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 B - Operative provisions  

SECTION 221YHD   DEDUCTIONS WHERE PAYEE DECLARATION  

221YHD(1)   Section applies where payee declaration.  

This section applies if:

(a) an eligible paying authority makes a prescribed payment (in relation to which the eligible paying authority is not a householder) to a payee; and

(b) a payee declaration made to the eligible paying authority by the payee is in force when the payment is made.

221YHD(2)   Ordinary percentage to be deducted.  

In such a case, the eligible paying authority must, subject to this section, deduct the ordinary percentage of the payment. If working out that percentage of the payment results in an amount of dollars and cents, the cents are to be disregarded.

221YHD(3)   Deduction variation certificates.  

Subject to subsection (5), if:

(a) a deduction variation certificate number and deduction variation certificate percentage are stated in the payee declaration form; and

(b) the eligible paying authority reasonably believes the certificate is in force;

the eligible paying authority must deduct the deduction variation certificate percentage of the payment. If working out that percentage of the payment results in an amount of dollars and cents, the cents are to be disregarded.

221YHD(4)   Deduction exemption certificates.  

Subject to subsection (5), if:

(a) a deduction exemption certificate number is stated in the payee declaration form; and

(b) the eligible paying authority reasonably believes the certificate is in force;

the eligible paying authority must not deduct anything under subsection (2) from the payment.

221YHD(5)   Higher deduction percentage elections.  

If a higher deduction percentage election made to the eligible paying authority by the payee is in force in relation to the payment when it is made, the eligible paying authority must deduct the percentage of the payment stated in the higher deduction percentage election form. If working out that percentage of the payment results in an amount of dollars and cents, the cents are to be disregarded.

221YHD(6)   Offence.  

An eligible paying authority, other than a government body, that contravenes this section is guilty of an offence punishable on conviction by a maximum fine of $1,000.