INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3 - Provisional tax  

Subdivision A - General provisions  

SECTION 221YDAA   NOTIFICATION OF INSTALMENTS OF PROVISIONAL TAX  

221YDAA(1)   [Service of notice]  

The Commissioner may cause a notice in writing to be served on the taxpayer specifying:

(a) the amount payable by the taxpayer as an instalment of provisional tax for a year of income; and

(b) the date on which the instalment is due and payable.

221YDAA(2)   [Notice incorporated in notice of assessment]  

An instalment notice may be incorporated in a notice of assessment.

221YDAA(3)   [Due date in instalment notice]  

The date to be specified in the instalment notice as the date on which an amount is due and payable by the taxpayer as an instalment of provisional tax for the year of income shall be a date that is not earlier than 30 days after the date of service of the notice and not earlier than whichever of the following dates in the year of income is applicable:

(a) where paragraph 221YBA(3)(a) applies:

(i) 1 December for the first instalment;

(ii) 1 March for the second instalment; or

(iii) 1 June for the third instalment;

(b) where paragraph 221YBA(3)(b) applies:

(i) 1 September for the first instalment;

(ii) 1 December for the second instalment;

(iii) 1 March for the third instalment; or

(iv) 1 June for the fourth instalment;

(c) where paragraph 221YBA(3)(c) applies:

(i) 1 February for the first instalment; or

(ii) 1 June for the second instalment.

221YDAA(3A)   [Due date not in accordance with subsec (3)]  

Where:

(a) an instalment notice is served (not including an instalment notice that is deemed by subsection (7) to have been served); and

(b) either of the following subparagraphs applies:

(i) no due date for payment of the instalment is specified in the instalment notice;

(ii) the due date for payment of the instalment purportedly specified in the instalment notice is not in accordance with subsection (3);

this Division has effect as if the instalment notice had specified, as the date on which the instalment is due and payable, whichever is the later of the following dates:

(c) the thirtieth day after the date of service of the instalment notice;

(d) the date applicable under whichever of paragraphs (3)(a), (b) and (c) applies to the instalment.

221YDAA(4)   [Notice of first instalment of no effect]  

An instalment notice in respect of the first instalment of provisional tax for a year of income (in this subsection referred to as the ``current year of income'' ) is of no effect if:

(a) the date specified in:

(i) a notice of assessment of the tax payable by the taxpayer in respect of the income of the next preceding year of income in which is notified the amount of provisional tax payable by the taxpayer for the current year of income; or

(ii) a notice under paragraph 221YD(1)(b) in which is notified the amount of the provisional tax payable by the taxpayer for the current year of income;

as the date of issue of the notice is earlier than the instalment notice date; or

(b) the previous year's provisional tax amount, as at the instalment notice date, does not exceed $8,000.

221YDAA(5)   [Notice of instalment of no effect]  

An instalment notice in respect of an instalment (other than the first instalment) of provisional tax for a year of income is of no effect unless an instalment notice has been served in respect of the first instalment for the year of income.

221YDAA(6)   [Notice where tax liability has increased]  

Where:

(a) the applicable provisional tax amount in relation to an instalment of provisional tax payable by a taxpayer for a year of income is ascertained as at a particular date by reference to the taxpayer's estimated taxable income for any year of income as shown in a statement furnished under subsection 221YDA(1) ; and

(b) by virtue of the subsequent application of section 221YHAAC or 221YHAAD , that estimated taxable income is deemed to have been increased;

the following provisions apply:

(c) the Commissioner shall redetermine the taxpayer's liability to pay the instalment;

(d) where the taxpayer has been served with an instalment notice in respect of the instalment, the Commissioner shall cause a notice in writing to be served on the taxpayer specifying the amount by which the instalment is increased;

(e) this Division has, and shall be deemed to have had, effect as if the increased amount had been specified in the instalment notice.

221YDAA(7)   [Notice where tax liability is nil]  

Where:

(a) the Commissioner is satisfied that, if an instalment notice in relation to an instalment of provisional tax for a year of income (other than the first instalment) were to specify a particular date as the date of its issue and to be served on a taxpayer, the amount of the instalment would be nil; and

(b) the Commissioner decides not to cause the notice to be served;

this Division has effect as if:

(c) the instalment notice had specified that date as the date of its issue and had been served on the taxpayer; and

(d) the instalment were due and payable on whichever is the later of the following dates:

(i) the date applicable under whichever of paragraphs (3)(a), (b) and (c) applies to the instalment;

(ii) the date on which the previous instalment became due and payable.