INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 4 - Collection of withholding tax  

SECTION 221YQA   LIABILITY OF PAYER WHERE PART IVA APPLIES  

221YQA(1)   [Liability to pay]  

Where:

(a) the Commissioner has calculated the withholding tax that a taxpayer is liable to pay in relation to an amount paid by another person (the payer ); and

(b) in calculating the withholding tax, a determination or determinations made by the Commissioner under subsection 177F(2A) was or were taken into account;

the payer is liable to pay to the Commissioner an amount equal to the amount of additional tax that the taxpayer is liable to pay, by way of penalty, under subsection 226(1A) in relation to the amount.

221YQA(2)   [Recovery by payer]  

Where the payer has paid to the Commissioner an amount payable by virtue of subsection (1), the payer may recover an amount equal to that amount from the taxpayer liable to pay the additional tax to which that amount relates.

221YQA(3)   [Credit entitlement]  

Where an amount payable under subsection (1) has been paid to the Commissioner, the taxpayer liable to pay the additional tax to which the amount relates is entitled to a credit equal to that amount.

221YQA(4)   [Remittance]  

Where the payer has paid to the Commissioner an amount payable by virtue of subsection (1) and the additional tax or any part of the additional tax to which the amount relates is remitted by the Commissioner:

(a) any credit under subsection (3) that relates to the amount shall be reduced by an amount equal to the additional tax that is remitted; and

(b) the Commissioner must pay to the payer an amount equal to the additional tax that is remitted.