INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
This section operates to alter the classification of taxpayers in certain circumstances. It applies where a taxpayer makes an estimate under section 221AZO (the ``first estimate'' ) before the end of the reckoning day and also makes an estimate under that section (the ``later estimate'' ) after the reckoning day and before the end of 2 months after that day.
If columns 1, 2 and 3 of a row in the following table apply to a taxpayer for the current year, the classification of the taxpayer for the current year is taken to be the classification in column 4 of that row:
|Column 1||Column 2||Column 3||Column 4|
|Row||Classification but for this section and section 221AZMA||Classification on the basis of assumption 1 in subsection (3)||Classification on the basis of assumption 2 in subsection (3)||Classification as a result of this section|
The following table sets out the assumptions referred to in subsection (2):
|Assumption 1||Assumption 1 is that the first estimate was never lodged.|
|Assumption 2||Assumption 2 is that the later estimate was lodged immediately before the end of the reckoning day.|
If this section operates, then, for the purposes of the calculation of the taxpayer's likely tax, the later estimate is taken to have been made immediately before the end of the reckoning day.
The classification of a taxpayer as a result of this section is subject to section
Section 221AZMA may change the classification of a company from medium to large after this section has changed the classification from small to medium.