INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3B - Collection of tax in respect of certain payments  

Subdivision B - Deductions from certain payments  

SECTION 221YHZD   DUTY OF PAYER TO PAY DEDUCTED AMOUNT TO COMMISSIONER  

221YHZD(1AAA)   [When payments to be made]  

A person who deducts, or purports to deduct, under subsection 221YHZC(1) , an amount from a payment to a non-resident must pay the amount to the Commissioner within 14 days after the end of the month in which the person makes the payment to the non-resident.

221YHZD(1)   [Person to remit deducted amount to Commissioner]  

A person who deducts, or purports to deduct, under subsection 221YHZC(1) , an amount from a payment to a non-resident, must notify the Commissioner in writing of the date on which the amount was deducted within 14 days after the end of the month in which the person makes the payment to the non-resident.

Penalty for a contravention of this subsection: $5,000 or imprisonment for 12 months, or both.

Note:

The person must also notify the Commissioner of the amount on or before the day on which the person must pay it: see section 221YHZCA .

221YHZD(1A)   [Investment body to remit deducted amount to Commissioner]  

Subject to subsection (1AB), an investment body in relation to a Part VA investment who deducts, or purports to deduct, under subsection 221YHZC(1A) , an amount from a payment to a person of income in respect of the investment shall pay the amount to the Commissioner within 21 days after the end of the month during which the income is so paid.

221YHZD(1AA)   [Commissioner may vary requirements]  

The Commissioner may, by notice in writing served on an investment body, vary, in relation to the investment body, in such instances and to such extent as the Commissioner thinks fit, any of the requirements of subsection (1A).

221YHZD(1ABA)   Application.  

The Commissioner must not exercise his or her power under subsection (1AA) on or after 1 July 2000.

Note:

For provisions about collection and recovery of amounts on or after 1 July 2000 (including provisions about the variation of the time for paying an amount), see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .

221YHZD(1AB)   [Amount to be remitted reduced by refund]  

Subject to subsection (1AC), if:

(a) in discharging a liability under subsection 221YHZDA(1) or paragraph 221YHZDAC(1)(d) , an investment body refunds to a person the whole or part of the amount of a deduction made in error during a financial year; and

(b) the investment body is, apart from this subsection, required under subsection (1A) of this section to pay to the Commissioner an amount (the amount to be remitted ) deducted, or purportedly deducted, during the same financial year from a payment of income to that person or to any other person; and

(c) the investment body makes a record to the effect that it offsets the whole or part of the refund against the amount to be remitted;

the amount to be remitted is reduced by the whole or the part of the refund.

221YHZD(1AC)   [Where offset not allowed]  

The investment body must not record under paragraph (1AB)(c) that it offsets any part of a refund that:

(a) it has previously recorded under that paragraph; or

(b) it has applied to recover from the Commissioner under subsection 221YHZDA(1) or paragraph 221YHZDAC(1)(d) .

221YHZD(1B)   [Income not paid in money]  

An investment body in relation to a Part VA investment shall not, after the end of the phasing-in period mentioned in section 202DA and before 1 July 2000, pay to a person unattributed income in respect of the investment that is not paid in money unless an amount equal to the amount that would, if the income had been paid in the form of an amount of money equal to the value of the income, have been required to be deducted under subsection 221YHZC(1A) has been paid to the Commissioner in respect of the income.

Penalty: $1,000.

221YHZD(1C)   [Amount recoverable as debt]  

An amount paid by an investment body under subsection (1B) is recoverable by the investment body as a debt payable by the investor in relation to the investment concerned.

221YHZD(2)   [Liability to general interest charge]  

If any of the amount which a person is liable to pay under subsection (1AAA), (1A) or (1B) remains unpaid after the time by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:

(a) started at the beginning of the day by which the amount was due to be paid; and

(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

(i) the amount;

(ii) general interest charge on any of the amount.

Note:

The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .

221YHZD(3)   [Liability of trustee]  

Where:

(a) a person is liable:

(i) to pay to the Commissioner under subsection (1) or (1A) an amount deducted before 1 June 1993; or

(ii) to pay to the Commissioner under subsection (1B) an amount that became payable before 1 July 1993; and

(b) the property of that person has become vested in, or the control of the property of that person has passed to, a trustee;

the trustee is liable to pay the amount to the Commissioner.

221YHZD(4)   [Priority of debts of trustee]  

Notwithstanding anything contained in any other law of the Commonwealth, or in any law of a State or Territory, an amount payable to the Commissioner by a trustee under subsection (3) has priority over all other debts, whether preferential, secured or unsecured.

221YHZD(5)   [Priority of administration, winding up costs]  

Where a trustee, being a trustee of an estate of a bankrupt or the liquidator of a company that is being wound up, is liable to pay an amount to the Commissioner under this section, subsection (4) does not have the effect that the amount is payable in priority to any costs, charges or expenses of the administration of the estate or of the winding up of the company (including costs of a creditor or other person upon whose petition the sequestration order or the winding up order (if any) was made and remuneration of the trustee) that are lawfully payable out of the assets of the estate or of the company except where, in the case of the winding up of a company, the Crown in right of a State or of the Northern Territory or any other creditor is entitled to the payment of a debt by the liquidator, in priority to all or any of those costs, charges and expenses and has not waived that priority.