INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

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

Subdivision B - General rules for payment of instalments  

SECTION 221AZKA   CLASSIFICATION AND LIKELY TAX IN CERTAIN CASES  

221AZKA(1)   [Application]  

This section operates to alter the classification of taxpayers in certain circumstances. It applies where a taxpayer makes an estimate under section 221AZO (the ``first estimate'' ) before the end of the reckoning day and also makes an estimate under that section (the ``later estimate'' ) after the reckoning day and before the end of 2 months after that day.

221AZKA(2)   [Classification of taxpayer]  

If columns 1, 2 and 3 of a row in the following table apply to a taxpayer for the current year, the classification of the taxpayer for the current year is taken to be the classification in column 4 of that row:

	Column 1	Column 2	Column 3	Column 4
Row	Classification but for this section and section 221AZMA	Classification on the basis of assumption 1 in subsection (3)	Classification on the basis of assumption 2 in subsection (3)	Classification as a result of this section
1	Small	Medium	Medium	Medium
2	Small	Medium	Large	Large
3	Small	Large	Medium	Medium
4	Small	Large	Large	Large
5	Medium	Large	Large	Large

221AZKA(3)   [Assumptions]  

The following table sets out the assumptions referred to in subsection (2):

Assumption 1	Assumption 1 is that the first estimate was never lodged.
Assumption 2	Assumption 2 is that the later estimate was lodged immediately before the end of the reckoning day.

221AZKA(4)   [Calculation of taxpayer's likely tax]  

If this section operates, then, for the purposes of the calculation of the taxpayer's likely tax, the later estimate is taken to have been made immediately before the end of the reckoning day.

221AZKA(5)   [Classification subject to s 221AZMA]  

The classification of a taxpayer as a result of this section is subject to section 221AZMA .

Note:

Section 221AZMA may change the classification of a company from medium to large after this section has changed the classification from small to medium.