INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3A - Collection of tax in respect of certain payments for work  

Subdivision A - Object and simplified outline  

SECTION 221YHAAG   SIMPLIFIED OUTLINE  

221YHAAG(1)   Scope of section.  

The following is a simplified outline of Subdivision B.

221YHAAG(2)   Non-householders generally required to deduct.  

Generally, non-householders are required to deduct a set percentage of the prescribed payment.

221YHAAG(3)   Varying the amount to be deducted.  

The percentage is lower if the payee has made a ``payee declaration'' . If the declaration contains a ``deduction variation certificate number'' , the deduction is reduced further, and may be reduced to nil if the declaration contains a ``deduction exemption certificate number'' . On the other hand, a greater deduction must be made if the payee chooses to make a ``higher deduction percentage election'' .

221YHAAG(4)   Reporting obligations.  

Amounts deducted must be sent to the Commissioner under Division 1AAA , and also requirements relating to various forms must be complied with. The forms are:

(a) forms that are sent, under Division 1AAA , with the deductions; and

(b) annual or construction-project-based ``reconciliation statement forms'' (that reconcile amounts deducted and amounts sent) and ``payment summary forms'' .

221YHAAG(5)   Householder obligations.  

Payees who are to receive prescribed payments from householders must give the householders ``householder payment summary forms'' . Householders must send the forms to the Commissioner after the end of the project concerned.

221YHAAG(6)   Reporting exemptions.  

Payees who are given approval to quote ``reporting exemptions numbers'' can avoid having deductions made, and can relieve eligible paying authorities of their reporting obligations.

221YHAAG(7)   Issuing authorities.  

Authorities that issue permits for construction projects are required to give information to the Commissioner about the projects.

221YHAAG(8)   Application of deductions.  

Amounts deducted are applied in payment of the payee's tax liabilities.