INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3 - Provisional tax  

Subdivision A - General provisions  

SECTION 221YAB   CERTAIN EMPLOYEES TO BE SUBJECT TO PROVISIONAL TAX  

221YAB(1)   [Application of section]  

This section applies to a taxpayer (not being a taxpayer in the capacity of a trustee) in relation to a year of income (in this section called the ``current year of income'' ) where both of the following conditions are satisfied in relation to the year of income (in this section called the ``preceding year of income'' ) that immediately preceded the current year of income:

(a) the amount calculated using the following formula is not less than $3,000:

Tax payable - Credited amounts

where:

`` Tax payable '' means the tax payable by the taxpayer in respect of the taxable income of the taxpayer of the preceding year of income;

Credited amounts means the sum of the following amounts:

(i) amounts applied under section 27CA in respect of payments made to the taxpayer during the preceding year of income;

(ii) amounts applied, in respect of credits under section 159GDA , in payment of the tax payable by the taxpayer in respect of income of the preceding year of income;

(iii) amounts applied, in respect of credits under Division 18 , 18A or 18B of Part III or under the Income Tax (International Agreements) Act 1953 , being credits in relation to income derived by the taxpayer during the preceding year of income;

(iv) amounts applied, in respect of credits under section 221H , being credits in relation to deductions from the salary or wages paid to the taxpayer during the preceding year of income;

(v) amounts applied, in respect of credits under section 220AZ , 220AZA , 220AZB , 221YHF or 221YHZK , being credits in relation to deductions from payments made to the taxpayer during the preceding year of income.

(b) the amount calculated using the following formula is not less than $3,000:

(Notional gross tax   −   Qualifying rebates)   −   PAYE deductions

where:

`` Notional gross tax '' means the amount of tax that would have been assessed in respect of the amount that would have been the taxable income of the taxpayer of the preceding year of income if:

(i) the assessable income of the taxpayer of the preceding year of income did not include amounts other than salary or wages; and

(ii) the assessable income of the taxpayer of the preceding year of income did not include any of the following:

(A) payments of amounts to which section 26AC applied;

(B) payments of a rebatable ETP annuity, or of a rebatable superannuation pension, (within the meaning of section 159SJ ) in respect of which the taxpayer is entitled in the taxpayer's assessment to a rebate of tax under Subdivision AAB of Division 17 of Part III ;

(C) eligible lump sums (within the meaning of section 159ZR );

(D) payments of assessable retirement amounts for the purposes of the definition of ``salary or wages'' in subsection 221A(1) ;

(E) eligible termination payments (within the meaning of section 221A ); and

(iii) the taxpayer had not been entitled to any rebate in the taxpayer's assessment in respect of income of the preceding year of income;

`` Qualifying rebates '' means the sum of the rebates under sections 23AB , 79A , 79B , 159J , 159K , 159L , 159SZ , 160AAAA and 160ACE to which the taxpayer was entitled in the taxpayer's assessment in respect of income of the preceding year of income;

PAYE deductions means the sum of amounts applied, in respect of credits under section 221H , in respect of deductions from the salary or wages paid to the taxpayer during the preceding year of income.

221YAB(2)    

221YAB(3)