Taxation Laws Amendment Act (No. 1) 1995 (120 of 1995)

Schedule 1   VARIOUS AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

Part 10   PAYMENT OF INSTALMENTS BY COMPANIES ETC.

80   After section 221AZK

Insert:

Classification and likely tax in certain cases

"221AZKA.(1) This section operates to alter the classification of taxpayers in certain circumstances. It applies where a taxpayer makes an estimate under section 221AZO (the 'first estimate') before the end of the first day of month 9 and also makes an estimate under that section (the 'later estimate') after the first day of month 9 and before the first day of month 11. "(2) If columns 1, 2 and 3 of a row in the following table apply to a taxpayer for the current year, the classification of the taxpayer for the current year is taken to be the classification in column 4 of that row:

Column 1 Column 2 Column 3 Column 4

Classification but for this section and section 221AZMA

Classification on the basis of assumption 1 in

subsection (3)

Classification on the basis of assumption 2 in

subsection (3)

Classification as a result of this

Row section

1 Small Medium Medium Medium

2 Small Medium Large Large

3 Small Large Medium Medium

4 Small Large Large Large

5 Medium Large Large Large

"(3) The following table sets out the assumptions referred to in subsection (2):

Assumption 1

Assumption 1 is that the first estimate was never lodged.

Assumption 2

Assumption 2 is that the later estimate was lodged immediately before the end of the first day of month 9.

"(4) If this section operates, then, for the purposes of the calculation of the taxpayer's likely tax, the later estimate is taken to have been made immediately before the end of the first day of month 9.

"(5) The classification of a taxpayer as a result of this section is subject to section 221AZMA.

Note: Section 221AZMA may change the classification of a company from medium to large after this section has changed the classification from small to medium.".