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 2-10 - PAY AS YOU GO (PAYG) INSTALMENTS  

Division 45 - Instalment payments  

Subdivision 45-S - MEC groups  

Extended operation of Subdivision 45-Q

SECTION 45-915   APPLICATION OF SUBDIVISION 45-Q TO PROVISIONAL HEAD COMPANY  

Period during which Subdivision applies to provisional head company

45-915(1)    
Subject to sections 45-880 and 45-885 (as applied under this Subdivision), Subdivision 45-Q applies to a company as the *provisional head company of a *MEC group during the period:

(a) starting at the start of the *instalment quarter of the company determined under subsection (2), (3) or (4); and

(b) ending:

(i) at the end of the instalment quarter of the company determined under paragraph (6)(a) or (b); or

(ii) just before the instalment quarter of the company determined under paragraph (6)(c).

Note:

The application of Subdivision 45-Q to the provisional head company is subject to the modifications set out in this section and elsewhere in this Subdivision.

When the period begins - initial head company instalment rate

45-915(2)    
Subdivision 45-Q starts to apply to a company as the *provisional head company of a *MEC group at the start of an *instalment quarter under this subsection if, during that quarter, the Commissioner gives the company (as that provisional head company) the *initial head company instalment rate.

Note:

The operation of this subsection may be affected by section 45-885 (as applied under this Subdivision).

When the period begins - group created from consolidated group

45-915(3)    
Subdivision 45-Q starts to apply to a company as the *provisional head company of a *MEC group at the start of an *instalment quarter (the starting quarter ) under this subsection if all of the following conditions are satisfied:

(a) during the starting quarter, the Commissioner is notified of the creation of the MEC group from a *consolidated group (see subsection (5));

(b) the company is the provisional head company of the MEC group when the Commissioner is so notified;

(c) either of the following applies:

(i) Subdivision 45-Q applied to the *head company of the consolidated group at the end of the previous instalment quarter;

(ii) the Commissioner gives the *initial head company instalment rate to the head company of the consolidated group during the starting quarter.

Note:

For the application of Subdivision 45-Q to a head company of a consolidated group: see section 45-705 .

When the period begins - new provisional head company

45-915(4)    
Subdivision 45-Q starts to apply to a company as the *provisional head company of a *MEC group at the start of an *instalment quarter (the starting quarter ) under this subsection if both of the following conditions are satisfied:

(a) the company is appointed as the provisional head company of the MEC group under subsection 719-60(3) of the Income Tax Assessment Act 1997 during the starting quarter;

(b) one of the following applies:

(i) Subdivision 45-Q applied to the former provisional head company of the MEC group at the end of the previous instalment quarter;

(ii) the Commissioner gives the *initial head company instalment rate to the former provisional head company of the MEC group during the starting quarter;

(iii) the Commissioner is notified during the starting quarter of the creation of the MEC group from a *consolidated group and Subdivision 45-Q applied to the *head company of the consolidated group at the end of the previous instalment quarter;

(iv) the Commissioner is notified during the starting quarter of the creation of the MEC group from a consolidated group and the Commissioner gives the initial head company instalment rate to the head company of the consolidated group during the starting quarter.

When the period begins - modified timing for provisional head company that is monthly payer

45-915(4A)    

Subsection (4B) applies if:

(a) apart from subsection (4B), Subdivision 45-Q starts to apply to a company as the *provisional head company of a *MEC group at a particular time because of the operation of subsection (2), (3) or (4); and

(b) the company is a *monthly payer; and

(c) the Commissioner gave the *initial head company instalment rate as mentioned in subsection (2), subparagraph (3)(c)(ii), subparagraph (4)(b)(ii) or subparagraph (4)(b)(iv) in an *instalment month.

45-915(4B)    

Treat subsection (2), (3) or (4) (as the case requires) as providing that Subdivision 45-Q starts to apply to the company as the *provisional head company of the *MEC group at the start of the next *instalment month.

Note:

For the application of this Subdivision to a monthly payer, see sections 45-703 and 45-910 .

Notification of creation of MEC group from consolidated group

45-915(5)    
For the purposes of subsections (3) and (4), the Commissioner is notified of the creation of a *MEC group from a *consolidated group when the Commissioner receives a notice of the consolidation of the MEC group under subsection 719-40(1) of the Income Tax Assessment Act 1997 .

When the period ends

45-915(6)    
Subdivision 45-Q stops applying to a company as the *provisional head company of a *MEC group at the earliest of the following times after the company becomes the provisional head company:

(a) the end of the *instalment quarter during which the MEC group ceases to exist (other than because a *consolidated group is *created from the MEC group);

(b) the end of the instalment quarter during which a consolidated group is created from the MEC group;

(c) just before the instalment quarter during which another company is appointed as the provisional head company of the MEC group under subsection 719-60(3) of the Income Tax Assessment Act 1997 .

Note:

The operation of this subsection because of paragraph (a) may be affected by section 45-880 (as applied under this Subdivision).

45-915(7)    
To avoid doubt, Subdivision 45-Q does not apply to a company as the *provisional head company of a *MEC group for any time at all if:

(a) subsection (2), (3) or (4), and subsection (6), would, apart from this subsection, apply to the company; but

(b) the time at which Subdivision 45-Q would stop applying to the company under subsection (6) is before the time at which that Subdivision would start to apply to the company under subsection (2), (3) or (4).

45-915(8)    
To avoid doubt, Subdivision 45-Q may apply to a company as the *provisional head company of a *MEC group at a time when the company is not in fact the provisional head company of the group.

Note:

An example of this is when a company replaces another company as the provisional head company of a MEC group. Under this section and section 45-920 , Subdivision 45-Q may start applying to the company as if it had already become the provisional head company when it is not yet such a company.