INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 4 - Collection of withholding tax  

SECTION 221YQ   LIABILITY OF PERSON WHO FAILS TO MAKE DEDUCTIONS ETC.  

221YQ(1)   [Penalties]  

Where a person has refused or failed to make a deduction from a dividend, from interest or from a royalty in accordance with section 221YL or has contravened subsection 221YP(1), (2) or (3A) in relation to a dividend or interest, that person is liable, in addition to any other penalty to which he may be liable, to pay to the Commissioner:

(a) an amount equal to any unpaid withholding tax payable in respect of that dividend, interest or royalty; and

(b) an amount equal to any unpaid general interest charge payable under subsection 128C(3) in respect of that withholding tax.

221YQ(1A)   [Application]  

To avoid doubt, this section applies in relation to an amount that the Commissioner, under subsection 177F(2A) , determines to be subject to withholding tax as if the amount were subject to withholding tax at the time the amount was paid.

221YQ(2)   [Recovery from person liable]  

Where a person has paid to the Commissioner an amount payable by virtue of paragraph (1)(a), that person may recover an amount equal to that amount from the person liable to pay the withholding tax to which that first-mentioned amount relates.

221YQ(3)   [Credit to person liable]  

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

221YQ(4)   [Remission of additional tax]  

Where a person has paid to the Commissioner an amount payable by virtue of paragraph (1)(b) of this section and some or all of the general interest charge 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 amount of the general interest charge that is remitted; and

(b) the Commissioner shall pay to the person who paid the amount to the Commissioner an amount equal to the amount of the general interest charge that is remitted.