INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3A - Collection of tax in respect of certain payments for work  

Subdivision B - Operative provisions  

SECTION 221YHF   CREDITS IN RESPECT OF DEDUCTIONS FROM PRESCRIBED PAYMENTS  

221YHF(1)   [Payments to person not partnership or trustee]  

If:

(a) any deductions have been made under this Division from prescribed payments made in a year of income to a person (not being a partnership or the trustee of a trust estate); and

(b) an assessment has been made of the tax payable, or the Commissioner is satisfied that no tax is payable, by the person in relation to the year of income;

the person is entitled to a credit of an amount equal to the deductions.

221YHF(2)   [Payments to partnership]  

If:

(a) any deductions have been made under this Division from prescribed payments made in a year of income to a partnership; and

(b) the return of income of the partnership in relation to the year of income has been furnished to the Commissioner; and

(c) an assessment has been made of the tax payable, or the Commissioner is satisfied that no tax is payable, in relation to the year of income by a partner in the partnership whose individual interest in the net income or partnership loss of the partnership is wholly or partly attributable to the prescribed payments,

the partner is entitled to a credit of an amount equal to so much of the sum of the deductions as bears to that sum the same proportion as so much of that individual interest as is attributable to the prescribed payments bears to so much of the net income or partnership loss as is attributable to the prescribed payments.

221YHF(3)   [Payments to trustees]  

The following provisions have effect where any deductions are made under this Division from prescribed payments made during a year of income to the trustee of a trust estate:

(a) where:

(i) a share of the net income of the trust estate is included in the assessable income of a beneficiary in the trust estate under section 97 , being a share that is wholly or partly attributable to the prescribed payments; and

(ii) an assessment has been made of the tax payable, or the Commissioner is satisfied that no tax is payable, by the beneficiary in relation to the year of income,

the beneficiary is entitled to a credit of an amount equal to so much of the sum of the deductions as bears to that sum the same proportion as so much of that share of the net income of the trust estate as is attributable to the prescribed payments bears to so much of the net income of the trust estate as is attributable to the prescribed payments;

(b) where:

(i) the trustee is liable to be assessed under section 98 in respect of a share of the net income of the trust estate to which a beneficiary is presently entitled, being a share that is wholly or partly attributable to the prescribed payments; and

(ii) an assessment has been made of the tax payable, or the Commissioner is satisfied that no tax is payable, by the trustee in respect of that share,

the trustee is entitled to a credit of an amount equal to so much of the sum of the deductions as bears to that sum the same proportion as so much of that share of the net income of the trust estate as is attributable to the prescribed payments bears to so much of the net income of the trust estate as is attributable to the prescribed payments;

(c) where:

(i) the trustee is liable to be assessed under section 99 or 99A in respect of the net income, or a part of the net income, of the trust estate and that net income or part is wholly or partly attributable to the prescribed payments; and

(ii) an assessment has been made of the tax payable, or the Commissioner is satisfied that no tax is payable, by the trustee under those sections in respect of that net income or part,

the trustee is entitled to a credit of an amount equal to so much of the sum of the deductions as bears to that sum the same proportion as so much of the net income or part of the net income in respect of which the trustee is so liable to be assessed as is attributable to the prescribed payments bears to so much of the net income of the trust estate as is attributable to the prescribed payments;

(d) where there is no net income of the trust estate of the year of income, the trustee is entitled to a credit of an amount equal to the sum of the deductions.

221YHF(4)    

221YHF(5)    

221YHF(6)