INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 6A - Deductions from certain repayments of farm management deposits  

Note:

In addition to the obligations imposed on financial institutions in relation to farm management deposits under this Division, they are required to report information about such deposits to the Department of Primary Industries and Energy under section 264AA .

SECTION 221ZXK   CREDIT FOR AMOUNTS DEDUCTED UNDER SECTION 221ZXB  

221ZXK(1)   [Priority for crediting deducted amounts]  

If:

(a) a financial institution has deducted an amount under section 221ZXB in respect of the repayment of the whole or a part of a farm management deposit in the year of income; and

(b) an amount is or would be included in the owner's assessable income:

(i) if subparagraph (ii) does not apply - for the year of income, because of the repayment; or

(ii) if the repayment results from the deposit becoming repayable under a requirement in the agreement concerned as mentioned in subsection 393-40(3) of Schedule 2G (which covers death, bankruptcy and ceasing to be a primary producer) - for the year of income or an earlier year of income, because of the deposit becoming repayable; and

(c) an assessment has been made or amended in respect of the owner's income for the year of income or the earlier year of income;

the Commissioner must credit the amount so deducted in payment successively of:

(d) any tax payable by the owner in respect of the year of income or the earlier year of income, whether or not that tax is due for payment; and

(e) any other liability of the owner to the Commonwealth arising under or by virtue of this Act or any other Act of which the Commissioner has the general administration.

221ZXK(2)   [Refund of remainder]  

If any of the amount remains after that crediting, the Commissioner must refund it to the owner.