(a) subsection 45-230(2) (varied instalment rate); or (a) if you are liable to pay the charge - the amount of the charge; or
(b) subsection 45-232(2) (estimated benchmark tax); or (b) otherwise - nil.
(c) subsection 45-235(2) or (3) (annual instalment);
because of how your instalment for an *instalment quarter in the income year, or for the income year, was worked out.

Example:

A scheme results in X Pty Ltd being able to choose to be an annual payer for the 2000-01 income year.

The following table shows the actual tax position of X Pty Ltd for that year, and also its hypothetical tax position as defined in section 45-615 . X Pty Ltd has got 4 tax benefits from the scheme: one for each of the 4 instalment quarters.


2000-01 income year
For this component: The amount of that component of the actual tax position is: The amount of that component of the hypothetical tax position is:
Quarterly instalment component for first instalment quarter nil $3,000
Quarterly instalment component for second instalment quarter nil $4,000
Quarterly instalment component for third instalment quarter nil $3,000
Quarterly instalment component for fourth instalment quarter nil $2,000
Annual instalment component $12,000 nil




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