Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12A - Distributions by AMITs (including deemed payments)  

Subdivision 12A-A - Distributions by AMITs relating to dividend, interest and royalties  

Operative provisions

SECTION 12A-30   MEANING OF AMIT DIVIDEND PAYMENT  

12A-30(1)  
This section applies to a trust that is an *AMIT for an income year.

12A-30(2)  
The object of this section is to ensure that the total of the *AMIT dividend payments that the trustee of the *AMIT makes in relation to the income year equals, as nearly as practicable, the amount mentioned in subsection (3).

12A-30(3)  
The amount is the total of the *determined member components for the *AMIT for the income year of the character of a dividend (as defined in Division 11A of Part III of the Income Tax Assessment Act 1936 ) that is subject to a requirement to withhold under Subdivision 12-F .

12A-30(4)  
A payment (the actual or deemed payment ) that the trustee of a trust makes in relation to an income year is an AMIT dividend payment in relation to that year. However, the amount of the AMIT dividend payment is worked out under the following method statement, and may be:


(a) the amount of the actual or deemed payment; or


(b) the amount of the actual or deemed payment, increased or reduced as a result of the method statement.

Note:

The payment by the trustee may be an actual payment, or a deemed payment under section 12A-205 .

Method statement

Step 1.

Work out what it is reasonable to expect will be the amount mentioned in subsection (3).


Step 2.

The AMIT dividend payment is so much of the step 1 amount as is reasonable having regard to:

  • (a) the object of this section; and
  • (b) the amounts of any earlier AMIT dividend payments made by the trustee in relation to the income year; and
  • (c) the expected amounts of any later AMIT dividend payments the trustee expects to make in relation to the income year.
  • 12A-30(5)  
    The amount mentioned in subsection (3) and the expected amounts of any later *AMIT dividend payments are to be worked out on the basis of the trustee ' s knowledge when the payment is made.

    12A-30(6)  
    Subsection (5) does not apply if the payment is a payment arising because of the operation of section 12A-205 (deemed payments).

    12A-30(7)  
    However, the payment is not an AMIT dividend payment in relation to the income year if:


    (a) the payment is a *post-AMMA actual payment in respect of another payment; and


    (b) the other payment arises because of the operation of section 12A-205 ; and


    (c) the other payment is an AMIT dividend payment.




    This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.