INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 1A - Collection by instalments of tax on companies in respect of years of income before the year of income ending on 30 June 1990  

SECTION 221AE   AMOUNT OF INSTALMENT OF TAX  

221AE(1)   [Amount payable]  

Subject to subsections (2) and (4), the amount payable by a company as an instalment of tax in respect of its income of a year of income is an amount equal to one-quarter of the amount that, on the date shown on the notice in respect of that instalment of tax served on the company in accordance with section 221AF as being the date of issue of that notice, is the notional tax of the company in respect of that year of income.

221AE(1A)   [Instalment not payable]  

Where the amount that would, but for this subsection, be payable by a company as an instalment of tax in respect of its income of a year of income is less than:

(a) $250; or

(b) if the Commissioner has determined another amount under subsection (1B) in relation to the year of income, that other amount;

then, unless the Commissioner otherwise determines in relation to the company or a specified class of companies in which the company is included, the instalment is not payable.

221AE(1B)   [Variation of minimum amount]  

For the purposes of this section, the Commissioner may, by notice published in the Gazette , determine an amount other than $250 as the minimum amount in relation to instalments of tax payable by companies in respect of income of a specified year of income and each subsequent year of income.

221AE(2)   [Commissioner's discretion]  

The Commissioner may, having regard to the purpose for which this Division was enacted and to particular circumstances that exist in relation to a company, determine that the amount that, but for this subsection, would be payable by the company as an instalment of tax in respect of its income of a year of income shall be reduced by such amount as he thinks appropriate or that an instalment of tax that would otherwise be payable by the company in respect of its income of a year of income is not payable.

221AE(3)   [Particular circumstances]  

The particular circumstances to which regard may be had under subsection (2) in relation to a company include the operation, in relation to the company in relation to the year of income or the year immediately preceding the year of income, of subsection 98A(2) , Division 18 of Part III , section 160AQK or Division 3A of this Part, or of the Income Tax (International Agreements) Act 1953-1973 .

221AE(4)   [Income tax payable in excess of notional tax]  

If the Commissioner has reason to believe that the amount of income tax that will be payable by a company in respect of its taxable income of a year of income will be greater than the notional tax by reference to which an amount payable by the company as an instalment of tax in respect of its income of the year of income is to be calculated, he may, for the purposes of the notice to be served on the company in respect of that instalment in accordance with section 221AF , determine that the amount that, but for this subsection, would be payable by the company under subsection (1) as that instalment of tax shall be increased by such amount as he thinks appropriate.

221AE(5)   [One unpaid instalment of tax]  

If, on the date on which income tax becomes due and payable in respect of the taxable income of a company of a year of income, the whole or a part of an amount payable as an instalment of tax in respect of the income of the company of that year of income has not been paid and there is no other instalment of tax in respect of the income of the company of that year of income the whole or a part of which has not been paid:

(a) where no part of the income tax in respect of the taxable income of the company of that year of income has been paid - so much, if any, of the amount unpaid in respect of that instalment as exceeds the amount of that income tax ceases, on that date, to be payable;

(b) where part only of the income tax in respect of the taxable income of the company of that year of income has been paid - so much, if any, of the amount unpaid in respect of that instalment as exceeds the amount of that income tax that has not been paid ceases, on that date, to be payable; or

(c) where the whole of the income tax in respect of the taxable income of the company of that year of income has been paid - the amount unpaid in respect of that instalment ceases, on that date, to be payable.

221AE(6)   [Two or more unpaid instalments]  

If, on the date on which income tax becomes due and payable in respect of the taxable income of a company of a year of income, there are 2 or more instalments of tax in respect of the income of the company of that year of income the whole or a part of each of which has not been paid:

(a) where no part of the income tax in respect of the taxable income of the company of that year of income has been paid or part only of that income tax has been paid - the Commissioner may determine that the whole or any part of all or any of the amounts unpaid in respect of those instalments shall cease, on that date, to be payable; or

(b) where the whole of the income tax in respect of the taxable income of the company of that year of income has been paid - each of the amounts unpaid in respect of those instalments ceases, on that date, to be payable.

221AE(7)   [Determination under sec 221AE(6)(a)]  

In making a determination for the purposes of paragraph (6)(a), the Commissioner shall have regard to the extent, if any, to which the sum of the amounts unpaid in respect of the instalments of tax referred to in that paragraph exceeds the amount of the income tax referred to in that paragraph that has not been paid and to any other relevant matters.