INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 6 - Deductions from certain withdrawals from Australian Film Industry Trust Fund accounts  

SECTION 221ZN   DEDUCTIONS FROM CERTAIN WITHDRAWALS FROM FILM ACCOUNTS  

221ZN(1)   [Withdrawal not dealt with in prescribed manner]  

Where a person withdraws an amount of money (in this subsection referred to as the ``relevant amount'' ) from a film account and the amount is not, upon withdrawal, dealt with in the prescribed manner, the person shall:

(a) if the relevant amount is, upon withdrawal, to be paid to a person as a refund of capital moneys expended by way of contribution to the cost of producing the film - upon withdrawal deduct from the relevant amount an amount equal to:

(i) if the person to whom the refund is to be made is a company, other than a company in the capacity of trustee of a trust estate - 39% of the relevant amount; and

(ii) in any other case - 47% of the relevant amount;

(b) if paragraph (a) does not apply in relation to the relevant amount - upon withdrawal deduct from the relevant amount an amount equal to 47% of the relevant amount;

(c) pay the amount deducted under paragraph (a) or (b) to the Commissioner within 21 days after withdrawing the relevant amount;

(d) (Repealed by No 11 of 1999)

(e) if the amount deducted under paragraph (a) or (b) is not paid to the Commissioner upon being deducted - upon the deduction being made, pay the amount deducted into the film account.

Note:

The person must also notify the Commissioner of the amount on or before the day on which the person must pay it: see section 221ZNA .

221ZN(2)   [Application by contributor for exemption certificate]  

Where a person (in this subsection referred to as the ``account operator'' ) makes a deduction in accordance with paragraph (1)(a) from an amount withdrawn from a film account for refund to a person (in this subsection referred to as the ``contributor'' ), the contributor may, within 7 days after the amount is withdrawn, apply in writing to the Commissioner for a certificate under subsection (3) exempting the account operator from the requirement of subsection (1) to pay the amount deducted to the Commissioner.

221ZN(3)   [Issue of certificate]  

The Commissioner shall, if he is satisfied that no deduction has been allowed under section 124ZAFA to the contributor in respect of any part of the amount expended by the contributor that, by virtue of section 124ZAH , is taken to be included in the amount withdrawn from the film account, issue to the contributor a certificate under this subsection in relation to the amount deducted.

221ZN(4)   [Certificate to account operator]  

Where the certificate is presented to the account operator:

(a) the account operator is not required to pay the amount deducted to the Commissioner; and

(b) the contributor is not entitled to a credit under section 221ZS in respect of the amount deducted.

221ZN(5)   [Penalty for non-compliance]  

A person must not refuse or fail to comply with paragraph (1)(a), (b) or (e).

Penalty: 10 penalty units.

Note:

For an alternative sanction for failing to deduct the amount required to be deducted, see subsection 221ZO(1) .

221ZN(6)   [Application]  

In determining for the purposes of this section whether capital moneys have been expended by a taxpayer by way of contribution to the cost of producing a film, sections 124ZAG , 124ZAL and 124ZAM shall be disregarded.