INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 1A - Collection by instalments of tax on companies in respect of years of income before the year of income ending on 30 June 1990  

SECTION 221AD   AMOUNT OF NOTIONAL TAX  

221AD(1)   [Notional tax]  

Subject to this section, the notional tax of a company in respect of a year of income is an amount equal to the income tax assessed in respect of the taxable income of the company of the year next preceding the year of income.

221AD(1A)   [Treatment of net capital gain]  

The reference in subsection (1) to the income tax assessed in respect of the taxable income of a company of the year next preceding the year of income shall, if by virtue of Part IIIA the assessable income of the company of that next preceding year included a net capital gain within the meaning of that Part, be construed as a reference to the income tax that would have been payable in respect of the taxable income of the company of that year if that net capital gain had not been so included.

221AD(2)   [Change in rates]  

Subject to the following provisions of this section, where:

(a) the rates of income tax payable by companies for a financial year are different from the rates declared by the Parliament for the next succeeding financial year; and

(b) provision is made by the regulations for varying the amount of notional tax of companies in respect of the year of income to the income of which the last-mentioned rates apply,

then, on and after such date as is prescribed, the notional tax of the company in respect of that year of income is the amount ascertained in accordance with subsection (1) as varied in accordance with the provision so made by the regulations.

221AD(2A)   [No assessment made]  

Where:

(a) no assessment has been made of the amount of income tax payable by a company in respect of its taxable income of the year of income;

(b) no assessment has been made of the amount of income tax payable by the company in respect of its taxable income of the year next preceding the year of income; and

(c) the Commissioner has reason to believe that income tax will be payable by the company in respect of its taxable income of the year of income,

then, subject to subsection (2B), the notional tax of the company in respect of the year of income is such amount as the Commissioner estimates to be the amount of income tax that will be so payable by the company.

221AD(2AA)   [Assumption re net capital gain]  

Any estimate made for the purposes of this section of the amount of income tax that will be payable by a company in respect of its taxable income of the year of income shall be based on the assumption that the assessable income of the company of the year of income will not include any net capital gain within the meaning of Part IIIA .

221AD(2B)   [Estimate of tax payable]  

Subject to subsection (3), where, in relation to an instalment of tax in respect of the income of a company of the year of income, the company has estimated in pursuance of subsection 221AG(1) the amount of income tax that will be payable in respect of its taxable income of the year of income and has furnished to the Commissioner a statement in accordance with that subsection, then:

(a) if the amount payable by the company as that instalment of tax is required to be ascertained under subsection 221AG(4) - on and after the date specified in the notice in respect of that instalment of tax served on the company in accordance with section 221AF as the date on which the amount specified in that notice was due and payable the notional tax of the company in respect of the year of income is an amount equal to the amount so estimated by the company; or

(b) if the amount payable by the company as that instalment of tax is required to be ascertained under subparagraph 221AG(5)(b)(i) - on and after the date specified in the notice in respect of that instalment of tax served on the company in accordance with section 221AF as the date on which the amount specified in that notice was due and payable the notional tax of the company in respect of the year of income is an amount equal to the amount estimated by the Commissioner under paragraph 221AG(5)(a) as the amount that, in his opinion, should have been the amount estimated by the company in pursuance of subsection 221AG(1) in respect of the year of income.

221AD(2C)   [Notice of assessment for previous year]  

Where:

(a) a notice is served on a company in accordance with section 221AF ;

(b) the amount specified in the notice as the amount payable by the company as an instalment of tax in respect of its income of the year of income is calculated by reference to a notional tax of the company in respect of the year of income ascertained in accordance with subsection (2A); and

(c) on or after the date shown on the notice as being the date of issue of the notice an assessment is made of the amount of income tax payable by the company in respect of its taxable income of the year next preceding the year of income,

this section has effect as if that assessment had not been made.

221AD(3)   [Assessment made]  

Where an assessment has been made of the amount of income tax payable by a company in respect of its taxable income of the year of income, then, on and after the date shown on the notice of that assessment served on the company as being the date of issue of that notice, the notional tax of the company in respect of the year of income is an amount equal to the amount of income tax so payable.