INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
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Hide history noteDepending on the amount of its assessed tax for the 1999-2000 year of income, an instalment taxpayer may defer payment of all or some of its final instalment for that year.
221AZKC(2) [Application]However, subsection (1) applies only if the taxpayer is liable to pay a quarterly instalment for the first instalment quarter of the 2000-01 year of income under Division
45
in Schedule
1
to the
Taxation Administration Act 1953
(even if the amount of that instalment is nil).
Note:
This means that an entity that becomes an annual payer at the end of that instalment quarter under Subdivision 45-E in Schedule 1 to the Taxation Administration Act 1953 does not qualify.
221AZKC(3) How much can be deferred, and for how long?(a) how much of the final instalment can be deferred (the deferred amount ); and
(b) the number of equal payments by which the taxpayer must pay off the deferred amount.
However, the deferred amount cannot be more than the whole of the instalment (reduced by any credits or offsets specified in paragraph 221AZP(1)(b) ).
| Paying off final instalment for 1999 - 2000 | |||
| Item | Amount of assessed tax for 1999 - 2000 | Maximum amount deferred | Number of equal payments |
| 1 | less than $8,000 | 100% of the assessed tax | 21 |
| 2 | $8,000 to $300,000 | 42% of the assessed tax | 21 |
| 3 | more than $300,000 | 20% of the assessed tax | 10 |
Note:
The amount of each payment is the deferred amount divided by the number of payments.
If only some of the final instalment can be deferred, the rest is still due on the day on which the whole of the instalment would otherwise be due. Section 221AZMAA (which applies the general interest charge to unpaid amounts) applies as if the rest of the final instalment were the whole of the final instalment.
221AZKC(5) When the quarterly payments are due.Subject to subsection (6), the first of the payments is due:
(a) if (disregarding anything the Commissioner does under Subdivision 255-B in Schedule 1 to the Taxation Administration Act 1953 ) the final instalment would otherwise be due on the 1st day of month 18 for the 1999-2000 year of income - on the 21st day of month 19 for that year; and
(b) if (disregarding anything the Commissioner does under Subdivision 255-B in Schedule 1 to the Taxation Administration Act 1953 ) the final instalment would otherwise be due on the 1st or 15th day of month 21 for the 1999-2000 year of income - on the 21st day of month 22 for that year.
Note:
The due date for the first payment is the same as for the taxpayer's next quarterly instalment for the 2000-01 year of income under Division 45 in Schedule 1 to the Taxation Administration Act 1953 . If the taxpayer's year of income ends on 30 June 2000, the due date will be 21 January or 21 April 2001. However, the due date may be 28 April 2001 if subsection (6) applies.
If the taxpayer is a deferred BAS payer on the day on which the first of the payments would otherwise be due under paragraph (5)(a), that payment is due instead:
(a) on the 28th day of month 19 for the 1999-2000 year of income unless all or a part of a December falls within month 18 for that year; or
(b) on the next 28 February if all or a part of a December falls within month 18 for that year.
If the taxpayer is a deferred BAS payer on the day on which the first of the payments would otherwise be due under paragraph (5)(b), that payment is due instead:
(a) on the 28th day of month 22 for that year unless all or a part of a December falls within month 21 for that year; or
(b) on the next 28 February if all or a part of a December falls within month 21 for that year.
Each of the remaining payments is due on the same day as when each subsequent notional PAYG quarterly instalment of the taxpayer would have been due, starting from the first notional PAYG quarterly instalment that would be due after the first of the payments under this section is due.
Note 1:
The taxpayer may actually be liable to pay PAYG quarterly instalments on the same day as the day worked out under this subsection.
Note 2:
If some or all of a payment under this section is not paid on time, the taxpayer is liable to pay the general interest charge on the unpaid amount: see section 221AZMAA .
In subsection (7A), notional PAYG quarterly instalment of the taxpayer means each PAYG instalment that the taxpayer would have been liable to pay under Division 45 in Schedule 1 to the Taxation Administration Act 1953 if the taxpayer had continued to be liable for 4 quarterly PAYG instalments each year (whether this is actually the case or not).
Example:
The final instalment of KP Ltd is due on 1st March 2001. As a medium taxpayer, KP Ltd deferred 42% of its final liability to be repaid in 21 equal payments. On the 21st April 2001, KP Ltd is a deferred BAS payer and the first payment under this section is therefore due on 28 April 2001.
KP Ltd has an obligation to pay PAYG instalments for each quarter of an income year. Being a deferred BAS payer, its subsequent payments under this section are therefore due on the same days as its PAYG instalments are due: 28th July, 28th October, 28th February and 28th April of an income year.
KP Ltd's circumstances change in the 2003 income year and the Commissioner has withdrawn its instalment rate. As a result, it no longer has a PAYG instalment obligation. However, it continues to meet the criteria for a deferred BAS payer (because it is not required to give a GST return for a monthly tax period). Its payments under this section therefore continue to be due on 28th July, 28th October, 28th February and 28th April of an income year.
Payments under this section are to be treated as tax for the purposes of sections 254 and 255 .
In this section, deferred BAS payer has the same meaning as in subsection 995-1(1) in the Income Tax Assessment Act 1997 .
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