INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 1C - Payment of instalments by companies and certain trustees  

Subdivision A - Interpretation  

SECTION 221AZI   REFERENCES TO TAX PAYABLE MODIFIED FOR YEARS IN WHICH TAXPAYER HAD NET CAPITAL GAIN  

221AZI(1)   [When section applies]  

This section applies if:

(a) the taxpayer's assessable income of a year of income ( ``the gain year'' ) included a net capital gain; and

(b) the amount of the tax assessed or payable by the taxpayer for the gain year is relevant for either of the following purposes:

(i) calculating the likely tax for the current year;

(ii) determining whether a penalty is payable under section 221AZP in respect of an estimate made for the current year; and

(c) the taxpayer is:

(i) a company; or

(ii) the trustee of a trust that is a corporate unit trust in relation to the current year for the purposes of Division 6B of Part III ; or

(iii) the trustee of a trust that is a public trading trust in relation to the current year for the purposes of Division 6C of Part III .

221AZI(2)   [Reference to recalculated amount]  

References in this Division to the tax assessed or payable for the gain year are to be read as references to that tax, as recalculated in accordance with this section. The recalculated amount applies only for the purposes mentioned in paragraph (1)(b).

221AZI(3)   [Recalculation: life assurance or registered organisation]  

If the taxpayer is a life assurance company or registered organisation, the tax is to be recalculated as the sum of:

(a) the tax on the CS/RA component of the taxable income; and

(b) the tax on the other components, recalculated on the basis that the assessable income to which the components relate did not include any net capital gain.

221AZI(4)   [Recalculation: all others]  

In all other cases, the tax is to be recalculated on the basis that the assessable income did not include any net capital gain.

221AZI(5)   [Definitions]  

In this section:

"CS/RA component"
has the same meaning as in Division 8 or 8A of Part III , as the case requires;

"life assurance company"
has the same meaning as in Division 8 of Part III ;

"net capital gain"

"registered organisation"
has the same meaning as in Division 8A of Part III .