Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12A - Distributions by AMITs (including deemed payments)  

Subdivision 12A-C - Deemed payments by AMITs etc.  

Operative provisions

SECTION 12A-205   ISSUE OF AMMA STATEMENT ETC. DEEMED TO BE PAYMENT  

12A-205(1)    
This section applies if:

(a) an entity (the first recipient ) is or was a *member of a *withholding MIT in respect of an income year; and

(b) the withholding MIT is an *AMIT for the income year; and

(c) the AMIT gives the first recipient an *AMMA statement for the income year.

12A-205(2)    
For the purposes of this Part, Subdivision 840-M of the Income Tax Assessment Act 1997 and Division 11A of Part III of the Income Tax Assessment Act 1936 :

(a) treat the trustee of the *AMIT as having made a payment (the first deemed payment ) of an amount to the first recipient at the time the AMIT gave the first recipient the *AMMA statement; and

(b) treat the amount of the first deemed payment as being the amount worked out as follows:

(i) first, work out the total of all the *determined member components of all the *members of the AMIT of a character relating to assessable income for the income year;

(ii) next, identify each of the *pre-AMMA actual payments (if any) made to those members in respect of all payments by the trustee to those members that arise from the operation of paragraph (a);

(iii) next, identify every *AMIT DIR payment (if any) and each *fund payment (if any) that arises from each such pre-AMMA actual payment;

(iv) next, reduce the result of subparagraph (i) by the sum of each such AMIT DIR payment and fund payment;

(v) next, work out how much of the result of subparagraph (iv) is referable to the first recipient.

12A-205(3)    
Also, for the purposes of Division 11A of Part III of the Income Tax Assessment Act 1936 , treat the first recipient as having derived the first deemed payment just before the end of the income year to which the *AMMA statement relates.

12A-205(4)    
Subsection (5) applies if:

(a) the first recipient is a *custodian; and

(b) another entity (the subsequent recipient ):

(i) starts to have, at a time, an entitlement to an amount that is reasonably attributable to all or part of the first deemed payment; or

(ii) would start to have, at a time, such an entitlement if the first deemed payment were an actual payment of an amount.

12A-205(5)    
For the purposes of this Part, Subdivision 840-M of the Income Tax Assessment Act 1997 and Division 11A of Part III of the Income Tax Assessment Act 1936 :

(a) treat the first recipient as having made a payment (the subsequent deemed payment ) of an amount to the subsequent recipient at that time; and

(b) treat the amount of the subsequent deemed payment as being the amount of the entitlement mentioned in subparagraph (4)(b)(i) or (ii); and

(c) treat the amount of the subsequent deemed payment as being attributable to the first deemed payment.

12A-205(6)    
Also, for the purposes of Division 11A of Part III of the Income Tax Assessment Act 1936 , treat the subsequent recipient as having derived the subsequent deemed payment at the time the subsequent deemed payment arises.

12A-205(7)    
If:

(a) an entity is a subsequent recipient mentioned in subsection (4) (including as a result of a previous operation of this subsection); and

(b) subsection (5) applies with the result that a payment is treated as having been made to the entity; and

(c) the entity is a *custodian;

apply subsections (4), (5) and (6) again as if the entity were the first recipient mentioned in subsection (4).

Note:

This means that the entity is treated under subsection (5) as having made a payment to another entity if the other entity has (or would have) an entitlement as mentioned in paragraph (4)(b).